PAPER & PULP

Paper plays a key role in our daily life. Papers are made with the pulp of wood, which is an Eco-friendly product. Much like the iron ore market in the 2000s, the current paper market had traditionally been longer term contracts which has moved more recently towards more spot business. This spot business therefore requires the ability to hedge exposure, and the time is ripe for developing the futures market.

With an increasing move towards spot business and diminishing long term contracts, companies are exposed to adverse price movements. FIS has therefore partnered with NOREXECO and Fastmarkets to further develop the pulp futures markets to give companies the ability to hedge future exposure, as well as others to trade a growing commodity market.

The global efforts towards decarbonisation and ESG initiatives has spurred the interest for sustainable commodities and pulp provides an easy avenue into investing in green commodities. We broke all the listed NOREXECO contracts on both European and Chinese softwood and hardwood pulp contracts.

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