THE HEADWINDS IN THE pulp market grew stronger through April, with widespread reports of increased availability across most markets. Citing the strength of the euro, softwood suppliers to Western Europe laboured to push through a $40/t increase, with most producers only succeeding with half of the proposed hike. Meanwhile, softwood prices in North America and Asia came under pressure from increased offers of discounted tonnage. Hardwood markets remain tighter despite improved availability in some regions. April transaction prices for hardwood market pulp rose by $30/t in Asia and by $30-$40/t in Western Europe. In North America, the hardwood price increases had varying degrees of success, depending on the end-use sector. Tissue producers largely accepted a $30-40/t hike for BEKP, while printing and writing producers mostly resisted any increase in northern and southern hardwood prices. Recessionary pressures in North America are building and activity in the printing and writing sector is reacting. North American printing and writing demand fell by 4.7% year-over-year during March, with production volumes tumbling by 6.5%. Total U.S. newsprint consumption decreased by 11% compared to the prior year, despite an additional Sunday in March 2008. Meanwhile growth in US tissue production has become almost negligible. Although Western European printing and writing demand remains relatively firm, the second half of the year is forecast to be significantly more challenging.
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