Feb 24, 2009. /Lesprom Network/. Buyers report that wood pulp prices have slid to levels last seen in late 2005, triggering a surge in production cutbacks across North America as suppliers look to prop up pulp prices, as the Purchasing informed Lesprom Network. Commodity economists say that high production costs, low selling prices and a tighter credit market are squeezing the finances of many pulp suppliers, which are reducing output in an effort to eliminate inventories in the face of slumping demand and price erosion. PPI Pulp & Paper Week reports that AbitibiBowater, Domtar, Terrace Bay Pulp and Sappi Fine Paper North America are among the latest producers taking downtime. In North America, the list price for Northern bleached softwood kraft (NBSK) has slipped to $675 per metric ton but the spot-market sales price is an even lower $605, down from $705 in January. The transaction price for Northern bleached hardwood kraft (NBHK) this month is $550 per metric ton, down from $615 in January. PPI Pulp & Paper Week reports that many industry contacts believe U.S. spot prices are approaching a bottom. Jimmy Lee, President of global pulp supplier Mercer International Inc. says in an earning report statement that “with pulp market conditions at historically depressed levels…a rebalancing of supply and demand is essential to a market turn-around. However, before such a rebalancing can occur, we expect that there will be further closures of and downtime at high cost mills."