• Pulp prices jump 4-7% in Europe, while stable in China: Import prices into China remain stable, while domestic resale prices and futures come under pressure. Two new cash settled pulp futures contracts launched on NOREXECO last week. The CY 22E contract implies a 11% decline in European pulp prices vs. a decline of 15-17% in China.
  • European graphic paper margins contract this week due to higher pulp prices: The CWF/HW spread drops 96% w/w to only EUR 2/t (UWF producers: down 18% to EUR 191/t), after factoring in a 30% discount to list prices. The Navigator Company is set to increase paper prices in North America from 1 July (8-10% for rolls and 6-9% for all cut-size). North American CFS market is facing challenges to meet demand, as supported with the April operating rate at a 102%. YTD, US CFS price is up 5% y/y and are set to increase further in June by 6-7%.
  • Containerboard in the green, with kraftliner leading gains (+2% w/w): Sappi confirmed an 8-10% price increase for all its containerboard grades, effective 1 July. YTD, testliner is up 33%, followed by kraftliner (+20%) and white-top kraftliner (6%). European OCC prices remain elevated but appear to have stabilized at EUR 174/t (+82% y/y).

Download Report