Pulp converters are expecting more discounts on NBSK prices to occur in July due to weak demand from the graphic and publication paper industry and surplus supply.
The downward trend in bleached softwood pulp market seems to continue in July. Following price reductions for NBSK in June, due to ample supply and weakening demand, European pulp converters are now calling for additional discounts.
Only a few EUWID source believe that price level for NBSK quoted in June can be maintained in July. In Italy, there are said to have already been transactions at cheaper prices in June. The pressure there, as usual in times of a buyer market, was particularly distinct and low-priced offers were readily available as the spot market was growing, it is learnt.
Market observers are expecting to see massive market-related stoppages in the paper industry in July and August, such as those already experienced or announced in the woodfree coated paper sector. It is being assumed that this will increase the surplus supply that already exists in softwood pulp.
Manufacturers of printing and writing paper are arguing that their own situation is poor. The start of summer is said to be looking slacker than ever before and even small orders are being accepted at bottom prices to ensure adequate volumes.
⇒ This article in an excerpt from EUWID's report on the pulp market. The EUWID Price Watch Pulp for July will be published in EUWID Pulp and Paper no. 31 on 3 August.
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