OTCPK:TOUBF - Post by User
Comment by
HippygirL74on Nov 15, 2008 10:04am
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Post# 15588475
RE: RE: Russia Cools the Outlook of TRE
RE: RE: Russia Cools the Outlook of TREquote:
How can "Russia Cool the outlook of TRE" when all TRE's plantations are in China and China buys all of its output? i.e., TRE is a Canadian company but all of its tree plantations are in China.
PS: Regardless of the world's present economic failure, China is still short of trees and is encouraging more plantations. (I know because I am here doing research to start one.) - jlee123
China imports a lot of trees from Russia. And i mean a lot. China has built roads and railway lines to Russia for this purpose alone. If Russia imposed an 80% tax on all round logs, exports from Russia would come to an end as companies find wood from other places like Canada, South America, USA, New Zealand, etc.... Prices would increase greatly for all round wood. As a result, Sinoforest would benefit tremendously from the higher prices.
Since the 80% tax is now postponed by 9 -12 months, or longer, prices for round logs will remain the same, or possibly go down at least temporarily as there must be stockpiles somewhere. That's why "Russia cools outlook on TRE."