NBSK Pulp Prices saw an Uptrend in China in the Last Few Weeks of March 2024

NBSK (Northwood Bleached Softwood Craft) prices have undergone significant bedlam over the past few months. Several swing lines and pulp-dissolving plants have been through cessation for many reasons (including sustainability, environmental concerns, higher wood prices, and indolent demand). Lately, this has caused a hefty supply tumult, which has caused a dearth of NBSK and some upward trend in its prices.

2023, overall, saw a downswing in the prices of NBSK and caused many leading mills to send their operation in a sack. Now, with a series of downfall registered in spot prices of NBSK pulp, the prices have finally begun to witness a gradually trifling rise recently in China.

The global softwood market pulp industry is facing multiple challenges. Recent permanent mill closures have reduced capacity by over 8%. On top of that, ongoing strikes in Finland prevent an estimated 115,000 tonnes of pulp from reaching the market each week. Additionally, an explosion at a major Finnish mill has taken the world's only new source of NBSK pulp offline for repairs, further tightening supply. These disruptions come at a time when European pulp shipments to Asia are already facing delays and increased costs due to the Red Sea crisis.

North America and Europe have been consistently clambering for the past seven to eight months. However, due to dwindling demand dynamics, the enervating pulp industry isn't anticipated to garner significant impetus in these regions to flourish inordinately. China, too, though currently basking in an uptrend in NBSK prices, isn't expected to experience a protracted growth in NBSK prices.

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According to the article by Procurement Resource, the NBSK pulp market has faced turmoil with supply disruptions from plant closures, strikes, and accidents leading to price fluctuations. Despite recent price increases in China, overall demand remains weak globally. North America and Europe are struggling with stagnant demand, while China's growth is not expected to sustain. The industry faces challenges amid supply chain disruptions and market uncertainties.