"Chile Effect" on Pulp Markets Could Stretch to Six Months

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As detailed in a separate news item below, later this month Norske Skog will restart its Bio Bio newsprint mill in Chile, following the massive earthquake there in February. And as reported in previous OTW issues, the pulp industry in Chile is also expected to begin recovery and restart operations this month. Deutsche Bank Senior Analyst Mark Wilde reports that Deutsche Bank recently visited Chile's earthquake-rattled Concepción region. "We believe the 'Chile effect' on global pulp supply could easily stretch to six months," he reports, "and result in some 750,000 to 800,000 metric tons of lost production."