Although not all contracts had been done and dusted by the end of the penultimate week of October, it was already more than evident that the pulp price erosion on the European market cannot be stopped in October, either.
European pulp buyers and converters have the ability to dictate prices. They are using the oversupply situation and weak activity levels as leverage to push for further price reductions for NBSK and BEK pulp.
Thus, the stabilisation of NBSK pulp prices that pulp producers had been hoping for did not materialise in October. At least in Europe, pulp demand from the paper industry remains weak and capacity management measures perfomed by pulp producers were not enough to match supply with demand and prevent price from falling.
The situation remains bleak on the hardwood pulp market in Europe with another major cut in pulp prices on the horizon for October deliveries. The stocks of bleached eucalyptus kraft (BEK) pulp are reportedly still extremely high and are posing a major problem for the entire pulp market, according to industry experts.
This article is part of EUWID'smonthly market and price report on the pulp market in Western Europe.
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