MONTREAL–Canadian pulp producers are expected to benefit from a sustained improvement in the forestry product's pricing caused by the Chilean earthquake and a strike in Finland, analysts say.
Chile accounts for about 8 per cent of the world supply of pulp. Reports suggest that six of the South American country's pulp mills have been shut since the Feb. 27 earthquake.
The mills produce an estimated 3.8 million tonnes of pulp annually. The quake has removed 300,000 tonnes of monthly supply, or 7 per cent of the world's pulp production.
In Finland, a strike by port workers that started March 4 has cut off most exports and forced newsprint and pulp mills to close. The Nordic country exports about 1.5 million tonnes of pulp annually.
As a result, pulp prices have risen in the United States, Europe, and China and more are expected because suppliers have limited ability to build inventories before normal spring maintenance downtime. But newsprint prices are down after recovering in recent months.
Sourc:ethestar.com/
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