The price of hardwood pulp keeps rising until year-end
Up to September 2017, total demand for hardwood pulps grew by 3.6% on the same period in 2016, and reached 24.7 million tonnes – a million more than the same period last year
The third quarter of 2017 saw a 12% hike in the American dollar (USD) price of bleached eucalyptus pulp (BEKP), compared with the previous quarter. Analysed in Euros, this figure represents an increase of 5%. The upward trajectory of the price of hardwood pulps can be explained by increased demand and because there were unforeseen stoppages of pulp producers in the second quarter of 2017.
It must be highlighted that a new factory has commenced operation in Brazil – Horizonte 2, owned by the Brazilian company Fibria. The report by the Pulp and Paper Products Council (PPPC World Chemical Market Pulp Global 100 Report), of September 2017, further notes that in the first nine months of the year in progress, total demand for hardwood pulps grew by 3.6% on the same period in 2016, and reached 24.7 million tonnes, which represents an increase of around a million tonnes.
The type of hardwood pulp produced from eucalyptus saw demand rise by 2.9% in the same period. At the end of September 2017 there were 40 days in inventory, whereas a year ago there were 43. The 3 days in inventory arose from August to September 2017.
The market analysis carried out by the Pulp and Paper Products Council estimates that, in the short term, the BHKP sale price will continue this upward trend and reach historic highs.