Mixed 2013 market outlook for Latin American companies
Market fundaments for pulp producers are expected to be weak in 2013, according to a new report by Fitch Ratings. According to Joe Bormann, Managing Director and lead author of the report, 'Pulp prices should remain under pressure due to growth of global market pulp capacity by about 8% over a 12 months period, while demand growth should remain around 2%. For pulp producers in Latin America, free cash flow should show improvements vis-a-vis 2012, but remain negative. Capital expenses should begin to taper off after reaching high levels during 2012. Acquisitions should also decline, as companies continue to seek to improve the strength of their balance sheets.'
