After just a short breather at the end of 2021, buyers of NBSK pulp have to brace for higher prices again.
Pulp converters in Europe have seemingly fallen into a state of catatonic shock. Chances of near-term price cuts which many experts still considered likely in the fourth quarter are vanishing. Some experts expect at best stable prices until well into the second quarter. The balance of supply and demand would improve only when global logistics streams normalise. Only then could one expect pulp supply and correspondingly, prices, to ease on the European market.
For the current month, buyers must brace to pay more for softwood pulp, according to widespread forecasts. While industry insiders at first dismissed demands from a Scandinavian pulp producer for an increase from January as a feint to thwart further deterioration of prices, market players meanwhile believe that implementation of the hike is fairly likely. Other key NBSK producers have joined ranks to demand more from January.
This article is an excerpt from EUWID's report on the pulp market in Western Europe.
Find the full report in EUWID Pulp and Paper issue no 04/2022, which will be available to our e-paper and print subscribers as of 26 January.