OREANDA-NEWS. Fitch Ratings has published a new report on the 2016 outlook for Latin American pulp, paper and forest products.

Fitch expects pulp prices to continue to follow the supply and demand imbalance and remain pressured by oversupply. Growth of Chinese demand, recovery of U.S. and European markets and plant closures will be key drivers for pulp prices in 2016. Fitch believes market pulp is already close to marginal cost and will continue to force plant closures of high-cost producers in the Northern Hemisphere. Weaker currencies will continue to benefit Brazilian and Chilean pulp producers.