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Non-Tech : Weyerhaeuser forest/wood products/real estate -- Ignore unavailable to you. Want to Upgrade?

To: dgz who wrote (11)	8/11/1999 9:32:00 AM
From: Edwarda	Read Replies (1) \| Respond to of 41

I agree on the subject of pulp prices--up to a point. Are you sure that your outlook isn't being overly affected by your location? Admittedly, list prices for NBSK pulp in Canada were down to about $522 per metric ton in the second quarter, reflecting clear oversupply. However, did you catch last week's announcements of price increases effective September 1? On Friday both Weyerhaeuser and Sodrä Cell announced price increases on NBSK, citing increased demand; the new prices are up $30 per metric ton in the U.S. and $40 in Europe. Keep in mind that Weyerhaeuser is the world's largest producer of market pulp and that Sodrä is one of the largest producers of NBSK, so these announcements carry particular weight. Even SBHK pricing seems to be strengthening, in light of the recent price hikes by Parsons & Whittemore and by Smurfit-Stone. Although Norscan stocks are not as low as one might desire, they are expected to remain under the 1.5 million metric tons necessary to support producer pricing power. One has to go back five years to find a better third-quarter market outlook than we have at the moment.