Negotiations over January bleached softwood kraft pulp prices continue

Suppliers are trying to increase long fiber pulp price by $30-50/tonne in Europe in January, 2007. Producers aim to increase northern bleached softwood kraft (NBSK) pulp prices by $30-40/tonne and southern bleached softwood kraft pulp by $30-50/tonne to $720-740/tonne. The softwood market remains strong due to large demand and woodchip shortages because of wet weather conditions in northern Europe. Birch prices have also raised from $670/tonne to $670-680/tonne due to tightness in the market. It is reported that short fiber producers are suffering from woodchip shortages and buyers are substituting the grade with other types of hardwood, specially eucalyptus. European consumer pulp inventories has dropped by 2.2% in December, 2006 and stocks decreased by 22,095 tonnes from 1.012 million tonnes in November, 2006, to 999,216 tonnes in December, 2006.