Global
The influence of multiple factors on the price increase of global pulp
In recent years, the rising of the global paper and pulp market price has become a topic of widespread concern in the industry. Since the end of last year, the global paper and pulp market prices have risen due to the sea freight rate and high prices of waste paper raw materials.
Three wave price rise tide of pulp
After entering February, pulp prices have risen to a new level. Last summer, UKP pulp prices were $450-500 / ton. After autumn, prices began to rise. In February, the price of China’s UKP list exceeded $700 / ton for the first time in several years. In March, the price was raised again, with the price range of 700-750 USD / ton.
Credit Suisse said recently that Brazilian goldfish company has informed customers in China, North America and Europe about the further increase in pulp prices. On February 1, the delivery price of pulp exported to China was $580 / T, up $50 from the previous. In fact, the company just rose $30 to $530 / ton early this year, and another $50 a month later.
In addition, since the beginning of the year, the pulp price exported by goldfish to Southeast Asia and the Middle East has also increased to $600 / ton. Since February 1, pulp prices exported to North America and Europe have risen by $70 per ton, respectively. Accordingly, the price of pulp exported to Europe rose to $820 / T and that for North America rose to $1040 / ton.
In December, goldfish announced that the delivery price of pulp exported to Europe in January increased to $750 / T, while the delivery price of pulp exported to North America rose to US $970 / T in the same period. Swedish pulp maker rottenerus also announced that the price of bleached chemical hot grinding machinery pulp exported to Asia rose by $75 a ton from February 1.
The price of pulp and recycled paper in Malaysia has risen 20 to 40 per cent in the past three months.
Industry analysts said that the reason why pulp became a huge market is due to the rapid recovery of China’s economy. The performance of Brazilian goldfish, the world’s largest Eucalyptus BKP manufacturer, benefited.
The sales price of different types of pulp increased
European commercial pulp manufacturers have also announced a rise in the market price of pulp. The price of bleached kraft coniferous pulp (NBKP) began to rise as early as December last year. Since this year, the price of bleached kraft broad-leaved pulp (lbkp) has also been raised. There are rumors that NBKP has the possibility of further price hikes. Eucalyptus BKP is the same, and it is possible to raise prices again this year.
There are other reasons for the rise in the price of European pulp makers, according to analysis, namely, the appreciation of the euro currency. Pulp price is traditionally priced and settled in the dollar based currency. When North American pulp manufacturers announce their prices, European pulp makers will determine their Euro prices accordingly at the prevailing exchange rate. However, the stronger the euro is against the dollar, the lower the real yield of the euro. The euro has been appreciating recently, so European pulp makers have to raise prices to adjust.
The report points out that due to the increase of e-commerce and mail order demand and the decrease of waste paper recycling, the problem of paperboard shortage in Asian countries will become increasingly serious, and the price rise caused by the imbalance between supply and demand may last for a while. However, the price of UKP pulp of $800 / T and BKP pulp exceeding $900 / T may be lowered in the near future due to excess demand.
In addition, the Asian waste paper market, due to the tight container transportation in various countries and the reduction of waste paper recycling, the delivery of raw paper is slow, and the inventory of paper and pulp manufacturers is very low.
The main reason for the paper price rise is pulp or paper price
The total output of paper and board in December rose 4 percent year on year, according to statistics released by the American forestry and Paper Association earlier this year. Because of the novel coronavirus pneumonia epidemic, e-commerce and mail order sales are strong, and the sales of food and furniture are booming. Therefore, the growth of American cardboard consumption was promoted, with the export of cardboard decreased significantly in the same period, and the inventory of major manufacturers decreased by 3000 tons compared with the same period last year.
In analyzing the reasons for the continuous price rise of paper products, Japanese industry pointed out that the first reason for the increase in the price of paper products is the increase of raw material cost pulp price. Secondly, the increase of logistics cost. Again, the demand for paper media has declined. In addition, the changes of consumption structure of paper products brought by the epidemic, such as the increase of domestic paper, the increase of demand for cardboard, the decrease of printing and information paper demand, the conversion of plastic products to paper products, etc., are also factors that can not be ignored.
Due to various factors affecting the price of paper products, industry insiders said that the future trend of paper products prices is difficult to predict. At present, the novel coronavirus pneumonia has not led to the reduction of paper products and other paper products. Especially the emergence of new crown pneumonia and the uncertainty of the world economic outlook have brought an unpredictable veil over the price of paper products. People can only take the opportunity to change the situation.
Post time: Mar-24-2021