Exports of pulp from Indonesia should gain momentum in coming months

Exports of pulp from Indonesia should gain momentum in coming months, adding further instability to the market. The increased supply of raw materials from Indonesia, mainly to Chinese customers, due to local government approval for the planting of forests in new areas,  can lead to higher capacity utilization of factories. There is a new factory, in Kerinci (Sumatra), which should start producing 850 000 tones.
"This increase in the supply of fiber to China could lead to a temporary excess, which will be resolved with the start-up of new paper mills in China." said analyst Marcelo Aguiar Vice President, Mining & Steel and Pulp & Paperl Goldman, Sachs & Co.to Valoronline