• Pulp prices broadly stable: Pulp prices in China under slight pressure. Latest pulp inventory figures for the four major Chinese ports indicate stock levels increased by c.12% m/m in May to c.2.05mt, perhaps indicative of reduced purchases by end customers due to high pulp prices. NOREXECO pulp futures for CY 22E contract implies a 11-13% decline in Europe vs. a 15-16% decline in China.
  • European graphic paper margins weaken further: After factoring in a 30% discount to list pulp prices, the CWF/HW spread is further in the red at -EUR 11/t (UWF producers: down 3% to EUR 179/t). North American CFS producers (including Sappi) confirm a 6-7% price increase effective July. This is on the back of improved demand and continued pressure on supply, logistics and raw material costs. YTD, CFS prices are up c. USD 100/t in June and could reach USD 140/t if price increases are successful. CFS imports have reduced from Europe and Asia due to high freight rates and limited container space.
  • European containerboard prices up 1% w/w: Hamburger announced a EUR 40-50/t increase for bleached and unbleached kraftliner. International Paper, the largest integrated containerboard and corrugated box producer in North America (32% of domestic containerboard capacity) is set to increase linerboard and corrugating medium by USD 60/t from August. Pratt and Hood have confirmed similar price increases.
  • US June boxboard prices move up further (+ read-though for Sappi): SBS folding carton grade prices are up USD 50-100/t since March and with USD 150/t targeted. SBS cupstock/food service is up USD 30-50/t, with USD 150/t also being targeted by some producers.

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