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Canfor bullish

Canfor Pulp expects its markets to remain strong through the beginning of this year as it finished 2009 in the black. Canfor Pulp posted net income of $15.2 million in the last three months of 2009, and generated adjusted distributable cash of $22.

Canfor Pulp expects its markets to remain strong through the beginning of this year as it finished 2009 in the black.

Canfor Pulp posted net income of $15.2 million in the last three months of 2009, and generated adjusted distributable cash of $22.3 million. Canfor Pulp finished the year with net income of $13.4 million and distributable cash of $30.5 million.

Steady pulp demand and continuation of supply reductions maintained world inventories of pulp at historic low levels throughout the fourth quarter of 2009, noted the company.

The tight markets allowed further price increases in the quarter. Northern Bleached Softwood Kraft pulp American list prices were $770 US per tonne in September, rising to $830 in December.

Announced prices for January have hit $850, and for February $880.

Mitigating the impact of stronger global pulp markets for Canadian producers was the four-per-cent increase in the quarter in the average value of the Canadian dollar in relation to the US dollar, noted the company.

Canfor Pulp is planning an aggressive program to spend its $122 million in federal green subsidies, plus additional company money, to reduce the environmental impact of its Prince George mills.

Canfor Pulp's three mills in Prince George employ about 1,100 people.


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