- Europe pulp prices stable, while US and China prices weaken: China prices continue to weaken further on the back of weaker futures and the ongoing government-mandated mill downtime. NOREXECO pulp futures for CY Q4 21E imply a 6-7% decline in Europe vs. a 0-1% decline in China. In the US, the spot market continues to erode (flat to down USD 30/t) on the back of increased spot availability. In terms of major planned pulp projects, Arauco has postponed its Mapa BEK pulp project (1.56mtpa: previously from Q2 21A to the end of 2021), now to start in March 2022. After this, UPM is expected to ramp-up its 2.2mtpa BEK pulp expansion in Uruguay during H2 22E.
- European CWF margin now in the green, with the CWF price up 3% w/w: After factoring in a 30% discount to list pulp prices, the CWF/HW spread moves into the green at EUR 10/t (UWF margin EUR 183/t). Sappi Europe has a applied a EUR 100/t surcharge on all invoices for all its products from 25 October until further notice. This is on the back of “unprecedented” energy prices. Burgo has announced a 12-15% price increase for all graphic paper grades. Lecta has announced a 12-14% price increase for all its specialty papers. In terms of UWF, the Navigator Company has announced up to an 8% price increase in all markets from 1 November. Additionally, an extra EUR 50/t will be charged “for the next few months”.
- Containerboard in the green, with testliner up 1.5% w/w: Schoellershammer (535ktpa of brown testliner) is set to increase its brown testliner prices by EUR 60/t in Europe (excl. UK, Spain and Portugal) from 1 November. This is on the back of “exploding” energy costs, unbroken sold demand and limited availability”.
Download Report
