To help understand pulp price levels at any given time, indices that track price development are key tools for buyers and sellers alike. Their significance increases at a time of heightened market volatility. INDICES THAT FOLLOW THE PULP MARKET
MATTI REMES, photos MIKKO TIKKA, FOTONOKKA
Indices have long been used to monitor price movements in the pulp market. However, in recent months the market has been followed with particular interest. After a steady period lasting just over a year, early 2021 saw exceptionally strong growth in the price of pulp in China. Prices also began to rise in Europe. Fastmarkets FOEX PIX indices are most commonly used on the European pulp market. One monitors the prices of long-fibre pulp (Northern Bleached Softwood Kraft Pulp, NBSK) and the other short-fibre pulp (Bleached Hardwood Kraft Pulp, BHKP). There are also dedicated indices for the Chinese and North American markets. “The PIX indices are based on pricing data gathered from both buyers and sellers. Since we are an independent oper- ator in the pulp market we collect data from both parties”, explains Fastmarkets FOEX’s Director Lars Halén . The PIX indices are updated weekly. Fastmarkets FOEX does not provide exact figures on the matter, but according to Halén, price data representing by estimation roughly half or more of market pulp volumes in Europe is provided on a regular basis for calculation of the index. “Our sample size is large enough to calculate a com- prehensive and reliable index. In order to guarantee our impartiality, an external auditor regularly reviews the pro- cesses we use,” states Halén.
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