Final decision on open consultation on methodology review for Global Pulp

Full details of the prices covered by this consultation can be found here: https://www.fastmarkets.com/insights/open-consultation-on-annual-methodology-review-for-global-pulp-pricing-notice/

During the consultation, Fastmarkets requested comments on whether current discount levels for US market pulp have grown too high and invited open-ended feedback on potential remedies moving forward.

Feedback from the industry was mixed. Potential remedies suggested by the industry included resetting effective list prices with lower discounts than existing ones, the assessment of net prices on regular contract business, and maintaining the current effective list price system.

Fastmarkets has continued to hear concerns about the widening gap between net and effective list prices and is therefore evaluating market interest in adjusting existing effective list prices to more reasonable levels above net prices. IMPORTANT: Any such initiative would only be carried out in close consultation with industry stakeholders and with significant advance notice.

This consultation sought to ensure that our methodologies continue to reflect the physical market under indexation, in compliance with the International Organization of Securities Commissions (IOSCO) principles for Price Reporting Agencies (PRAs). This includes all elements of our pricing process, our price specifications and publication frequency.

You can find the current methodology for Global Pulp here:  https://www.fastmarkets.com/methodology/forest-products/global-market-pulp/

To see all Fastmarkets pricing methodology and specification documents, go to https://www.fastmarkets.com/methodology