Canada's Market-Pulp Shipments Rise Amid Strong Foreign Demand
March 29, 2011
MONTREAL -- Canadian market-pulp shipments rose 7.7% in June from a year earlier as stronger overseas demand led to record deliveries for the second month in a row, the Canadian Pulp and Paper Association said. Pulp deliveries amounted to 823,000 metric tons in June, up from 764,000 metric tons in June 2010 and 799,000 metric tons in May 2011, the industry group said. A metric ton is 2,204.62 pounds. Market pulp is wood pulp sold on the open market to producers of paper and other products. Demand from South Korea, China and Southeast Asia rose sharply from a year earlier, while demand from Western Europe and Japan strengthened from earlier this year, said Johanna Colton, an analyst with the association. It is unclear to what extent the strengthening demand represents an effort by customers to rebuild inventories. Pulp prices appear to have bottomed recently after a steep slide that began late last year, and producers are attempting to raise prices this month. Meanwhile, Canadian producers continued to drain their inventories. Mill stocks fell 140,000 metric tons in June to 634,000 metric tons. Based on current shipping rates, Canadian producers had an estimated 24 days of supply on hand at the end of June, compared with 33 days in May and 17 days in June 2010.
