High stock levels continue to give buyers bargaining power on the pulp market

Pulp prices have been sliding since November 2018
26 Jun 2019 − 

At the end of the third week in June by far not all negotiations on June prices were finalised, but producers said that in a few cases, agreement had already been reached.

The picture presented by the European pulp market has not changed much in June either. It is a buyers’ market, as supply still far exceeds demand. Therefore, prices tend to continue to fall across all grade areas.

High excess supply remains the most striking feature on the market for Northern bleached softwood sulphate pulp. Demand from some sections of the paper market leaves much to be desired, with reports indicating that orders from the tissue paper industry have as yet been least hit by the economic downturn. And not to forget that the summer lull with traditionally lower demand is still imminent and will further cut activity in the pulp sector.

Nevertheless, producers seem firmly convinced that the market will most likely turn around this autumn. This year numerous maintenance downtime periods that traditionally tended to be taken during springtime in the last couple of years will be seen in September/October, which is likely to cut supply substantially.

This article is an excerpt from EUWID's market and price report on the European pulp market, available to our subcribers.

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