Domtar lowers Nov. 1 NBSK pulp price in North America by US$30/tonne, following recent US$50/tonne October decrease in China

LOS ANGELES , October 26, 2011 () – Domtar Corp. today announced a Nov. 1 US$30 per tonne decrease in North America of northern bleached softwood kraft (NBSK) pulp, bringing its list price to $920/tonne, buyer sources said.

This is the first known price announcement for North America. In the last couple of months, Canfor Pulp LP led with $20/tonne price reduction announcements.

However, some sources said Terrace Bay Pulp in Terrace Bay, Ontario, has effectively dropped its November spot price for North America by $70/tonne.

Domtar also recently reduced its October NBSK list price in China to $780/tonne, from $830/tonne. And Canfor Pulp LP dropped its October list price in China by $50/tonne, to $790/tonne; it produces a specialty reinforcement grade. Sources said prices need to fall to around $700/tonne or below for Chinese customers to bite.

Domtar produces market pulp at mills in Canada and North America, with a total capacity of more than 1.7 million tonnes/year of NBSK, southern bleached softwood kraft (SBSK), northern bleached hardwood kraft (NBHK), southern bleached hardwood kraft (SBHK), fluff pulp, and specialty pulp.

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