• China pulp prices fall further ahead of Golden Week holiday: This was on the back of downtime and weaker futures prices (October: USD 832/t; November: USD 773/t; December: USD 725/t). Mass downtime for Chinese P&B producers is expected to persist well into Q4. NOREXECO pulp futures for CY Q4 21E imply a 7-9% decline in Europe vs. a 1-2% decline in China. In the US, the spot market continues to erode (down USD 20/t) on the back of high producer inventories and weakness in China.  
  • European CWF margins remain in the red, while UWF prices up 1.3% w/w: After factoring in a 30% discount to list pulp prices, the CWF/HW spread remains in the red at -EUR 17/t (UWF margin EUR 180/t). Lecta has announced plans to increase CWF sheets and reels by 12-14% for all new orders to offset the “exceptional increase” in raw materials (gas, electricity, and chemicals).  
  • Containerboard in the green, with kraftliner up 2.3% w/w: Saica set to increase all its testliner prices by EUR 50-60/t in Iberia from 8 October. Primary reason for the increases is cost driven (rising costs for PfR, energy, transport, and utilities).
  • North American boxboard producers target further increase: Sappi will raise its Proto and Luster SBS products by USD 50/t and raise its Spectro sheets and sheeter rolls by up to 10%, all effective Oct. 28. Sappi earlier set an SBS increase of 5-8% effective Sept. 6. In Europe, Mayr-Melnhof is set to increases FBB by EUR 90/t from 1 Jan 22.

Download Report