Pulp price may have new adjustment
The announcement by the producers should be made at the end of this year
The continued readjustments in the price of long fiber pulp should make room for another increase in short fiber in China. The announcement by the producers should be made in the final stretch of this year. If materialized, this will be the third increase in the price of this type of fiber in the largest world market since October, consolidating the price recovery curve, which has been below the marginal cost of the industry for more than a year.
Last Thursday, 10, Finnish Mëtsa Fiber reported another increase in long-fiber pulp, immediately raising reference prices to $ 700 per ton (Mëtsa Pine) and $ 710 per ton (Mëtsa Strong) in Asia , according to Fastmarkets Risi.
Thus, the spread between long and short fiber, whose net price in China is US $ 500 per ton, reaches US $ 200, a value well above the historical average of US $ 80. At this level of spread, according to a source, there must be greater migration to hardwood and, as a result, more demand and space for price increases.
Long fiber futures contracts have been on the rise since the end of October on the Shanghai Stock Exchange. The positive moment is due to the combination of restrictions in supply, fears about the lower availability of raw materials in the future and the lack of containers.
Suzano, a Brazilian pulp and paper company, is also announcing to its customers in Europe and the United States new prices for pulp as of January 1, 2021. When applying the adjustment, the effective price in the European market will reach US $ 750 per ton and $ 970 in North America, according to market sources.
The latest increase reported by Suzano, of US $ 30 per ton, would take effect in May, in Europe and North America. In Europe, the price had reached US $ 710 a ton and, in North America, US $ 920 per ton at that time, US $ 40 and US $ 50 respectively below the values that will be implemented in January.
