International Paper Pulp Prices Soar

Coarse screening system
With the increasing awareness of energy conservation and environmental protection, the proportion of waste paper pulp in the paper industry has been continuously increasing and has gradually become the main raw material for paper making, which has led to the rising prices of waste paper and pulp. The following is the international pulp price rising trend since September 2017.

International pulp prices soar in recent months

Since September 2017, the international price of pulp has started a new round of upswing. In October, the price of long pulp in the Asian market was raised by as much as $ 100 / t while that of eucalyptus-based pulp increased by $ 60 / t, the largest single gain in nearly 10 years. In fact, the higher spot market prices, NBSK prices over 900 dollars / t, while BEK more than 800 dollars / t, the Asian pulp market is at least 20 years, a record high.

In Europe and the United States, October short fiber pulp price increase is not as high as the Asian market, if less discount, it is possible that the actual transaction price is lower than the Asian market, in other words, the current Asian pulp prices have been living in the world high-end, for paper mills, material costs have risen dramatically. In October, the new price has not yet been implemented, the international pulp mill has been further boosted by the situation, but this month, drastically lifting the selling price, the downstream acceptance is yet to be seen.

International pulp price increase in September-November 2017

Time Area Long fiber slurry rose (dollar/t) Long fiber slurry(dollar/t) Short fiber slurry rose (dollar/t) Short fiber slurry quote (dollar/t)
September, 2017 Asia 30-55 670-740 30 670
October, 2017 Asia l00 820 60 735
Western 40 1,130 30 1 ,090
November, 2017 Asia 60 30

Demand in China drove pulp price growth

Industry analysis, the sudden surge in the price of pulp in the Asian market, mainly due to the stringent environmental protection policies implemented in mainland China. In recent years, the Chinese government has actively implemented the closure and transfer measures of the paper industry to substantially eliminate medium and small size pulp and paper mills that do not meet the economic and environmental requirements. According to statistics, from January to August 2017, the total output of paper and paperboard in China has increased by 5.75 million tons as compared with the same period of 2016, and the amount of pulp needed is very huge.Demand in China drove pulp price growth

Pulp price is possible down in later market

According to the market advisory body’s forecast, in recent months, the soaring amplitude of the pulp price is mainly caused by the surge in demand in the Chinese market. As soon as many new production capacities are put on the market, pressure will be put on the pulp price climbing to the upside. As a result, The probability of a sharp drop will then surge. Of course, the rapid changes in the international political and economic situation, the market trend still need close observation.

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