The Pulp Industry

Industry overview(1)

(1) RISI | PPPC SRN December/2017

The eucalyptus is the species for which pulp demand has been growing the fastest, increasing by 87% between 2006 and 2017, to a total of almost 24 million metric tons. Most of that growth has been in Latin America.

Brazil is the world's biggest producer of hardwood (short-fiber) pulp, because the Brazilian climate favors the cultivation of eucalyptus, a species that originated in Australia, is in Brazil that is at its most productive, not only because of the favorable climate but also due to the investment in forest technology. In turn, Eucalyptus pulp represents 73% of the entire hardwood (short-fiber) pulp market, with the demand at 24 million tons in 2017.

Ranking in terms of market BHKP production capacity (‘000 tons)

Source: RISI, Hawkins Wright, PPPC and Fibria (Nov 2016)

The pulp price

Pulp prices are quoted per region and depend on their Incoterms (ex. FOB, CIF, DDU,etc). The regions have their own dynamics, but the price used as a reference in the industry is the European price, as it remains the region with the world's largest consumer market.

The pulp price reference (hardwood) can be found at Bloomberg, with tickers: Curncy FOEXBHKP (Europe) and FOEXCUS Index (China), the prices are updated weekly.

Industry Information

We extract information from third parties mainly of monthly reports published by leading market consultants: Bracelpa-Brazilian pulp and Paper Association, RISI (Resource Information Systems Inc.), PPPC (Council of Pulp and Paper Product), Brian McClay, Poyry and Hawkins Wright, all are consulting firms specializing in the pulp market.

General Stops Calendar - Brazil

The General Stops of Factories calendar was carried out by the Technical Committee of Maintenance (COMAN). It is updated periodically to inform the period for maintenance of companies, assisting in the planning of the suppliers in this process. On ABCTP you can find the calendar of all plants: http://www.abtcp.org.br/ - "Atividades Técnicas" - "Calendário de parada geral".

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