<B>Sharp Norscan Drop Stirs Pulp Price Rise Fears </B>

Norscan pulp producer inventory figures took an unexpectedly sharp drop in June. A fall was anticipated but the level of it took the industry by surprise, according to a report by Print Week.

This means it will be hard to resist the pressure to push prices up again in the fourth quarter.

The most troubled group in the industry remains the non-integrated paper producers, and industry observers predict reports of receiverships among the non-integrated players.

Pulp suppliers are also concerned about the fall in Russian pulp prices, fearing it will give the wrong impression about the market.

Russian pulp prices, which make up the backbone of the spot market, are reported to have been knocked off their $800-plus per tonne pedestal. The fall stems partly from a severe cutback in demand from China, where integrated operations have become more self-sufficient in pulp.