The price of Northern Bleached Softwood Kraft (NBSK) is set to fall even further, below the current FOEX price of $499 per tonne, as the downturn in pulp sales continues.


One market source said that the situation was grim at the moment, with little sign of an upturn before the end of the summer.


Market watchers said several key factors have caused the slump, including too much pulp coming on-stream at the same time, and a downturn in the US economy following the recent presidential election.


A source said that predictions last year were that 2001 would be very tough, but you dont get to be chief executive by being the man that took downtime.
Although market downtime continues to make the news, the signs are that the cheaper pulp coming in from Indonesia is poised to slow down.


Against this, it seems that PT Riau Andalan Pulp and Paper, which has said it would cut production by 30%, still has an extra 700,000 tonnes per annum due to come on-stream, which will add to the pricing pressure on the market.
Stora Enso will also take a further 50,000 tonnes of pulp downtime this month, and is ready to take more if necessary next month.


The evidence is that it is going to be a long hard summer, said the source.


Story by Andy Scott