Indonesia may have a blitz of illegal logging to contend with if China is unable to find other sources of wood supp…
Indonesia may have a blitz of illegal logging to contend with if China is unable to find other sources of wood supply to feed its hungry pulp mills, reported Yahoo’s Asia News.
World Markets managing director Don Roberts from the Canadian Imperial Bank of Commerce confirmed domestic plantations will be unable to meet the demand from China’s rapidly expanding pulp and paper mills for the next 10-15 years. "These pulp mills are starting up without supplies to run them," he said. "China’s demand will give an incentive for fibre exports from Indonesia into China that perhaps aren’t from sustainable sources."
China relies almost entirely on Malaysia, Russia, Burma, Indonesia and Gabon to meet its wood supply needs. However, with paper output growing 21% on-year from January to July, and paperboard production increasing 25% in the same period, resources are wearing thin. Indonesia’s forests are already bereaved from decades of illegal logging and in the absence of strict controls, run the risk of losing at the hands of China’s need for raw materials.
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