Pricing Rationale: NBSK CIF China

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.

 

What to read next
The publication of Fastmarkets’ US and Brazil pig iron price assessments for Friday Feb 23 were delayed because of an administrative error.
Fastmarkets adjusted its assessments for the stainless steel scrap 430 bundles, solids, consumer buying price, delivered mill Pittsburgh and the stainless steel scrap 409 bundles, solids, consumer buying price, delivered mill Pittsburgh effective Monday February 12.
Fastmarkets is inviting feedback from the industry on the pricing methodology for its iron ore indices, as part of its announced annual methodology review process.
Fastmarkets welcomes your feedback on the following action: Prices for Region 4 logs in Log Lines will be discontinued, as those prices are generated by a third party and we no longer use third party information. Region 4, or the “Inland Region” includes: You can find the current methodology for Log Lines here. To provide feedback […]
Random Lengths is inviting feedback from the industry on pricing methodologies for Random Lengths and Random Lengths International as part of its annual methodology review process.
Fastmarkets launches MB-CU-0513 copper cathode equivalent grade (EQ), cif Southeast Asia, $/tonne on Tuesday February 20.