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048 PULP & PAPER
marKet
develoPment
The market for pulp production plants and
systems showed a varying development during
2008. During the first three quarters of
2008, investment activity remained satisfactory,
both for modernizations and greenfield
projects, in spite of the prevailing financial
and economic crisis. During the fourth quarter,
however, project activity declined significantly,
mainly as a result of the marked decrease
in pulp prices, capacity reductions in
pulp and paper mills in the USA and Europe,
and difficulties in the financing of single projects.
This development was also reflected in significant
pulp price changes during 2008. The
price for NBSK (Northern Bleached Softwood
Kraft Pulp) increased from approximately
860 USD per ton at the beginning of
January to approximately 920 USD per ton at
the beginning of July. Then it started to decline
and was at 650 USD per ton at year’s
end, with spot prices being significantly lower.
The main reasons for the marked price
decrease during the fourth quarter of 2008
were a significant reduction of pulp inventories,
the substantial decline in pulp demand,
particularly in China, as a result of the economic
downturn, and the strength of the US
dollar against the Euro.
The price for short-fiber pulp (birch and eucalyptus)
showed a similar development. It increased
from approximately 750 USD at the
beginning of January 2008 to approximately
850 USD at mid-year and – due to the difficult
economic situation – decreased markedly
to approximately 650 USD by year’s end,
with spot prices being significantly lower in
this segment, too.
Special technical and financial terms are marked at
their first occurrence in a chapter. They are explained in
the glossary starting on page 104. If you have any queries,
please do not hesitate to contact us at
welcome@andritz.com
Metsä-Botnia’s Fray Bentos mill in Uruguay is the
first pulp mill worldwide to have the entire process
equipment, maintenance concept, and maintenance
services provided by one supplier – ANDRITZ.