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Presentation of Outline

Purpose of study1. Generalbackground : Due to increasing consumption for market pulp and lack of sufficient forest resources in China, local pulp producers are hard to meet large demands of local paper mills for pulp consumption. Therefore, most of pulp consumed only to depend on impo

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Presentation of Outline

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    1. Presentation of Outline Molly Wei Zhou Nov,21

    2. Purpose of study 1. General�background : Due to increasing consumption for market pulp and lack of sufficient forest resources in China, local pulp producers are hard to meet large demands of local paper mills for pulp consumption. Therefore, most of pulp consumed only to depend on import from overseas. 2. Need of study: Find an effective way to avoid unwanted price risks and keep stable demand-supply of imported paper pulp.

    3. Thesis statement: China should establish future market of pulp, because unwanted huge risks behind spot transactions of imported paper pulp seriously effects to maintain healthy and sustainable growth of local paper industry.

    4. The Realistic Necessity of Establishment of (Paper) Pulp Future Market in China I. Introduction In recent years, Chinese paper makers have been leading a hard life due to cost and supply of imported pulp through spot transactions . .

    5. II. Body 1.Weakness in spot transactions bring more and more risks to whole China�s paper industry. (1)Most of pulp consumed are only imported from outside China. A. Local pulp producers can�t satisfy huge demands for pulp (structure of raw material in China) B. Lack of sufficient forest recourses only supply a little amount of total consumption. (2)Unwanted risks behind spot transactions of market pulp get huger. A. Supply of imported pulp has become unstable and tighter. (foreign pulp maker shut down: environment, cost of production) B. Spot price of imported pulp has been going up sharply. (supply of other raw materials down, noticeable increase in pulp demand) (3)Chinese paper mills easily lose their competition advantages in Chinese market if they continue to doing spot transactions of pulp. (price advantage, location advantage) 2.Exsiting foreign future price of market pulp has remarkable effects on spot price of market pulp. (mechanism, extent)

    6. III Conclusion 1.It�s necessary for China to launch pulp future to provide local paper industry with a tool to avoids risks and get stable supply of pulp. 2.China as a main consumer of market pulp should take an active part in global pricing via future market.

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