<B>Weyerhaeuser Looking to Hike Pulp Prices in Europe</B>

Weyerhaeuser announced plans to increase the price of NBSK in Europe by $30 to over $710 a metric ton next month, sparking fear of further mill closures for European non-integrated mills.

So far this year, two European non-integrated mills, Colthrop and Frogmore, have said they would be forced to close, and Inveresk managing director Stefan Kay warned that mainland European mills could be next with further pulp price increases.

"Pulp producers are ramming price increases down our throats. NBSK is $670 but the spot market is $880. We are paying through the nose," he said.

One European pulp supplier said he would like pulp prices to "stand still", for the next six months due to volatility in the currency market. "In the U.S. the $30 increase represents 5 percent which will stay at 5 percent. But in Europe a $30 rise is 8 percent that could develop into 11%, he said.