Canfor Pulp announces US$80/tonne NBSK price decrease in Asia, to US$710/tonne, effective Nov. 1

LOS ANGELES , November 4, 2011 () – Northern bleached softwood kraft (NBSK) pulp producer Canfor Pulp LP has announced a US$80 per tonne price decrease for Asia, to $710/tonne, effective Nov. 1, the company said.

The company began notifying customers yesterday afternoon.

The move follows that of Mercer International Inc., which announced a $700/tonne (net) price for NBSK, as reported Nov. 2. Canfor Pulp produces a reinforcing grade of NBSK and sells it at a premium to commodity NBSK.

Russia’s Ilim group was the first bleached softwood kraft pulp (BSKP) producer to lower its price for China, going down $80/tonne, to $710/tonne CFR port/$680/tonne DAF. Its bleached hardwood kraft pulp price is unchanged at $650/tonne CFR/$630/tonne DAF.

On Nov. 1, Celulosa Arauco y Constitución SA (Arauco) in Chile said it had fixed nearly all of its November allocation of bleached radiata kraft pulp (BRKP) for China at US$670/tonne (net). Sources have said that BRKP pricing dropped to the mid-$700s/tonne during October.

Canfor Pulp has three mills in Prince George, British Columbia. Two mills produce NBSK exclusively, including 590,000 tonnes/year at the Northwood mill and 320,000 tonnes/year at the Intercontinental mill. A line at the Northwood mill recently restarted after delays connected with a recovery boiler upgrade during a maintenance shut, which resulted in lost output of 65,000 tonnes, or 25,000 tonnes more than had been planned.

The third mill, the Prince George mill, produces 120,000 tonnes/year of unbleached kraft pulp (UKP), 15,000 tonnes/year of semi-bleached pulp and 135,000 tonnes/year of kraft paper.




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