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Though, it is expected to pick up with demand increasing in the emerging economies such as China. The pulp producers have been known for controlling inventories releasing products to marketplace at a targeted price. But the overall market trend is changing from a supply driven market to a demand driven market. The Chilean government and free trade agreements with US and EU are favorable factors for the forestry and pulp industry. Use of genetics, pest control, weed protection, disease control, forest management has all lead to improve the quality and life of plantations.
Industry attractiveness and New Entrants threat (See Exhibit 2)
The Pulp industry is very attractive as some companies realize close to 30% profit margins...
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