• Pulp prices firmly in the green: NOREXECO pulp futures imply flat pulp prices for the rest of 2022 in Europe, while prices in China are expected to increase by 5-7%. For 23E, the futures imply an 9-14% decline in Europe, while prices in China are expected to decline by 3-5%. Suzano sets USD 100/t BEK price increase for Asia; USD 50/t for NA and Europe for all April orders. Paper Excellence announced a NBSK increase of
    USD 175-195/t effective immediately in China, having cited exceptionally high inflation, unforeseen developments in global supply chains, and significant cost pressures. An ongoing supply chain crisis in North America has seen market participants scrambling for market pulp from producing to consuming mills, leading the March contract and spot prices to surge USD 75-110/t.  
  • Graphic Paper in the green: After factoring in a 30% discount to list pulp prices, the CWF/HW spread increases by 3% w/w to EUR 185/t (UWF margin up 8% w/w: EUR 312). From the recent Fastmarkets RISI European paper conference, Sappi noted that “lead times and order books are unprecedented, ranging from 150-200 days. LEIPA Graphic Paper announced a price increase of EUR 180/t from April 1 due to the recent cost increases in energy, freight, and raw and auxiliary materials. Lecta set to apply additional energy surcharge on all paper grades of EUR 150/t, effective 1 April. Burgo announced that it will further increase prices for all graphic paper grades by a minimum of 15% for deliveries from 1 April. The Navigator Company is set to apply an energy surcharge effective 1 April on all UWF and packaging products of USD120/t in the US, and an EUR 105/t energy surcharge on all UWF and Packaging products in Europe, Middle East and Africa.
  • Most containerboard producers have announced a price increase of EUR 150/t from
    1 April to address cost pressures:
    Mondi brown and white kraftliner EUR 100-130/t (from 19 April) and testliner EUR 150/t (from 1 April) having cited a “tight market situation combined with rising input costs”; SAICA testliner EUR 125/t and kraftliner substitutes from EUR 50/t from 16 March; Smurfit Kappa Group kraftliner EUR 100/t and testliner EUR 130/t from April 1. DS Smith testliner EUR 150/t effective immediately. Burgo Group testliner EUR 150/t from April 1, 2022. Hamburger Containerboard and Heinzel all containerboard grades in Europe by EUR 150/t from 1 April. SCA EUR 100/t price increase for brown and white kraftliner in Europe from 1 April. “SCA see good demand in the market for kraftliner while supply is limited. Increased costs are evident and must be managed in order to safeguard stable supply of sustainable kraftliner”.
  • Further board price increases announced in North America and Europe: In North America, boxboard prices climbed in 2021 into 2022, with SBS folding carton up a total USD 330/t, SBS cupstock up by USD 350/t, CUK up USD 250/t, CRB up USD 270/t, and URB up USD 300/t. Graphic Packaging and PaperWorks have set a new USD 50/t price increase on SBS (+ for Sappi) and recycled grades by 8 April. In Europe, Iggesund is set to increase prices for all paperboard products by EUR 120/t for deliveries beginning 1 May. However, the European folding boxboard (FBB) market, which has been unusually tight, could loosen as 15% of European boxboard volumes go to Russia, Belarus and Ukraine.

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