Market pulp producers are set to drive through their 11th monthly price increase in a year, with $10-50/tonne hikes slated in North America, Western Europe, and Asia effective May 1.
Hardwood pulps set to rise $50/tonne. The $50/tonne BEK trend trickled down to other key hardwood grades. All North American producers of NBHK, with new US prices set for $910-930/tonne depending on grade and producer. Producers in the US South, which only recently started to recover from wood fiber woes in the wake of a wet winter, also have $20-50/tonne May 1 hikes on their respective grades.
Supply disruptions drive momentum. Producer sources widely believe there will be no resistance to this month‘s price increases because most hold little inventories and demand is strong.
A series of supply disruptions, from a devastating quake in Chile to wood fiber challenges and two worker strikes in Scandinavia, have led buyers to scour for tonnes this spring.
In addition, many producers must take maintenance outages during a time when their stocks are already slim, further crimping supplies.