Overcapacity led to a renewed price drop for hardwood pulp in August. Softwood pulp prices did not change against the background of a quiet month.
The eucalyptus pulp market in August still suffers from overcapacity. European converters therefore succeeded in their efforts to beat down prices. Not all converters had agreed on August prices by the first days of September, but in cases where contracts were finalised, prices were lower than in the previous month.
Prices in monthly contracts for northern bleached softwood pulp remained unchanged again and were carried forward into August. EUWID respondents report that there were very few discussions on prices. Most industry observers expect prices to make another sideward move in September. But in October, "the cards will be dealt again", one respondent said. Firstly, demand usually picks up from September and secondly, supply turns short because of maintenance breaks, he added.