Midland PaperclipsIndustry News
Pulp producers are facing increasing pressure on prices as conditions shift more in favor of buyers.
The slowing of China demand that began in April has spread from one extent or another to other markets. Producers of various kinds of pulp acknowledged that June could be difficult both price- and volume-wise, and that the third quarter, which tends to be slow anyway during the Northern summer, is likely to follow the usual pattern. Bleached hardwood kraft pulp (BHKP) markets remain stronger than those of bleached softwood kraft pulp (BSKP) markets around the world. But weakening BSKP prices, especially in China and to some extent in Europe, coupled with recent rising global BHKP prices, have brought the two sectors so close together in price that customers are shifting some demand to BSKP. For the most part, the announced May bleached eucalyptus kraft pulp (BEKP) price hikes did not go through fully during the May, and given current market conditions, it could be a struggle to achieve the remainder during June.
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