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					 How Brokerage Creates
Value for Buyer and Sellers
           Part 1

What does the landscape look
            like?
Global Tissue Use
US Deinking High Grades Export Destinations – 2008

         (Source – US Bureau of Census/Dept. of Commerce)


                        4%


           23%                                         Mexico
                                           34%
                                                       China
                                                       Canada
                                                       India
                                                       Korea
         4%                                            Other
                                                       Philippines

            12%
                                     13%
                       10%
  Deink Exports
27% Latin America
   16% Mexico
US Pulp Sub Export
   17% Mexico
20% Latin America
           Major Deink Buyers
•   Mexico
•   China
•   India
•   Korea
•   Philippines
•   Venezuela
•   Chile
•   El Salvador
•   Columbia
       7% increase
in deink demand in Mexico
                     Supply Thoughts
Year          Total US P/W Available   P/W Recovery   Total US P/W
                                          Rate %       Recovery

       2008          28,142                57          15,976
       2007          31,059                54          16,618
       2006          32,398                48          15,696
       2005          32,020                44          14,135
       2004          32,711                43          13,940
       2003          31,010                41          12,560
       2002          30,944                38          11,765
       2001          30,383                40          12,030
       2000          33,078                42          13,910
       1999          32,616                39          12,695
       1998          31,384                38          11,825
Recovery of Printing Writing
         Papers
              30,000                                                                     100%

                                                                                         90%
              25,000
                                                                                         80%

                                                                                         70%
              20,000
                                                                                         60%
  1,000 tpy




              15,000                                                                     50%

                                                                                         40%
              10,000
                                                                                         30%

                                                                                         20%
               5,000
                                                                                         10%

                  0                                                                      0%
                       1997 1998 1999 2000   2001 2002 2003 2004   2005 2006 2007 2008

source: AF&PA and Moore & Associates    Recovered    Unrecovered    Rate
   Over 50% of Deink Demand for
Fast Growing Eucalyptus Pulp………

              Tissue
     A Few More Thoughts

• PW supply in the US shrinking
• Global demand for deink ink
  increasing
• Shredding – growth market?
• Movement away from paper
            Part 2

What Is Different About Selling
      in Latin America?
Paperwork
Managing Risk
           Buying Practices
• Price versus consistency
• Language
• Culture
• Ability to handle logistics and
  documentation
• Quality and claims
Logistics can
be
complicated!
Collecting Your
    Money
          Part 3

How Do Brokers Create Value
  for Buyers and Sellers?
           For Foreign Buyers
• Consolidate many sources
• Bridge language and cultural barriers
• Assist with financing
• Create liquidity in the market
• Manage quality
• Manage logistics and export documentation
• Minimize pricing by shifting ship points
              For US Sellers
•   Make logistics easier
•   Manage credit
•   Bridge cultural and language barriers
•   Assist in quality
•   Maximize pricing by shifting markets

				
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posted:8/29/2011
language:English
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