Strong demand for cellulose and paper derivatives expected for several years – MercoPress

High Demand for Cellulose and Paper Derivatives for Several Years

] The positive outlook for the market has been decisive for the Copec group's forestry subsidiary, which has decided to go ahead with the biggest investment in its history, said Kimber

. Cellulose seems solid in the second half of the year, mainly because of the strength of the paper derivatives sector, which would help maintain high commodity prices, said Wednesday a senior executive of the Chilean company Arauco

. The positive outlook for the market has been decisive for the forestry subsidiary of the Empresas Copec group, which has decided to pursue the largest investment in its history, according to Charles Kimber, director of commercial and commercial affairs of Arauco

. and we see a good medium-term horizon, product of good demand in developed and developing countries for paper products, which is what cellulose pulls, "explained the executive.

Green light for the modernization and expansion project of the Arauco (MAPA) plant in southern Chile, an initiative which will require an investment of US $ 2,350 million and which should be in service by 2021.

Respect Regarding MAPA funding, Kimber explained that high pulp prices reinforce the company's liquidity, which would make the company's cash flow worse. unnecessary debt issue in the first phase.

"The flows will be needed later, not now in the short term.It will take 30 months to build (…) and we have a good box, so we do not have to leave the market in a hurry. .

Arauco, one of the largest pulp producers in the world, earned a profit of nearly $ 200 million in the first quarter, after the average value of raw materials soared 42% year-on-year.

Currently, the pulp catalog prices are about US $ 1,200 per tonne, a level that could be maintained in the medium term since there is no such thing. other major projects for years to come in the world and that demand from China, the largest consumer of raw materials, remains strong, said Kimber

. By 2021, badysts are keeping a glimpse of an extended cycle of high pulp prices at least until 2020, given an expected supply gap.

"The main risk factor for our positive view is the rate of growth of cellulose demand, as price sensitivity arises," said Banchile earlier in a report.