PIX pulp indicesBy Lars Lars Halén, senior manager, FOEX Indexes and Timo Teras, managing director, FOEX Indexes

 NBSK pulp Europe

Data over the producers’ pulp stocks was released by PPPC at the end of July with inventories up by one day during a month when they typically go marginally down. Market pulp deliveries were actually quite good, up by almost 6% against June 2012. In market BSKP, the increase was more modest, a shade over 3.5%. Shipments were satisfactory but production was up and clearly at a higher capacity than a year ago, hence the small increase in inventories. Shipments to Europe in July slowed down by 3.2% from a year ago, although they were still up by 1.6% over the first half of 2012. The increase in producer stocks mounted the downside pressures on prices but improving total shipments and the weakening of the dollar supports producers in their efforts  to hold the present price levels. The jury is out on the final impact of the different drivers. Euro strengthened again against the USD from the previous week, this time by 1.0%. Our PIX NBSK index moved up by 18 cents, or by 0.02%, and closed at 860.24 USD/tonne. When converting into Euro, the weakening of the dollar led the index in EUR to a retreat by 6.63 EUR, or by 1.01%. The PIX in EUR closed at 648.75 EUR/tonne.

BHK pulp Europe

Most of the 200,000 tonne gain in total market pulp shipments in June came from hardwood grade, which showed a nearly 9% increase in June year on year, and now over 3% growth during the 1st half against January-June 2012. Shipments were strong, finally, to China as well as  other Asian countries. BHKP producer stocks remain slightly above average however, even taking into account the structural changes seen over the recent years in market BHKP supply. At the end of June, BHKP producer stocks stood at 40 days without seasonal adjustment and at 42 days with the seasonal adjustment factor included. Both were unchanged from one year ago but the May number was revised up by one day. The price pressures downwards are on but strongly resisted by the producers. Euro strengthened by 1.0% against the USD from the previous week. With the pressure from the stronger Euro, the PIX BHKP index value in Euro decreased by 7.56 EUR, or by 1.23%, and closed at 607.03 EUR/tonne. The PIX BHKP index value in USD retreated by 1.61 USD, or by 0.20%, and settled at 804.92 USD/tonne.


lars & timo


FOEX Indexes Ltd produces audited and trademarked registered PIX price indices for certain pulp, paper, tissue, packaging board, recovered paper and wood based bioenergy/biomass grades. The PIX price indices function as independent market reference prices and show the price trend of the products in question. FOEX sells the right to use the PIX indices for commercial purposes as well as weekly or monthly newsletters, a monthly market review and the PIX index histories.

Providing PIX pulp price indices to the tissue industry gives the paper producer and buyer insight in the price trends with a weekly frequency. This way companies have better tools to budget their cost or income structure and profitability, and may concentrate on their core businesses with less time spent on price negotiations.

Any commercial use requires permission with terms of use from FOEX Indexes Ltd. (www.foex.fi)



PIX values, $ or € / metric tonne