China Imported BSK Pulp Market Faces Pressure as South American BHK Prices Hold Firm

China's imported bleached softwood kraft (BSK) pulp market remained under pressure in the week ending August 14 as domestic buyers favored lower-priced spot resale cargoes over newly imported shipments, according to Fastmarkets.

A decline in Shanghai Futures Exchange BSK pulp futures pushed down spot resale prices, widening the gap between domestic resale values and import quotations and reducing traders' incentive to restock.

Arauco maintained its list price for imported radiata pine at $670 per tonne. A Canadian supplier reduced its NBSK import price from $640 per tonne to $630 per tonne. Some shipments to China were reportedly sold at $620 per tonne before the supplier raised its price back to $630 per tonne as inventory pressure eased.

Fastmarkets said prices for Northern European NBSK remained at $630-$650 per tonne, while Canadian NBSK was assessed at $630-$645 per tonne. The median NBSK price estimate was unchanged at $639 per tonne.

In the spot resale market, NBSK prices fell by 23 yuan per tonne week on week to 4,685 yuan per tonne, equivalent to about $595 per tonne after VAT and logistics costs. The main BSK futures contract rolled from September to November on August 12, with the contract's import equivalent at about $601 per tonne last Friday, leaving no arbitrage opportunity.

Meanwhile, South American bleached hardwood kraft (BHK) pulp prices showed greater stability. Suzano maintained quotations at $560-$570 per tonne, while Arauco set its import list price at $570 per tonne. August business negotiations had not yet begun.

Fastmarkets' August 7 assessment for imported South American eucalyptus pulp in China was $560-$570 per tonne. Eucalyptus pulp resale prices fell by 6 yuan per tonne to 4,332 yuan per tonne, or about $549 per tonne after VAT and logistics costs.

The PIX BHKP China Pulp Index closed at $562.81 per tonne last Friday, down 0.01% week on week but up 14.09% year on year.