Mercer announces November NBSK pulp price of US$700/tonne for China

LOS ANGELES , November 2, 2011 () – Northern bleached softwood kraft (NBSK) pulp producer Mercer International Inc. has announced a November price in China of US$700 per tonne, according to a knowledgeable source.

This is the first known price announcement for China by an NBSK producer.

As reported yesterday, Celulosa Arauco y Constitución SA (Arauco) in Chile has priced its bleached radiata kraft pulp (BRKP) in China at $670/tonne (net).

And as reported on Oct. 25, Ilim Group in Russia decreased its bleached softwood kraft pulp (BSKP) November price in China by US$80 per tonne, to $710/tonne CFR port (cost and freight).

BSKP producers started out October with unchanged list prices in the low $800s/tonne (NBSK commodity was at $830/tonne, BRKP was at $820/tonne), with very little business to show for it. Sources said that as the month of October wore on, the BRKP price fell to the mid-$700s/tonne. At least one commodity NBSK producer, Domtar Corp., eventually set an October price of $780/tonne (down $50/tonne), but sources said Chinese BSKP customers were demanding prices of around $700/tonne or less.

The Vancouver, British Columbia-based Mercer produces NBSK exclusively and has a total capacity of approximately 1.5 million tonnes/year at mills located near Castlegar (the Celgar mill), British Columbia, near Stendal, Germany, and near Blankenstein, Germany.

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