Softwood pulp prices continue to be under pressure in Europe, price increases for eucalyptus pulp were not always fully implemented.
Sluggish demand for writing and printing paper and a slow pace of general economic activity in Europe and the USA are increasing the likelihood of pressure being exerted on pulp prices on the European market. Only in the rarest cases, with speciality paper producers for instance, were softwood pulp manufacturers able to maintain their list price in May. Prices were down by an average of $10/metr.t in May, market players are expecting to see another reduction.
Although the market for hardwood pulp is still looking firmer, the headwind could become stronger here as well. Several buyers said they did not always accept the full extent of the May price increase for eucalyptus pulp. The spot market is also looking quiet at the moment. Converters believe they have a better chance to achieve a price reduction in June. European port stocks are expected to rise, which will enable pressure to be exerted on suppliers.
⇒ This article in an excerpt from EUWID's report on the European pulp market published in EUWID Pulp and Paper no. 24 on 13 June.
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