Pulp prices in the EU reached a record high in April 2024, reaching the highest level since records began in 2016. The price of Northern Bleached Softwood Kraft (NBSK) pulp [Mintec Code: EX24] increased by 7% m-o-m to €1,380/MT in April (+14%, y-o-y), versus the previous high of €1,335/MT in Dec 2022.
Source: Mintec Analytics
The price of pulp has been rising steadily since October 2022, as the demand for pulp continues to increase amid slower supply growth. According to Eurostat, the production index for paper and paper products increased by 6% from October to February, resulting in demand growth for pulp. However, pulp producers expect the growth in paper production to be limited, thus, anticipating a restrained demand for pulp.
Rising pulp prices have had a direct impact on the EU paper industry. Paper producers have faced rising costs for some time, and have sought to raise product prices since the beginning of 2024. However, the first price increases occurred in April. Kraftliner prices in the EU rose by 7% m-o-m in April, while testliner prices rose by 10 % m-o-m. Market sources indicate that paper producers will continue to increase paper prices in May and June to cope with rising production costs.
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