Pulp firms under fire for price rises

Pulp producers have been accused of failing to listen to market warnings and of adding to the financial pressure on paper manufacturers, after Sdra put its prices up again.

One paper manufacturing source said: "Even the producers own staff are saying be cautious, with further pulp supplies due to come on-stream. But it seems they are content to see a cyclical market continue."

The source said the rise would also put more pressure on an already embattled market, which has been hit by environmental legislation such as the Integrated Pollution Prevention and Control (IPPC).

A print buying source said the rise would also put more pressure on paper manufacturers to raise prices.

Sdra said it would raise the price of its Northern Bleached Softwood Kraft (NBSK) pulp by 13 ($20) per tonne from 1 July, taking the price to 335 per tonne.

The Swedish producer said its stocks were at the lowest level since December 2000.