Fastmarkets and NOREXECO Introduce European Futures for Pulp Prices in Major Market Move
In a significant development for the European pulp market, Fastmarkets, a leading price reporting agency for commodities, and NOREXECO, a top exchange for pulp and paper, have announced the launch of two pioneering futures contracts based on spot pricing for Northern Bleached Softwood Kraft (NBSK) and Bleached Eucalyptus Kraft (BEK). This initiative comes in response to the shifting dynamics in market pricing for pulp and the rising need for more effective and transparent tools for price risk management.
This launch is a crucial milestone in the evolution of the European pulp sector. Previous European futures had been settled based on Fastmarkets' PIX benchmark indices, which reflected the gross price of the contracts. In contrast, these new contracts will display spot price levels, illustrating their growing importance as a vital reference point for industry stakeholders. They provide a novel and efficient means of managing price exposure with enhanced precision.
Matt Graves, Senior Vice President at Fastmarkets, states, "These new European futures contracts are set to revolutionize the market." He emphasizes that by closely aligning with net pricing dynamics, they offer market players a robust tool for more effective risk management and a better adaptation to evolving pricing trends. Additionally, he adds, "The introduction of these European spot prices expands Fastmarkets' extensive global coverage of net pulp pricing, complementing the existing pricing assessments for North America and China. This will provide the industry with a more comprehensive and transparent view of the global market, enabling more informed decision-making."
Stein Ole Larsen, CEO of NOREXECO, remarks, "The introduction of these new benchmarks will give the industry a vital tool for managing price risk, while spot pricing opens opportunities for traders and arbitrators, bringing essential liquidity to the market. Our experience with other commodity markets shows that the sector is keen to adopt relevant tools for price risk management."
Przemek Koralewski, Global Market Development Lead at Fastmarkets, adds, "We are thrilled to partner with NOREXECO to bring these innovative futures contracts to the European market. This launch directly addresses the market's need for more sophisticated risk management tools and highlights our commitment to providing solutions, in collaboration with our exchange partner, that meet the industry's changing needs. This marks a significant advancement for the sector."
This initiative builds on the successful partnership between Fastmarkets and NOREXECO, which already encompasses contracts for net pricing of NBSK and BHKP in China, along with recycled cardboard, all supported by Fastmarkets' market-leading pricing assessments.
For more information, you can reach out via email to [email protected] to connect with the team and learn how Fastmarkets can assist you.
Fastmarkets is a price reporting agency (PRA) and a leading provider of information for the agricultural, forestry products, metals, carbon, and energy transition-related commodities markets. It supplies customers with reference prices, raw material assessments, forecasts, analytics, news, and events. Its data is vital for those seeking to understand and forecast dynamic, sometimes opaque markets, facilitating transactions and risk management. Founded in 1865, Fastmarkets has built its success on the trust it earns and its deep market expertise, employing over 850 people across multiple locations globally, including the UK, USA, China, Singapore, Brazil, Bulgaria, Belgium, Ukraine, and Finland. Fastmarkets is a private company registered in the UK, owned by its shareholders and by Astorg, a European private equity firm.
NOREXECO operates as a regulated marketplace (exchange) for futures contracts tied to pulp and paper. The exchange is licensed by the Norwegian Ministry of Finance and is accessible from most regions worldwide. Since October 2018, NOREXECO has provided electronic trading based on the KB Tech Portal system, connecting multiple third-party systems. In collaboration with European Commodity Clearing (ECC), KB Tech Ltd, the Luxembourg-based central registry Regis-TR, and the market leader in index services Fastmarkets FOEX/RISI, NOREXECO offers a comprehensive structure for trading derivatives within a stock market framework that aligns seamlessly with the new regulatory regime sought globally.
This launch is a crucial milestone in the evolution of the European pulp sector. Previous European futures had been settled based on Fastmarkets' PIX benchmark indices, which reflected the gross price of the contracts. In contrast, these new contracts will display spot price levels, illustrating their growing importance as a vital reference point for industry stakeholders. They provide a novel and efficient means of managing price exposure with enhanced precision.
Matt Graves, Senior Vice President at Fastmarkets, states, "These new European futures contracts are set to revolutionize the market." He emphasizes that by closely aligning with net pricing dynamics, they offer market players a robust tool for more effective risk management and a better adaptation to evolving pricing trends. Additionally, he adds, "The introduction of these European spot prices expands Fastmarkets' extensive global coverage of net pulp pricing, complementing the existing pricing assessments for North America and China. This will provide the industry with a more comprehensive and transparent view of the global market, enabling more informed decision-making."
Stein Ole Larsen, CEO of NOREXECO, remarks, "The introduction of these new benchmarks will give the industry a vital tool for managing price risk, while spot pricing opens opportunities for traders and arbitrators, bringing essential liquidity to the market. Our experience with other commodity markets shows that the sector is keen to adopt relevant tools for price risk management."
Przemek Koralewski, Global Market Development Lead at Fastmarkets, adds, "We are thrilled to partner with NOREXECO to bring these innovative futures contracts to the European market. This launch directly addresses the market's need for more sophisticated risk management tools and highlights our commitment to providing solutions, in collaboration with our exchange partner, that meet the industry's changing needs. This marks a significant advancement for the sector."
This initiative builds on the successful partnership between Fastmarkets and NOREXECO, which already encompasses contracts for net pricing of NBSK and BHKP in China, along with recycled cardboard, all supported by Fastmarkets' market-leading pricing assessments.
For more information, you can reach out via email to [email protected] to connect with the team and learn how Fastmarkets can assist you.
About Fastmarkets
Fastmarkets is a price reporting agency (PRA) and a leading provider of information for the agricultural, forestry products, metals, carbon, and energy transition-related commodities markets. It supplies customers with reference prices, raw material assessments, forecasts, analytics, news, and events. Its data is vital for those seeking to understand and forecast dynamic, sometimes opaque markets, facilitating transactions and risk management. Founded in 1865, Fastmarkets has built its success on the trust it earns and its deep market expertise, employing over 850 people across multiple locations globally, including the UK, USA, China, Singapore, Brazil, Bulgaria, Belgium, Ukraine, and Finland. Fastmarkets is a private company registered in the UK, owned by its shareholders and by Astorg, a European private equity firm.
About NOREXECO
NOREXECO operates as a regulated marketplace (exchange) for futures contracts tied to pulp and paper. The exchange is licensed by the Norwegian Ministry of Finance and is accessible from most regions worldwide. Since October 2018, NOREXECO has provided electronic trading based on the KB Tech Portal system, connecting multiple third-party systems. In collaboration with European Commodity Clearing (ECC), KB Tech Ltd, the Luxembourg-based central registry Regis-TR, and the market leader in index services Fastmarkets FOEX/RISI, NOREXECO offers a comprehensive structure for trading derivatives within a stock market framework that aligns seamlessly with the new regulatory regime sought globally.
Topics Business Technology）
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