Domtar announces pulp price hikes for North America, to US$1,010/tonne for NBSK, US$970/tonne for SBSK, US$870/tonne for SBHK, effective Jan. 1

Diane Keaton

LOS ANGELES , December 19, 2013 (Industry Intelligence) – Domtar Corp. today announced that it is increasing its Jan. 1 list pulp prices for North America, to US$1,010/tonne for northern bleached softwood kraft (NBSK), $970/tonne for southern bleached softwood kraft (SBSK), and $870/tonne for southern bleached hardwood kraft (SBHK), according to a knowledgeable source.

These were the same new Jan. 1 prices announced yesterday by Resolute Forest Products Inc. Resolute, which also sells northern bleached hardwood kraft (NBHK) pulp, announced the $870/tonne price for that grade, as well.

Canfor Pulp LP had announced the $1,010/tonne NBSK price for Dec. 1, but this was not followed by Resolute or Domtar, and the market remained at $990/tonne in December. Canfor Pulp has not rescinded its December price plan, so presumably it would still be active going into January.

That would make three major North American suppliers supporting the $1,010 NBSK price for January.

Resolute did not name the amount of its NBSK and SBSK increases, but its new prices are up $20/tonne from its previously announced prices. And Domtar does say they are up $20/tonne, according to the aforementioned source.

Neither Resolute nor Domtar named the amounts of their changes for hardwood pulp pricing in January.

Resolute had announced a June 1 $880/tonne price for NBHK and SBHK, but the market didn’t fully reach that level over the months and sources said it went down to $860/tonne in October, where it has remained.

Domtar manufactures market pulp at mills in Canada and the U.S., with a total capacity of more than 1.7 million tonnes/year of NBSK, SBSK, SBHK, fluff pulp, and specialty pulp.

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