> 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?
Indeed, 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?
...shouldn't that, on the contrary, stabilise the prices? You know, with the buffers now in place?