Ence announces US$30/tonne eucalyptus pulp price hike for Europe, to US$780/tonne; Suzano, Fibria, Cenibra also plan same price for Oct. 1

MADRID , October 5, 2012 (press release) – Industry Intelligence Editor's Note: Three Brazilian bleached eucalyptus kraft pulp (BEKP) producers have announced an Oct. 1 $780/tonne price increase: Suzano Celulose y Papel SA led with it on Sept. 28, followed by Celulose Nipo Brasileira SA (Cenibra) on Oct. 2. As well, on Oct. 1, Fibria Celulose SA told customers in Europe that it would not do October business below $780/tonne.

• According to the main sector analysts, demand for short-fibre paper pulp worldwide will rise by more than 14% from 2012 to 2015, which is forcing prices on the international market to increase.

• Ence has more than 15% of the market share in Europe and exports 85% of the pulp produced.

Ence-Energía y Celuosa will increase the sale price of its paper pulp to customers from the current price of 750 dollars to 780 dollars per ton. This step reflects the upward trend in the price of BEKP pulp -the short-fibre paper pulp that Ence produces- in the market worldwide as a result of the recent changes in demand, according to the estimates of the main market analysts.

In this regard, the estimated average annual demand, which increases from 26.7 million ton in 2012 to 30.5 million in 2016, representing an increase of 14%, is shown in the graph below:

Source: Hawkins Wright, RISI, CCCP       (data in millions of tons)

It is noteworthy of mention that tissue paper demand -which is made with short-fibre paper pulp- has maintained an average growth rate of more than 4% and performed very positively in new markets with high growth potential, especially in China where the use of this type of paper has been significantly increased in recent years, with annual growth rates of more than 10%.

Ence is the leading producer in Europe of eucalyptus pulp on the market and the second largest company in terms of sales in Continental Europe with annual sales over 1.2 million tons, which represents a share of more than 15% of the European market. The company exports more than 85% of its pulp produced as a result of its advanced logistics network and the quality of its products, which includes totally chlorine-free (TCF) pulp that is highly valued by countries in Northern Europe.

In this regard, Ence has excellent geographic diversification in the markets and a strong presence in the main European markets, especially in Germany, Italy and France. The company carries out its activities in the paper segments with the largest growth rates, such as tissue paper, which represents the greatest percentage of its sales (almost 50% of total sales).

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.