Chile quake may cut forestry pulp exports 15 pct-report
SANTIAGO, March 9 (Reuters) - Chile's key forestry sector may see exports fall by around 15 percent this year after a giant earthquake destroyed processing plants, an industry executive told the daily Diario Financiero.
Chilean earthquake could cause pulp supply crisis and escalating prices
The Chilean earthquake and resultant reduction in pulp supply comes at a time when pulp markets are already very tight with Chinese customers on allocation. The immediate impact is likely to be higher pulp prices leading to higher paper prices. NBSK pulp prices are already at US$890/tonne.
Fibre costs were 53% of the total pulp production costs
The largest cost component when manufacturing wood pulp is the cost of wood fiber. In the 1Q/09, this cost was 53% of the total production cost worldwide. Both the relative and nominal cost of wood have declined the past year; wood fiber costs in the 2Q/09 were at their lowest levels in over two years, according to the Wood Resource Quarterly.