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> On top of that, many companies, especially in China, play “the inventory game,” McClay adds. They buy huge quantities of pulp on spot when prices are low — se
by Joker_vD 2y ago
> On top of that, many companies, especially in China, play “the inventory game,” McClay adds. They buy huge quantities of pulp on spot when prices are low — sending the price upward — and avoid buying at the higher rates, sending the price back down.
...shouldn't that, on the contrary, stabilise the prices? You know, with the buffers now in place?
- Danieru 2y agoIndeed, why are th western companies not themselves stocking up in gluts? Always buying at spot prices is rather unsophisticated behavior. I'd expect a mega corp to operate a team of experts to identify opportunities. Why are they instead taking the market price and leaving no buffer?