GNS 0.00% 16.0¢ gunns limited

pulp market opportunity

  1. 1,217 Posts.
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    Noted the following news item from a major forestry co based in northern hemisphere:

    "Ilim Group ships over 1 million tons to China
    St. Petersburg 25 december
    Ilim Group sets another record in pulp and board shipments to China: this year the Companys locations, the Bratsk and Ust-Ilimsk Branches, have already shipped more than 1 million tons of products to the Chinese partners.

    The Company has been in the Chinese market for nearly ten years, steadily increasing its sales. Over the past years, the Company's annual pulp and board shipments amounted to approximately 900,000 tons. This year the Group passed the 1-million mark for the first time.

    Shipments to China will continue to hold an important place in the Companys business in the future: China is one of the priority markets for Ilim Group. According to Mr. Paul Herbert, the Company's CEO, Ilim Group intends to remain the leading supplier of pulp and paper products to the Chinese market, continuously increasing its presence there."

    Now we read of the Tassie Gvt closing / assisting on a deal with china, for a 800,000 ton order of chips.
    May this be the catalyst - and connection - to increase the future order to pulp?

    Another interesting article from Sodra:

    "Sodra announce price increase for hardwood pulp Pressrelease: 2010-01-22
    Sodra announce price increase for hardwood pulp
    Pulp market remains solid with low stocks and good market balance. Accordingly Sodra today announce USD 30 per tonne price increase for hardwood pulp. New price valid from February 1st is USD 760 per tonne."

    Wow. So if the 800k deal is in chips, i read (earlier in a dif report) an assumption that some $32mil is achieved.
    However, if it's pulp, 800k at $760 is some $608mil (U.S.). Surely this must be the answer to those wondering if support for gunns mill project is warranted.

    But as usual, dyor. Be glad to be correct ~ oh sorry, to be corrected :)

    Cheers :)

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