Pulp futures debuted on the New York Stock Exchange recently, pulp futures contracts were traded on the New York Stock Exchange (NYBOT) for the first time. The benchmark northern bleached coniferous kraft pulp (NBSK) shipped in April opened at $550/ton. 90 minutes after trading on the cotton exchange of the New York Stock Exchange, pulp futures closed with a total of 312 contracts, totaling 6240 tons. When the transaction was carried out in New York City, the director of the exchange said that because there were more European dealers participating, the price also more reflected the level of Europe, in part because the net price there was lower than that in the United States
physical delivery traded on the New York stock exchange can be shipped to the warehouse in Green Bay, Wisconsin, but the price is also effective in some specific places in Europe. Because the net price in Europe is usually lower and priced on CIF basis. Industry insiders believe that there will be more physical transactions in the European continent than in the United States. This view has also been recognized by officials of the New York Stock Exchange. Suda is the main supplier of pulp to the New York Stock Exchange among European manufacturers
Eric Maine, manager of market development at the New York Stock Exchange, explained why Europe was active in this area. He said: "the cost of shipping in Sweden is lower than that of pulling to the Green Bay by train. The price reflects the situation in Europe, and reaching the Green Bay at this price may not be an economic alternative."
nevertheless, Maine said that the establishment of a warehouse in Green Bay would enable buyers and sellers in North America to join a physical market. He added: "this is one of the key differences between our futures trading on the London om exchange and that of pulpex." Recently, North American manufacturers are not willing to operate more quantities because of the high price at this stage. The effective announcement price reaches 680 US dollars/ton, and the net shipping price of spot goods in the eastern and Midwest United States is US dollars/ton. Industry insiders said that if the market declines and spot prices plunge, more pulp produced in North America will enter the exchange as manufacturers try to ship their products steadily
Maine pointed out that Canadian manufacturers Jiafu company and Owen forest products company, as well as some southern American bleached coniferous kraft pulp manufacturers and overseas radiata pine pulp manufacturers will supply pulp. The trade of both kinds of pulp adopts the way of discount to northern bleached coniferous kraft pulp. At present, the New York Stock Exchange has several North American manufacturers participating in the Advisory Committee, and the exchange has negotiated with Kimberly Clark and P & G. These are the two companies with the largest purchase volume in the open market in North America. In addition, insiders of cork cellulose also told pulp and paper weekly that the company would trade on the New York Stock Exchange
Maine said, "when we decide to open up new futures contracts, we rely very much on the industry that wants to trade futures and come to us to start operations. We work with them to develop a contract that reflects their needs. We have organized an advisory committee for each variety, so participants come from all stakeholders. Buffer oil should be kept clean."
there are signs that there will be more trading volume than the previous futures market in the pulp and paper industry. Maine said that people are now more interested in over-the-counter trading (OTC) and risk management. Pulp is listed on the New York Stock Exchange for the first time, which is also the result of the record number of other commodities on the exchange. These commodities include cocoa, coffee, cotton, alcohol, orange juice and sugar, as well as currency and index futures options
in 2004, the number of other commodities traded on the New York Stock Exchange increased by 30% over a year ago, with more than 30million futures and option contracts Jinan assay technical requirements. Maine estimates that the number of transactions recorded this year will reach 35million to 38million contracts. He said, "our goal this year is to set a new record in the number of contracts, and our interest is unprecedented. Now is the best time for us to engage in new varieties such as pulp."
although the New York Stock Exchange will only deal in needle 1 and first connect the power supply of leaf kraft pulp, officials said that they had discussed with manufacturers about leaf kraft pulp, such as eucalyptus pulp. However, Maine pointed out that "eucalyptus pulp has a huge fundamental risk". At present, there are no plans to expand to broad-leaved pulp or add warehouses in Latin America. The New York Stock Exchange also actively discussed increasing the shipment volume of northern bleached coniferous kraft pulp, including shipping to a destination in Asia. However, these discussions are still in the preliminary stage
in addition, the New York exchange, coupled with excellent after-sales and quality assurance services, is seeking to take old cardboard (OCC) as the second commodity to enter the exchange in the pulp and paper industry, which is the largest variety of waste paper sold to paper mills. However, Maine said that there was no timetable for adding other commodities except pulp. He said, "OCC is a relatively distant thing. We haven't discussed its contract terms and other issues. The biggest problem of used cardboard is how to standardize products. For pulp, you can have a standard moisture content, but for used cardboard, you don't. then how do you measure a large number of used cardboard? At present, people haven't found a widely accepted specification standard