GLG News Analyses of the following article:
Earthquake in Chile shuts pulp capacity, likely to extend global pricing run
Published at: www.risiinfo.com
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Chilean earthquake could cause pulp supply crisis and escalating prices
March 2, 2010
The horrific earthquake in Chile has resulted in temporary shutdown of about 4.5 million metric tonnes/year of market pulp capacity. Information is scarce due to the loss of infrastructure and power. Arauco and CMPC have issued "force majeure" letters to their customers saying that they will not fulfill their commitments. Detailed structural analysis of the mill facilities will be needed to determine needed repairs and when production can be resumed.
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