Hasan welcomes falling pulp prices<\/p>\n
JAKARTA (JP): Falling pulp prices on the world market benefit
\nIndonesian pulp producers, chairman of the Indonesian Forestry
\nSociety, Bob Hasan, said yesterday.<\/p>\n
\"The drop in pulp prices is advantageous for us, not only
\nbecause we can profit from lower prices but also because the
\nprice fall could lead to the collapse of overseas pulp
\nproducers,\" he said.<\/p>\n
Pulp prices dropped to their lowest level early this month to
\napproximately US$500 a ton, down from a range between $900 and
\n$1,000 a few months ago because of increasing supplies from sub-
\ntropical countries such as Canada, the United States and European
\ncountries.<\/p>\n
Bob said the price reduction did not hurt Indonesian pulp
\nproducers because their production costs were much lower than
\nthose of companies in sub-tropical countries.<\/p>\n
He said the current price of around $500 a ton was far lower
\nthan the average costs for producing pulp in the United States,
\nEurope and Canada.<\/p>\n
\"The production costs in those countries are around $600 for a
\nton of pulp. Based on current prices, those producers suffer a
\nloss of around $100 a ton,\" he said, adding that if no efforts
\nwere made to reduce the world's pulp stockpile, many pulp
\nproducers, especially those in industrialized companies, would
\ncollapse.<\/p>\n
The production costs of Indonesian pulp makers are lower
\nbecause Indonesian trees can grow suitably in around eight years
\ncompared with more than 80 years for trees in temperate climates.<\/p>\n
He suggested that Indonesian companies export pulp not paper,
\nreasoning that if they exported both they may be labeled \"too
\naggressive\" by overseas producers.<\/p>\n
\"As a consequence, overseas producers would consider us not
\nmerely as a rival but as an enemy,\" he said, adding that if
\nIndonesian companies wanted to sell paper products overseas, they
\nshould sell through foreign agents. (hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/hasan-welcomes-falling-pulp-prices-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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