SOP Good and Bad News
25-06-2009

The Chinese and Asian over capacities in Newsprint production have seen many mills changing to Printing and Writing papers. This has led to an increase in demand for bleached pulp, thereby increasing pulp prices, especially softwood with the flow onto bleached pulp substitutes.
 
Whilst bulk waste paper prices ( News, OCC & Mixed ) have softened in June by US$10-15 per tonne, high grade pulp substitutes have been stable with demand for good pure SWL and SOP remaining bullish, especially to China and Indonesia. CBS is in less demand due to yield loss and the downturn in Newsprint demand.
 
Looking ahead, the bad news is that America is only utilising an average 5% recycled fibre in its woodfree production. Europe only 9% and Asia 14-16% of furnish. Deinked pulp consumption is strong due to real and sustained interest in office papers recycled content in a variety of products, including copy papers, packaging, magazines, etc.
 
Consumption overall of recycled fibre in the northern hemisphere is either static or declining slightly since 2000. Japan has in fact been flat for twenty years with only Chinese and Indian mills consumptions growing this current decade. The movement of information from hard copy papers to electronic media will continue with American copy paper consumption shrinking by 20% in 2009.