Revised: Russia's Ilim slates US$10/tonne July NBSK price increase for China, to US$710/tonne CFR, with DAF price said to be US$670/tonne or US$680/tonne; several other major softwood pulp suppliers to China have already made July price hike plans

LOS ANGELES , June 26, 2014 () – Industry Intelligence Inc. editor’s note: Revised to include additional information about the announcements by Canadian NBSK producers.

Russia’s Ilim Group has announced a US$10/tonne July increase for China for northern bleached softwood kraft (NBSK), market sources have told Industry Intelligence.

The announcement was made earlier this week.

Sources said the new CFR gross price will be $US710/tonne.

Depending on the source, they said the new DAF price would be $670/tonne or $680/tonne.

This has not been confirmed with Ilim.

There have already been price hike announcements by several other major bleached softwood kraft pulp (BSKP) suppliers to China, ranging from $10/tonne to $30/tonne.

On June 17, Celulosa Arauco y Constitución SA (Arauco) of Chile announced that it would increase its July price of bleached radiata kraft pulp (BRKP) in China by $10/tonne, to $710/tonne. It is not changing its price of unbleached kraft pulp (UKP), currently at $690/tonne.

Canadian producers West Fraser Timber Co., Domtar Corp., and a British Columbia coastal producer have announced to $740/tonne for commodity-grade northern bleached softwood kraft (NBSK) pulp for July in China, industry sources said. West Fraser’s announcement is up $20/tonne. Mercer’s announcement for commodity-grade NBSK is up $30/tonne, to $750/tonne. Canfor Pulp LP is going to $750/tonne for reinforcement-grade NBSK; it didn’t state the amount of the increase.

Ilim’s market pulp output in 2013 exceeded 1.580 million tonnes, according to the company’s website. In his June Market Pulp Monthly report, industry consultant Brian McClay wrote that Ilim’s new 720,000 tonnes/year Bratsk line, which started up in 2013, will begin ramping up to full speed after repairs are made during a two-week maintenance shut in late June.

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