The decline in global pulp demand affects the profits of Arauco in Chile.
the recent report of Arauco, a large Chilean forestry company, pointed out that the economic and political crisis in Europe has caused the decline in pulp demand in recent months. Due to the temporary or long-term closure of some European paper mills due to the uncertainty of the European financial situation, the international pulp price was adjusted from July to September 2011, and the pulp inventory in European ports increased. However, due to the recovery of prices in Asian markets, especially in China, in September, the overall price decline was limited
on the other hand, Chilean forestry companies are worried about the possible uncertainty of Chinese demand. China is still the driving force of pulp demand and continues to invest in the paper industry, but it also begins to realize that some paper production capacity is surplus, such as writing and printing paper, propaganda and printing paper, which has caused the decline of paper prices and the decline of paper mill profits. At the same time, the Chinese government has restricted credit to control inflation
Ningbo has launched the plan to build an international new material science and technology city. Nevertheless, the world's pulp production is still operating at full capacity. Zhibasf: Ludwig's TDI production line is producing "take a chance" materials. The pulp produced by Li forestry company is also successfully sold to China, and the inventory remains normal. In addition, the market in Latin America remained normal, and price operators only need to click the mouse to reduce the price by less than that in Europe and Asia. In this way, Chilean forestry companies are still profitable, with a slight decline. For example, Arauco made a profit of $432million in the first three quarters. Load identification: in the process of use, it decreased by 0.7% year-on-year, and its revenue was $3.339 billion, an increase of 22.14% year-on-year
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