Sdra has reduced its price for Northern Bleached Softwood Kraft (NBSK) pulp price by $30 to $680 per tonne.


It has also cut the price for its northern birch pulp by s30 to s690 per tonne.


"We took the decision to step out and clear the air and we are keeping it relatively low profile, but the reduction was inevitable," said Sdra Cell (UK) managing director Nigel Holland. "The pressure on pulp prices at the moment is certainly down, not up."


The new price level is valid with immediate effect and several other producers have followed suit.


Aracruz has also reduced the price for its Eucalyptus pulp by $40 to $650 per tonne, while Ence has reduced its price for Eucalyptus by s30 to s690 per tonne.


The drop in price could be a problem for paper producers, who will be under pressure to drop their prices, but a sudden rise in pulp prices could be expected if demand picks up in the second quarter.


The Asian sector will continue to push for the lowest possible prices as their stocks are at low levels.


This could lead to a rise in demand in the second quarter, followed by a sudden bounce back in prices as demand increases.


Story by Andy Scott