thank you  :)

-----Original Message-----
From: Kanji, Ayesha 
Sent: Friday, October 12, 2001 9:11 AM
To: Causholli, Monika
Subject: FW: Market Pulp -- Inv's See Huge Drop; NORSCAN Nearing "Magic"
Level




-----Original Message-----
From: Dillon, C A [EQRE] [mailto:c.a.dillon@ssmb.com]
Sent: Thursday, October 11, 2001 2:34 PM
Subject: PFP: Market Pulp -- Inv's See Huge Drop; NORSCAN Nearing
"Magic" Level



Chip Dillon
Managing Director
Salomon Smith Barney
388 Greenwich Street -- 28th Floor
New York, NY 10013  USA
Phone: 1-212-816-2793
Fax (US): 1-800-380-6401
Fax (International) 1-212-816-1090
Email: c.a.dillon@ssmb.com

*	For the fifth consecutive month, preliminary data indicates that
market pulp inventories in the NORSCAN region saw a greater-than-historical
average decline of 195,000 tonnes in September (avg decline in Sept. is 108K
tonnes). 
*	As a result of this greater-than-normal decline, total inventories
now stand at 1.525 million tonnes -- nearing the 1.5 million tonne
historical inflection level, and down 24% from the Feb '01 level of 2.006
million tonnes (a 4-year high).
*	The reduction in inventories has certainly not been a result of
strong demand, but rather continued discipline on the part of major
producers -- NORSCAN mills operated at only 78% and shipments equalled 88%
of capacity in Sept.  
*	We are encouraged by this news, and believe that pulp prices could
see an increase in coming months. As we wrote yesterday, we see 2002 as the
cyclical trough yr with NBSK pxs averaging $510/tonne, followed by a 17%
rebound in '03 to $595/tonne, and '04 as the cylical peak yr with avg px of
$695/tonne.     


 <<Pulp 10-11-01.pdf>>  <<Pulp 10-11-01.doc>> 



ADDITIONAL INFORMATION AVAILABLE UPON REQUEST

 Salomon Smith Barney ("SSB"), including its parent, subsidiaries and/or
affiliates ("the Firm"), usually makes a market in the U.S.-traded over the
counter securities recommended in this report and may sell to or buy from
customers, as principal, securities recommended in this report.  The Firm or
employees preparing this report may have a position in securities or options
of
any company recommended in this report.  An employee of the Firm may be a
director of a company recommended in this report. The Firm may perform or
solicit investment banking or other services from any company recommended in
this report.

Securities recommended, offered, or sold by SSB: (i) are not insured by the
Federal Deposit Insurance Corporation; (ii) are not deposits or other
obligations of any insured depository institution (including Citibank); and
(iii) are subject to investment risks, including the possible loss of the
principal amount invested.  Although information has been obtained from and
is
based upon sources SSB believes to be reliable, we do not guarantee its
accuracy and it may be incomplete or condensed.  All opinions and estimates
constitute SSB's judgment as of the date of the report and are subject to
change without notice.  This report is for informational purposes only and
is
not intended as an offer or solicitation for the purchase or sale of a
security.  Investing in non-U.S. securities, including ADRs, by U.S. persons
may entail certain risks.  Investors who have received this report may be
prohibited in certain U.S. states from purchasing securities mentioned in
this
report from SSB.  Please ask your financial consultant for additional
details.
This report has been approved for distribution in the United Kingdom by
Salomon
Brothers International Limited, which is regulated by the Securities and
Futures Authority.  The investments and services contained herein are not
available to private customers in the UK and South Africa.  This report was
prepared by SSB and, if distributed in Japan by Nikko Salomon Smith Barney
Limited, is being so distributed under license.  This report is made
available
in Australia through Salomon Smith Barney Australia Securities Pty Ltd. (ABN
64
003 114 832), a Licensed Securities Dealer, and in New Zealand through
Salomon
Smith Barney New Zealand Limited, a member firm of the New Zealand Stock
Exchange.  This report does not take into account the investment objectives
or
financial situation of any particular person.  Investors should obtain
advice
based on their own individual circumstances before making an investment
decision.  Salomon Smith Barney Securities (Proprietary) Limited is
incorporated in the Republic of South Africa (company registration number
2000/025866/07) and its registered office is at Grosvenor Corner, 195 Jan
Smuts
Avenue, Rosebank, 2198, Republic of South Africa.  Salomon Smith Barney is a
service mark of Salomon Smith Barney Inc.

(c) Salomon Smith Barney Inc., 2001.  All rights reserved.  Any unauthorized
use, duplication or disclosure is prohibited by law and may result in
prosecution.