Sunday, March 14, 2010

Sustainable forestry

A nice video by a US paper mill, Georgia Pacific, about responsible management of the forest.

Saturday, March 13, 2010

Earthquakes put pressure on pulp supply

The 8.8-magnitude earthquake in Chile on feb27 and 6.4-magnitude earthquake in southern Taiwan on Mar 4 have caused a tighter supply of pulp. Arauca, the second largest pulp producer in the world with a 3 million tonnes /year capacity has stopped all its mills in Chile after the quake and the tsunami that followed.

On the other hand , the tremor in Taiwan caused minor damage to Taiwan Pulp & Paper Industry in Hsinying City, in Tainan county. The mill is expected to resume production within march.

The Chilean reduction of pulp supply , it is feared , might cause an increase in paper prices.

Wednesday, February 3, 2010

China pushes pulp prices up

Limited stocks and increased demand from China is fueling pulp prices hike. Fearful of shrinking
supply Chinese buyers are intensely snapping up pulp ,creating another round of price increase in pulp. February shipments of pulp to China see a $30 or more pmt for BSK [bleached softwood kraft] and unbleached BSK going for an increase of $10 or more.

An idea of the high demand in China can be seen in the following comparison. In 2009 consumption of pulp in China was 13.7 million tonnes compared to a 9.5 million tonnes in 2008. That is more than 40% increase!. The weak demand from the struggling economy of N. America and Europe was completely overshadowed by the ferocious appetite of Chinese buyers. Many big mills in China are stocking up in anticipation of many new machines coming online this year.

What are the implications for us paper buyers? Expect more price increases in the near future.

Let us hope our economy move in the same direction

Monday, January 11, 2010

World wide stocks tumble

World wide stocks of softwood and hardwood are unusually low in Nov.2009 causing some mills to hike prices or reduce supply. January 2010 will see more pulp price hikes.
World wide shipments to China remain strong . In fact on year to year comparison, shipments in tonnage to China is more than 25% higher in 2009.

There are some who believe that China will slow down on import purchases , as the increasing higher prices are deterring Chinese buyers to keep high stocks. Then also the local Chinese mills are dropping prices. Another reason is that the Chinese are worried that soon "what goes up must come down."