Although not all contracts had been done and dusted by the end of the penultimate week of October, it was already more than evident that the pulp price erosion on the European market cannot be stopped in October, either, according to Euwid.
European pulp buyers and converters now can dictate prices. According to Euwid, they are using the oversupply situation and weak activity levels as leverage to push for further price reductions for NBSK and BEK pulp.
BEK and NBSK pulp prices nosedived by more than $150/t between June and September.
At least in Europe, pulp demand from the paper industry remains weak and capacity management measures performed by pulp producers were not enough to match supply with demand and prevent price from falling.
The stocks of bleached eucalyptus kraft (BEK) pulp are reportedly still extremely high and are posing a major problem for the entire pulp market, according to industry experts.