+40 dollars/t on the long fibre
Pulp beats price records: 1,130 dollars / t for NBSK and 1,030 dollars for BEK.
With a new increase in March, long fibre pulp will have increased by 38.5% or about 312 dollars / t, since December, 2016.
On the contrary, eucalyptus pulp price did not change in March thanks to a better availability in short fibre than in long fibre. It will have, still, progressed 56% or about 400 dollars/t, since December, 2016. But already a 20-dollar/t increase is announced for April, for eucalyptus pulp.
The long fibre pulp market remains very tense. Added the technical problems of plants and maintenance closures is the imbalance in terms of offers and demand, reducing pulp availability. As a result, the Fibre Excellence Saint Gauden's plant made a scheduled stop during part of March. It will start up again at the end of the month. "The production is stable and in compliance with expectations, " indicates our contact.
After the November 4th fire, Fibre Excellence Tarascon 's plant started up again in the middle of December and is working at 80 % of its capacity. Equipment (containing asbestos) restoration work is in progress. A stop scheduled for June, involves conformity work to be done in particular on bark and black liquor boiler and a waste water treatment plant.
Mondi announced in its financial results and maintenance stops in the first half of the year, for its Syktyvkar (Russia) and Richards Bay (South Africa) factories.
Supply problems do not simplify the life of the buyers, especially as they were informed about limited supply for April. Yet again an important crisis of offer versus demand. Already, Södra announced an increase on NBSK in 1 170 dollars/t in Europe on April 1st.
In this context, it is necessary to note that the weather conditions since autumn did not ease up the access to resources (wood) in some hilly areas.
"Nevertheless, raw materials were not missing," asserts a contact. Besides, it is necessary to note pulp deliveries towards China slowed down. According to PPPC, they decreased in 2,3 % in January and in 5.5% over the last two months. And stocks in ports (Europulp) slightly increased in France and in Switzerland. We will follow up on this.
MERGERS
With the purchase of Eldorado Brasil Celulose by Paper Excellence and the recent acquisition of Fibria by Suzano, the pulp market is solidifying. The players wonder about unintegrated mills, because alternatives are reduced. Technical problems in some pulp plants also have consequences, because the more their capacities are high, the more stops affect the paper industry .