Global pulp prices dropped significantly in the first quarter of 2023 and continue to fall sharply in the main markets. This scenario is motivated by the pressure of additional supply in an environment of relatively weaker demand.
According to PIX price index, from Fastmarkets Foex, last Tuesday, the value traded per ton of short fiber already represented a devaluation of $63.92 in one week, while long fiber fell by $24.70.
In China, according to Foex, on Friday 14th, the devaluation of short fiber reached $44.30 in one week, while long fiber fell $75.20. In one month, short fiber fell by $127.80 per ton.
According to market analysts, there is still room for further correction.
Considering the increase in supply, last week, UPM confirmed the start-up of operations at its unit in Paso de los Toros, Uruguay, adding another 2.1 million tons of pulp per year to the market. The first deliveries should take place in May.
