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Weak Pulp Markets Expected Short-term
Poor pulp markets are being blamed for Tembec decided to shutdown its pulp mill in Chetwynd as of mid September.
Are more Northern B.C. mills in jeopardy because of poor international markets?
Inudstry analyst Hakan Ekstrom says mills in Europe have suffered as of late as well thanks to the same combination of factors as those in North America, that being financial instability in Europe and Asian countries like China consuming less paper products.
He says mills everywhere are struggling to cut down on production costs until the market rebounds, hopefully next year.
"Assuming that the world economy will look a little bit better when we know more about what's going to happen in Europe, China might be a little bit more aggressive buying pulp and paper again next year," said Ekstrom.
Despite the challenges all mills are facing, Ekstrom says North America has a general advantage over Europe in terms of wood costs.
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