In fact, one western market analyst was concerned that prices for Northern Bleached Softwood Kraft pulp could weaken later in the year.

Momentum for further price increases in the North American market has slowed, the western market analyst said, and pulp markets need to keep moving in one direction or the other. Unless domestic demand rises, which seems unlikely, or export markets move higher, North American NBSK prices could soften, he said.

With a weak U.S. dollar, U.S. pulp could be seen as a bargain for foreign buyers, market analysts said. But there isn't enough of it to make much of a difference in world markets.

More than half of North American pulp capacity is in Canada, where the weaker U.S. dollar and stronger Canadian dollar have made it difficult for pulp firms to keep up, analysts said. Pulp is sold in U.S. dollars, but changes in exchange rates over the last two years have eaten up a large portion of price increases over the same timespan.

However, there is talk of more Canadian production coming out or at least changing hands, so prices could be supported, analysts said.

Meanwhile, prices continue strong in Europe and Asia, the analysts said.

The Eucalyptus market in Europe and Asia appear to be the strongest, and market analysts said price increases of $40 appear to be going through. Price increases for other pulp grades seem to be a harder sell, but producers likely will get most of it, the analysts said.

Finland's index provider, FOEX, this week reported that its U.S. price index for Northern Bleached Softwood Kraft pulp at a steady $880.00 a metric ton, unchanged from last week. The index quote is up $15.29 a ton for the year.

FOEX this week also reported its index for European NBSK pulp prices was up $3.74 from a week earlier at $895.63 a ton. The index quote is up $24.47 for the year.

Pulpandpaper.net reported NBSK as of April 1 in North America at $860 to $880 a ton, unchanged from a month earlier. In Europe, Pulpandpaper.net's price as of April 1 was $880 a ton, unchanged from a month earlier.

-By Lester Aldrich, Dow Jones Newswires; lester.aldrich@dowjones.com

(END) Dow Jones Newswires