Paper Industry News
Chile earthquake to push paper prices up
Tuesday, 09, March 2010
Sappi (JSE:SAP) said on Friday the earthquake in Chile would put added pressure on the group and the European paper industry to raise prices.Aftershocks rattled south-central Chile on Friday, seven days after one of the strongest earthquakes on record ravaged the area, in a country whose pulp industry accounts for some 8% of world output.Finnish paper maker M-real said on Friday it would raise some paper prices due to a rise in pulp costs, partly caused by the earthquake as well as other factors, including a port strike in Finland.
Sappi, which has production operations in North America, Europe and Southern Africa and sells its products internationally, said local suppliers of pulp had informed the group that most mills would be out of action for at least one month due to extensive damage to Chile's infrastructure.The earthquake has interrupted power and water supply to many mills, and also affected wood and chemical supplies and the transport of finished product to customers.
