NBSK pulp prices are rising $20/metric ton

By Tom Stundza -- Purchasing, 5/21/2008 10:48:00 AM

Domtar informed North American customers this week that it will increase prices by $20/metric ton to $900 on northern bleached softwood kraft (NBSK) pulp, effective June 1. Purchasingdata.com’s monthly survey shows that May prices were stuck at $880 for the fifth consecutive month. PaperAge.com posts the same information.

However, industry contacts tell the RISIinfo.com forest products online newsletter they have expected a price increase on NBSK because of a widely held belief that supplies would decline in the wake of maintenance downtime at many mills, as well as the recent idling of Pope & Talbot’s pulp mills. In addition, RISIinfo.com reports to its clients that most NBSK pulp is produced in Canada, where producers are facing margin pressures due to high costs for fiber, energy and a strong Canadian dollar.