Lordo, now that long term wood chip contracts with Japan are history (a bit like iron ore in that respect), then immediate supply and demand forces are coming into play. If Japanese pulp (and paper) mills need to replace a large amount of lost inventory (chips and paper), then I'd imagine GNS are, for the first time in a long time, back in the drivers seat. They should be able to extract a better spot price, and consequently better EBIT, for a while. That will also make the Chinese compete harder for their shipments as well. GNS must have wood to sell - with the GFC slump, they appear to have been under-cutting hardwood plantations in recent times.
GNS Price at posting:
49.0¢ Sentiment: None Disclosure: Not Held
