Global pulp prices have fallen steadily since late 2022, when they reached record highs. The most significant decline has been for hardwood pulp, traded at a substantial discount to softwood pulp. Global pulp inventories were down during the summer, and there were signs that the market tightened, and pulp producers were starting to see opportunities to move prices upward in the fourth quarter of 2023 following almost 12 months of declining pulp prices.
Despite declines in pulp prices over the past year, wood fiber costs have not experienced the same downward trend. On the contrary, tighter residual supply resulting from lower lumber production has kept wood chip prices high in many markets.