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Forestweb North American Pulp Index moves up in June

LOS ANGELES, June 15, 2007 (press release) – The Forestweb North American Pulp Index gained 0.55% month-to-month in June as announced new prices began to be implemented.

The index was at 139.07 for the third consecutive month, a new high that was 12.71% above June 2006. The index has risen 3.17% this year.

North American hardwood producers have announced June price increases of generally $20/tonne, but those full levels were slow to kick in at the beginning of the month. Three Canadian producers are also hiking their NBSK list prices to $830/tonne, but the market price has not yet been changed. Most U.S. southern pine pulp producers are not raising their prices. Northern and southern bleached hardwood grades added about $10/tonne with transactions at $600-$610/tonne in North American markets. Bleached eucalyptus is trading at $640-$680/tonne, up $20.

The Forestweb Pulp Index represents North American demand and prices for the five principal chemical paper grade market pulps.

Forestweb’s price indices are Laspeyres indices that represent a statistical measure of a weighted average of printing and writing paper, pulp and paperboard prices and which summarize the relative changes in price levels over time using an arbitrarily chosen base period. All Forestweb indices use the base year 2000 except for pulp, which uses 2001 as the base year.

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