15 March 2010

CHILE’S WOOD, PULP PRODUCERS HIT HARD BY QUAKE, SHORTAGES TO FOLLOW

The 8.8 magnitude earthquake that rocked south-central Chile on Feb. 27 has taken a heavy toll on that country's forestry sector

Jose Campino, the president of timber company Corma predicted that exports could fall by about 15 percent this year as a result of heavy damage to manufacturing facilities.

"The forestry sector is in the epicenter of the earthquake," Campino was quoted as saying.

He said exports could drop to $4.2 billion this year from about the $4.9 billion that had been projected before the quake hit.

According to a Reuters news report, Chile accounts for around 9 percent of the world's wood pulp and the disruption of wood processing will likely push global paper prices up as wood supplies tighten.

A number of pulp producers in Chile have had to halt operations in March and are not sure when their mills will come back on-stream.