Monday, July 18, 2005

Pulp Pricing

Domestic prices appear largely stable in July. Prices continue to
edge lower in Asia, the world's leading spot market. However, after
months of erosion, we wonder whether we are close to the bottom.
Anemic demand is being partially offset by supply coming out of the
system. Arauco's big new Valdivia mill is out indefinitely, and
Domtar has shuttered its Quebec mill.

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