NYBOT senior vice president Joseph O'Neill said the purpose of the exchange would be to provide a centralised and independent marketplace for pulp, which would provide a clear and transparent price indication.
He added that pulp would fit perfectly with the agricultural products that the exchange already trades.
Each contract traded will have a value of 20 air-dry metric tonnes of Northern Bleached Softwood Kraft (NBSK) pulp.
Buyers will trade to find the best price for pulp from a variety of manufacturers who have signed up to deal on the exchange.
So far, Swedish pulp producer Sdra Cell and German producer Eckardt are among those who have signed up for the exchange.
The exchange will commence trading in January or February next year, with trading from 8am to 9.45am each day on NYBOT.
Story by Andy Scott
Pulp to be traded at NYBOT from 2005
European and North American Paper manufacturers will soon be able to buy pulp in the form of futures trading, at the New York Board of Trade (NYBOT) from early next year.
