- Europe pulp prices rise further, while China prices in the red: Chinese pulp prices slipped further this week, while domestic and futures prices improved slightly. NOREXECO pulp futures saw downward adjustments with the CY 22E contract implying a 13% decline in Europe vs. a 12-15% decline in China. Despite this, pulp supply appears to be balanced, with inventory levels under control. Logistics, especially container availability in Latin America, continues to hamper deliveries.
- 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 27/t (UWF margin -8% w/w to EUR 166/t). In China, fine paper prices have recently come under pressure, with the “biggest ever” price reduction in June (-20% m/m for coated paper and -13% m/m for UWF). This decline has been attributed to China’s recent crackdown on its private tutoring industry in order to ease pressure on children and to boost birth rates.
- European containerboard prices up 0.5-1.5% w/w: In North America, more box makers (Cascades, 6th largest and Kruger) announce price increases in the range of 10-14%, effective August. May US kraftliner board (KLB) exports continue to show producers’ efforts focussing on supplying domestic corrugated box plants. May shipments were down 5% m/m to 285kt, while YTD shipments are down 26% y/y to 1.46mt (China: -45% YTD). In terms of pricing, US KLB prices have increased m/m since October last year.
- Further solid bleached sulphate (SBS) prices announced in North America:Graphic Packaging, WestRock, Sappi, Rayonier Advanced Materials and BillerudKorsnas have all announced price increases of around USD 50/t (4-8%), effective 1 August. Sappi intends to increase its Spectro SBS grade by 5-8%.
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