Pulp and Paper Canada

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Pulp prices on the upswing


August 7, 2006
By Pulp & Paper Canada

BC pulp producers can expect to see a rise in profits, the Vancouver Sun reported.

BC pulp producers can expect to see a rise in profits, the Vancouver Sun reported.

A combination of high international pulp prices and low chip costs caused by the mountain pine beetle have combined to offer British Columbia’s pulp producers a bit of a break.

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The Sun reported that North American pulp prices are at $747 U.S. a tonne, and a further increase of $20-$30 per tonne has been announced for September 1.

“Strong worldwide demand and a reduction in capacity in the first half of the year has resulted in a substantial decline in worldwide inventories,” the Sun reported West Fraser president Hank Ketcham as saying. “This has led to a rapid improvement in U.S. dollar pulp prices.”

Canfor president CEO Jim Shepherd confirmed in a conference call that he is ‘very excited’ about the future of pulp.

Industry analyst Paul Quinn confirmed in a research paper that pulp supply is tight, at the same time that the industry is witnessing growing demand.

“Currently, global pulp markets are experiencing very strong pricing momentum due to growing pulp demand and a number of capacity curtailments,” the Sun reported him as saying.

Quinn further confirmed that there is high demand for NBSK.


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