• February 2022 average price changes (Europe unless otherwise stated): NBSK pulp +2% m/m; +35% y/y; +6% vs. 2021 average. BHKP pulp +0% m/m; +50% y/y; +13% vs. 2021 average. China BHKP net pulp +8% m/m; +7% y/y; -5% vs. 2021 average. China NBSK net pulp +6% m/m; +3% y/y; -3% vs. 2021 average. LWC +10% m/m; +48% y/y; +35% vs. 2021 average. CWF +10% m/m; +42% y/y; +27% vs. 2021 average. UWF +0% m/m; +26% y/y; +21% vs. 2021 average. Newsprint +28% m/m; +64% y/y; +40% vs. 2021 average. Kraftliner +1% m/m; +47% y/y; +23% vs. 2021 average. Testliner +1% m/m; +53% y/y; +23% vs. 2021 average. OCC +1% m/m; +48% y/y and +10% vs. 2021 average.                                       
  • Pulp prices in the green again this week: The NOREXECO pulp futures for 23E imply an 8-14% decline in Europe, while prices in China are expected to decline by 6-10%. Eldorado announced a USD 30/t increase for BEK globally from 1 March. According to PPPC, global pulp producer inventories increased by 2 days to 44 days-of-supply (HW: 42 and SW: 46) in January, while shipment-to-capacity dropped to 79% (Jan 21: 86%), more of a reflection of severe supply side disruptions rather than weaker demand.  Meanwhile, global market pulp shipments were down 4% y/y and down 14.3% m/m. Stocks of woodpulp at European ports declined by 1.7% m/m (-12.3% y/y) in January.
  • Graphic Paper in the green again this week: After factoring in a 30% discount to list pulp prices, the CWF/HW spread is now EUR 195/t (UWF margin EUR 307). Mondi announced a USD 40-80/t price increase in North America for UWF from its central European mills, Neusiedler and SCP (Ruzomerberok) from 28 March. Lecta to increase CWF and UWF grades by a minimum of EUR 50/t from 1 March. Navigator is increasing UWF price in Turkey by 8-12% from 7 March. In Finland, UPM strike has been extended for a further three weeks until 2 April 2022 (started 1 January).

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