Pulp Friday: Hardwood PIX Down Another ~$13/t

Research evidence excerpt

Pulp Friday: Hardwood PIX Down Another ~$13/t

Rodolfo Angele, CFA AC Latin America Equity Research

(55-11) 4950-3888 24 July 2026 J P M O R G A N

rodolfo.r.angele@jpmorgan.com

in China’s BHK resale market following a period of reduced import volumes.

China pulp surplus stalls BSK price increase while BHK buyers await OKI supply.

China’s pulp market remains under pressure from a persistent supply surplus, keeping

bleached softwood kraft (BSK) prices flat despite attempts by some suppliers to raise them.

Resale prices for BSK have dropped, and buyers are favoring resale over imports, while

robust demand allowed a modest price increase for unbleached softwood kraft (USK). In

contrast, Brazilian producers cut bleached hardwood kraft (BHK) prices by $20 per tonne,

but demand remains subdued as buyers await clarity on future supply from APP Group’s

upcoming OKI expansion, which is expected to further impact the market.

Brazilian tissue converter Bela Toalha to expand capacity to 18,000 tpy, targets

premium market. Brazilian tissue converter Bela Toalha is investing 2 million Reais to add

a third converting line, aiming to boost its annual capacity from 14,400 to 18,000 tonnes by

December 2026. The expansion supports a strategic shift toward premium, higher-value

institutional tissue products, especially two-ply grades for clients like hospitals and hotels.

Bela Toalha’s portfolio is evenly split between virgin and recycled fiber, and the company

plans to ramp up production gradually in line with market demand.

European PIX pulp price indices remain near previous week's levels. European PIX pulp

price indices remained largely stable for the week ending July 21, 2026, with only minimal

declines in both softwood and hardwood kraft pulp prices. The euro’s slight strengthening