Huge downtime mandated by the Chinese government and taken by paper and board mills across the country this month is expected to continue in October and onwards, prompting Chinese buyers to cut pulp volumes. Pricing for pulp imports has seen escalating pressure as a result.
On top of weakening demand, pulp futures prices have been in decline. In response, sellers cut radiata pine prices further this week, by $15/tonne, following a cut of $30/tonne last week in their initial offers for October shipments. The erosion is weighing on NBSK prices.
Suppliers have kept prices intact for NBSK designated for futures deliveries so far but are looking at lowering prices after the seven-day National Day holiday that begins on October 1. Non-designated NBSK levels have edged down, though.
The drop led to both Canadian and Nordic NBSK levels clocking in this week at $760-830/tonne, down from last week’s $780-830/tonne, with NBSK CIF China closing at $795/tonne, down $10/tonne.