Commodity reports

Wood pulp
Pitprops

Wood pulp

The figures quoted in the text are those available up to 1 March 1950, drawn from official sources, from World Wood Pulp Data (published by the Canadian Pulp and Paper Association and the United States Pulp Producers Association), and from trade journals. Except where otherwise indicated, metric units are used throughout.

In 1948 wood pulp consumption in North America attained new record heights, and consumption by European mills, although still below normal levels, was rapidly increasing. Toward the end of the year, however, a leveling-off of demand in the United States developed into a recession on the world export market, which reached a climax by midsummer of 1949. For the Northern European exporting countries, greatly dependent on pulp exports as a source of dollar exchange, this situation was the more serious when viewed in the light of substantial increases in North American productive capacity.

However, in early September 1949 a renewal of activity became apparent in the U.S. pulp market, and by the turn of the year the United States was back to record-breaking monthly production and consumption. There was also a partial recovery of the earlier drop in Northern European exports to the United States and other destinations. Over-all production for 1949 in North America was lower than for 1948; but the revival in the last months of 1949 promises a possibly higher consumption level in 1950, although the record 1948 figures will probably not be reached. Such a situation in North America should help maintain a firm world pulp market.

Northern European exporters have continued their efforts to sell on the U.S. market. So far, devaluation of currencies has not given rise to underbidding, but it is too early to say how the situation may develop. On the other hand, devaluation has given relief to Northern European producers with relatively high production costs. The trend in the United States is still toward dependence on North American supplies; Europe has maintained its position as the major source of supplies for all continents except North America.

Statistics assembled by the Montreal Pulp Conference organized by FAO in May 1949 indicated that the: 1948 output was slightly in excess of current consumption. Although the apparent world surplus was less than 3 percent of production and may have been due to statistical inaccuracies, it did tend to explain the decline in prices, the accumulated stocks, and of their pulp. The estimates for 1949 and 1950 indicated-a rapid restoration of equilibrium, which appears now to be the actual situation.

World production and trade data for 1949 are summarized in Table 1.

Table 1. - Wood pulp: World production and trade data

Region		1949 Estimates
		Production	Imports	Exports	Consumption
		(1,000 metric tons)
TOTAL		26,822	4,654	4,864	26,612
North America		17,888	1,793	1,516	18,165
Latin America		219	209	-	428
Europe		8,086	2,550	3,348	7,288
	Northern	5,356	13	3,247	2,122
	Eastern	421	66	-	487
	Western	672	1,968	4	2,636
	Central	1,637	503	97	2,043
South Africa		15	1	-	16
Asia and Pacific		614	101	-	715

- None.

WOOD PULP PRODUCTION

World pulp production in 1949 (excluding the U.S.S.R.) is estimated at about 27 million tons. This is less than the 1948 output, and less than the volume of production that had been considered possible by the Montreal Pulp Conference in May 1949.

In most European countries steady rehabilitation of the pulp industry continued through 1949, the largest production increase (about 70 percent) having occurred in Western Germany. A few European countries still operate far below capacity, primarily because of pulpwood shortages. But Northern European mills, which had cut production during the first half of 1949, were later reported running close to capacity.

World pulp-producing capacity continues to expand. In North America over 2 million tons of new capacity have come or will soon come into operation. In Europe, Portugal and Norway are planning to erect new mills, and there are also plies for increased capacity in Austria, Czechoslovakia, and Yugoslavia. In Australia and New Zealand new developments are under way, and new pulp mills are projected in Asia and the Far East. At the same time' recent estimates still place the idle pulp capacity of the world at over 5 million tons. Most of this idle capacity is located in Europe, North America, and Japan.

The 1948 and 1949 production figures for North America and Europe are shown, by countries, in Table 2, together with figures on production capacity.

NORTH AMERICA

North American production of all grades of pulp in 1949 totaled approximately 17,900,000 tons, about 950,000 tons less than in 1948.

United States of America

In 1948 wood pulp production in the United States reached an all-time record of nearly 11.7 million tons. In late 1948, however, paper and paperboard production started to decline, following the general economic trend, and this decline was accompanied by a drop in consumption of wood pulp, particularly of market pulp. During the following months, consumers of market pulp drew heavily on inventories that had been acquired in many instances at prices much higher than those currently prevailing.

In 1949 the manufacture of paper and paperboard, at 18.4 million tons, was approximately 1.4 million tons below the 1948 record, and rayon production dropped 12 percent. Total U.S. wood pulp production (11.0 million tons) fell below the 1948 volume by about 6 percent. In August 1949, however, as a result of the general economic situation, confidence began to return throughout the pulp industry, and during the last three months of the year greater tonnages of wood pulp were produced and consumed than in any previous corresponding period.

The brisk demand for pulp continued in January 1950, and it is generally expected that mill requirements will be sustained at high levels, at least during the first part of the year. Inventories, which had dropped to a lower level than at any time since May 1947, are now in process of replenishment.

Canada

In 1948, Canadian (including Newfoundland) mills, operating at capacity, produced nearly 7.2 million tons of all grades of wood pulp (360,000 tons more than in 1947, and almost double the volume of 1937). The decline in U.S. demand during 1949 affected Canadian output of market pulp; and although the final figures for 1949 are not yet available, production and sales are expected to be slightly below the 1948 figures.

The increasing-demand for kraft pulp has led to the construction of three new sulphate pulp mills having a total projected capacity of 145,000 tons annually, to add to the existing Canadian capacity of some 700,000 tons a year; they will come into operation progressively over the next two years.

EUROPE

European pulp production for 1949 is estimated at approximately 8.1 million tons, compared with 7.9 million tons in 1948.

In most European countries rehabilitation and modernization of plants have made further progress, while supplies of raw materials and equipment and availability of manpower have definitely improved as: compared with the immediate postwar years. Many formerly idle mills are getting back into production.

Table 2. - Wood pulp production and consumption, North America and Europe

Country			1948			1949 (Estimates)
			Capacity	Production	Consumption or new supply	Capacity	Production	New supply
			(1,000 metric tons)
North America			19,254	18,839	19,036	20,686	17,888	18,165
	Canada 1		7.397	7,161	5,470	7,900	6,863	5,492
	United States		11,857	11,878	13,566	12,786	11,025	12,673
Europe			10,881	7,905	6,958	10,924	8,086	7,288
	Northern		7,376	5,407	2,439	7,352	5,356	2,122
		Finland	2,482	1,675	817	2,485	1,550	652
		Norway	1,324	823	506	1,324	935	493
		Sweden	3,570	2,969	1,116	3,543	2,871	977
	Eastern		443	392	474	483	421	487
		Hungary	25	6	41	25	6	40
		Poland	231	210	255	256	227	250
		Romania	148	140	138	157	145	145
		Yugoslavia	39	36	40	45	43	52
	Western		977	674	2,395	1,004	672	2,636
		Belgium	77	52	212	77	66	183
		Denmark	5	1	76	5	1	74
		France	545	459	771	562	467	830
		Ireland	-	-	10	-	-	13
		Netherlands	110	39	193	120	41	41
		Spain	82	59	100	82	46	103
		United Kingdom	158	64	1,033	158	51	1,392
	Central		2,085	1,372	1,650	2,085	1,637	2,043
		Austria	385	258	243	385	284	244
		Czechoslovakia	419	304	281	419	326	286
		Italy	240	203	300	240	215	423
		Western Germany	890	471	619	890	676	895
		Switzerland	151	136	207	151	136	195

- None or negligible..
¹ Includes Newfoudland.

Northern Europe

Finland. Since the end of the war, Finland has made remarkable progress in restoring the productivity of its mills and improving supplies of raw materials for the pulp industry. Manpower too has been more readily available. In 1948 production of pulp amounted to about 1.7 million tons, approximately 60 percent of total capacity. A leveling-off of exports and production late in 1948 seriously threatened the country's economy. By the spring of 1949 stocks of pulp were more than double the normal, and several manufacturers were compelled to reduce output.

In the fall of 1949, the partial recovery on the U.S. and world markets brought renewed stimulus to Finnish pulp production, and at the end of the year the pulp industry was operating at near capacity. But although the final figures for 1949 are not available at the time of writing, production is expected to have been less than 1.6 million tons. Stocks of chemical market pulp had decreased approximately 50 percent from the levels prevailing in the spring.

Sweden. In 1948 Sweden's production of all grades of pulp amounted to approximately 3 million tons. Production in early 1949 was limited, mainly because of inability to obtain pulpwood. There are, in fact, supplies of pulpwood in southern and central Sweden, but current price levels do not permit the shipping of these supplies to northern Sweden. Germany is reported to have negotiated for pulpwood imports at prices almost twice as high as those paid by Swedish mills.

As was the case with Finland, brisker activity in the fall of 1949 in some degree made up the earlier lag. According to preliminary estimates, the 1949 production of market pulp (including viscose pulp) was over 1.70 million tons, or almost as much as in 1948, when it was just over 1.75 million tons. In this connection it may be recalled that the corresponding figure for the record year 1937 was 2.25 million tons.

Norway. Norwegian production in 1949 is expected to show a slight improvement over the 1948 levels. Confidence in future possibilities is evidenced by the fact that Norway plans, to build a new chemical pulp mill which will replace two old mills. The total annual capacity, therefore, will not be increased, nor is the consumption of pulpwood expected to increase.

Central Europe

Austria. Gradual improvement in Austria's pulp output continued through 1949, and the year's production of all grades of pulp is estimated at 284,000 tons as compared with 258,000 tons in 1948. Production capacity, which is approximately 385,000 tons, could be expanded by modernizing mill equipment, and the present limited supplies of domestic raw material could be increased by carrying out thinnings to provide more pulpwood and by making greater use of sawmill "waste."

Czechoslovakia. As in Austria, pulp output in Czechoslovakia showed gradual improvement in 1949, and production of chemical pulp for the year is estimated at about 325,000 tons, approximately 25,000 tons over the 1948 figure. Production of chemical pulp from hardwoods is now being undertaken by a new mill in the eastern part of the country.

Italy. The chemical pulp industry in Italy is now running close to capacity in an effort to speed the export drive for paper and paperboard. Domestic production of pulp' however, provides barely 30 percent of the paper industry's requirements; the remainder has to be imported. An important event for the Italian paper industry was the granting by ECA of a $1,650,000 loan for the import of American paper-manufacturing machines.

Western Germany. The largest production increase in Central Europe occurred in Western Germany, where output increased from 471,000 tons in 1948 to an estimated 676,000 tons in 1949, a figure equal to 75 percent of existing capacity. This rapid gain was stimulated by Marshall Plan aid and by the cutting-down of pulpwood exports from the French Zone. Towards the end of 1949, pulpwood imports from Sweden to Western Germany were resumed for the first time since the end of the war. Bizone industries contracted for 350,000 cubic meters of Swedish pulpwood, subject to the approval of trade licenses. The price of pulpwood, most of which is obtained from state forests, is much higher in Western Germany than in other countries. As long as this situation remains unchanged, pulpwood imports are likely to be continued.

Eastern Europe

Production figures for Eastern European pulp-producing countries are estimates. For 1949 the combined production of Hungary, Poland, Romania, and Yugoslavia has been set at about 420,000 tons, as compared with 390.000 tons in 1948.

Western Europe

Pulp production in 1949 for Western European countries appears to be about the same as in the previous year. The Netherlands and the United Kingdom are said to be still operating at approximately 30 to 40 percent of capacity. In Portugal, according to recent reports, complete plans for an integrated mill, capable of producing initially 20,000 tons of sulphite pulp and 18,000 tons of paper a year, have been drawn up. The pulp capacity may later be doubled and the paper capacity increased to 28,000 tons. Ultimately this mill, in conjunction with a sulphite mill producing 6,000 tons annually, may be able to supply Portugal's entire requirements and leave a portion of its output for export. The new mill will be located in a heavily forested region which can furnish it with sustained pulpwood supplies. Construction is expected to begin shortly, and the mill may start operations toward the end of 1951.

LATIN AMERICA

Despite some expansion in recent years, pulp production in Latin America still covers only approximately one-third of the region's requirements. Further developments depend largely on the possibilities of using indigenous species' including hardwoods, for the production of pulp at competitive costs.

Recent experiments with tropical and other hard-wood species have been carried out in a number of countries. A significant technical advance has 1 the perfection of the neutral semi-chemical process, which involves both a chemical softening and a' mechanical grinding. In experiments c conducted on an industrial basis, as many as 30 different species have been pulped simultaneously with success. This is an important development in view of the virtual impossibility of segregating at reasonable cost many of the hardwood species, which grow in dense mixed stands. The pulping of tropical woods will probably receive a great impetus during the next two decades. If so, Latin-American pulp production may grow further and make possible an increase in the relatively low level of pulp consumption.

Argentina

At the rate of production prevailing during the first 10 months of 1949, Argentina's production of chemical pulp (including pulp not made from wood) for the whole of 1949 is not expected by the trade to differ materially from 1948 levels, when 25,000 tons of chemical pulp and 12,000 tons of mechanical pulp were produced. Recent studies indicate that, with improvement in transportation, enough pulpwood to double present pulp output could be supplied from the Paraná Delta region. This is important, as straw, reeds, cane, and bagasse, which form an important source of raw material, are now harder to obtain than in the past. New wheat-harvesting machines leave the straw bent or scattered and make its collection more difficult, while cane sugar mills have installed machinery for the use of bagasse as a fuel, since the supply of fuel oil has been uncertain.

Chile

A new sulphate wood pulp plant is projected between the Provinces of Nuble and Concepción in Chile. The capital is being provided by the Chilean Development Corporation and by Compañía Manufacturera de Papeles y Cartones.

Peru

A small pulp and paper mill is under construction near Chiclogo. Capacity is said to be 3,000 tons per years the raw material being bagasse. There is a, second project for a new pulp and paper plant, and a concession has been obtained from the Peruvian Government covering the import duties and certain other taxes for the required machinery, which has been valued at approximately $1,180,000. The Peruvian Amazon Corporation is also said to be investigating the establishment of a pulp mill in eastern Peru.

Uruguay

A new pulp and paper mill has been placed in operation in Uruguay, the raw material used being straw.

OCEANIA

Australia

According to recent reports, Australia's pulp and paper producing capacity is undergoing further expansion. One pulp mill is being expanded from a capacity of 36,000 tons per year to 61,000; at the same time, its capacity for producing bleached pulp is being extended. Four new machines constitute the main features of the first stage of the development program. When these are all in production, the total annual output of paper and paperboard is expected to exceed 180,000 tons.

Plans for the construction of a new mill in Queensland are also reported to be proceeding satisfactorily. The first machine to be installed will produce 13,500 tons of cardboard annually.

New Zealand

Construction has recently begun on New Zealand's first wood pulp mill, and over $500,000 worth of equipment has been ordered. This mill is scheduled to begin production at the end of 1951 with an initial output of 23,000 tons yearly. It will be the key unit in a development planned to have other wood utilization units closely integrated with it. These units will be a kraft paper mill with an annual output of 10,000 tons and a modern Swedish gang-saw mill with a yearly capacity, of 33,000 m³.

Another mill which eventually will have a much greater output is planned by the government, to be located on the east coast of the North Island. Present proposals are for an annual production of 51,000 tons of newsprint, 9,000 tons of printing papers, and 24,600 tons of unbleached pulp for export. The whole installation will include a groundwood mill with an initial pulping capacity of 150 tons a day, a sulphate pulp mill of similar capacity, a bleaching plant, and a sawmill with an annual capacity of 160,000 m³.

SOUTH AND EAST ASIA

Japan

Japan's production of all grades of pulp rose from slightly less than 300,000 tons in 1947 to 410,000 tons in 1948, and preliminary figures for 1949 show another increase to approximately one-half million tons. While mechanical pulp mills are running to capacity, output of chemical pulp amounts to about 54 percent of 1941 production. The: rayon pulp mills have an installed capacity sufficient to produce 180,000 tons per year; their production of 33,000 tons in 1948 and around 54,000 tons in 1949 indicates the present low rate of operation.

The major problem in Japan is inadequate pulpwood supplies. Although imports are anticipated, reforestation is said to be the fundamental long-range solution to the Japanese forest problem. Additional raw material is available in the form of rice, wheat, and barley straws. Over 16 million tons of these straws were available from the-1948 crops; and it has been said that nearly four times the present paper needs of Japan could be produced from such products.

Philippines

Establishment of a pulp mill to supply an existing paper mill was approved in October of last year. It is reported that US$ 600,000 will be made available from the national economic development fund to support this project. The mile is expected to conserve dollar exchange which otherwise would be required for obtaining foreign pulp.

WOOD PULP TRADE

Despite the recovery toward the end of the year, Northern European pulp exports to the United States in 1949 fell 22 percent below the 1948 volume, and Canadian exports about 19 percent. The drop in Canadian exports of market pulp amounted to 27 percent.

The chart below illustrates the marked changes in the pulp supply sources for the United States market which have occurred over a period of thirteen years, and the trend toward increasing dependence on North American sources of supply. The prewar dominance of European suppliers was halted by wartime conditions, and is not likely to revive. In 1945, 62 percent of U.S. imports came from Canada, while the remaining 38 percent originated exclusively from Sweden. By 1949, pulp supplies from all European sources had dropped to 25 percent.

U.S. wood pulp imports

The consequences of the currency devaluations of 1949 are not all clear. The revived interest of American buyers in European pulp was due more to the upswing in business conditions in this U.S. paper industry than to devaluation. European sellers maintained more or less-the same dollar prices after the devaluation as before, and the depreciation of the Canadian dollar did not cause any reduction in Canadian pulp prices. Devaluation helped European exporters cover their relatively high production costs, and sales to the United States became temporarily more profitable than to other nations, whereas before devaluation the contrary was the ease. The difference in price levels has, however, since narrowed as a result of price rises on the European markets.

NORTH AMERICA

United States

In 1948 U.S. imports of market pulp dropped below the 1947 volume by about 400,000 tons. This downward trend continued through October 1949, when imports showed a marked-rise, achieving the highest monthly total since August 1948.

Total pulp imports for 1949 amounted to 1,598,000 tons, one-fifth less than in 1948. The largest declines were registered for Swedish and Finnish pulp (30 percent and 20 percent respectively), while imports from Canada dropped by 18 percent. Shipments from Norway, though quantitatively small, were over 150 percent greater than in 1948.

The types of imports reflected continued demand for the bleached categories. While imports of unbleached grades dropped 40 percent between 1948 and 1949, the bleached sulphite imports for the two periods were at the same level, and bleached kraft even achieved a gain of 40 percent.

Offers of small quantities of unbleached chemical pulps from the U.S.S.R. , as well as trial offers of both bleached and unbleached pulps by Czechoslovakian and Austrian producers, have been reported. Imports from Austria in 1948 were small; in 1949 they amounted to 3,000 tons and imports from Czechoslovakia to 1,000 tons.

In certain segments of the U.S. industry, concern is still felt about possible further effects of the devaluations and about the tariff reductions on certain' pulp products negotiated at Annecy, ranging up to 50 percent on some items.

Canad/I>

During 1948 Canada's pulp exports to the United States increased by about 6 percent over the 1947 volume and were nearly three times the prewar average. Its shipments to the United Kingdom rose by about 39 percent over 1947.

In 1949 pulp exports to the United States were approximately 1,400,000 tons, about 230,000 tons less than in 1948. Their dollar value was about 15 percent below the 1948 level (approximately US$ 177 million, compared with US$ 211 million in 1948).

The decline in shipments to the United States 1949 coincided with a reduction in exports of wood pulp to overseas destinations. Import restrictions and currency troubles are factors responsible for this reaction. Commonwealth countries have been the traditional markets, but they cannot afford the dollars. Canadian producers are eager to retain as much as possible of these markets, because a single market for pulp and paper products makes the Canadian manufacturer particularly vulnerable to fluctuations in the U.S. economy.

EUROPE

Exporting Countries

Finland. The reduction in prices and absorption capacity on world markets had a profound effect ' on Finland's pulp and paper exports. The economy of Finland is largely based on forest products industries: in 1948, for example, over 90 percent of land's total export receipts were derived from forest products; pulp and paper accounted for 51 percent.

During the seller's market of 1944 through 1947, the volume of exports expanded as rapidly as production capacity would permit. When a shift to a buyer's market occurred in the third quarter of 1948, rising production costs: and an unfavorable exchange rate prevented exporters from reducing prices. Exports leveled off late in 1948. Exports to the United States dwindled, aggravating the dollar shortage, and abnormally large stocks forced sizable production cutbacks. I

Similar conditions prevailed in the paper and paperboard industry, where 12 percent of the paper machines had to be shut down. This situation caused the export industries of the country severe losses, and was a major element in the first decision to devalue the Finnish currency in July 1949.

In the late summer, however, the market began to show firmer tendencies, and by November Finland had not only made up for previous export losses but had exceeded corresponding 1948 totals. Total 1949 pulp exports were 920,500 tons, of which sulphite comprised 450,000 tons, sulphate 311,000 tons, and mechanical 160,000 tons. The United Kingdom was the largest buyer. Despite increasing sales outlets in the United Kingdom and elsewhere in Europe, Finland will probably continue efforts to recover a larger share of the U.S. pulp market. At the same time, more Finnish pulp is expected to be converted into paper and board for export.

Sweden. By the beginning of December 1949 the year's production of chemical and mechanical pulp was reported as sold. Total pulp exports for 1949 amounted to 1,894,000 tons, an increase of nearly 214,000 tons over 1948.

Stocks have been reduced considerably, and late in 1949 chemical pulp stocks were scarcely more than half of the 300,000-ton total that existed on 1 January 1949.

In the latter part of 1949 Sweden made great efforts to counterbalance the earlier export losses on the U.S. market. So far as is known now, its exports to the United States in 1949 will amount to about 320,000 tons, or roughly 17,000 tons more than in 1948. Some mills are now reported to be converting substantial tonnages of rayon pulp capacity to the manufacture of paper grades, primarily for the U.S. markets.

Under the new Swedish-British trade agreement, the United Kingdom is prepared to buy increased quantities of pulp and paper from Sweden in 1950, a development foreshadowed at the Montreal Pulp Conference. In comparison with the agreement for 1949, the quantities stipulated mean 25,000 tons more paper pulp, 30,000 tons more mechanical pulp, and 45,000 tons more paper and paperboard.

Norway. Pulp exporters in Norway have no doubt derived advantage from the abolition of three taxes on wood which the industry found particularly burdensome. The saving to the producer through these tax removals is appreciable; for instance, on bleached sulphite nearly $18.75 per ton. In addition, the government has offered to rebate 9 kroner per cubic meter of wood to all firms purchasing more than their original quotas. A plan has also been evolved by the government whereby firms shipping into hard currency countries may retain 10 percent of the dollar exchange to use for imports of capital equipment. A similar principle has been put into practice by Finnish authorities.

Norwegian pulp shipments in 1949 were approximately 36,000 tons greater than in 1948.

Austria. With the slow improvement in the general economic situation, paper supplies on the domestic market have become almost normal, and governmental controls have been abolished during the past year. The Austrian pulp and paper industry is now making great efforts to improve its export prospects in its traditional markets. Exports were restricted to 6,000 tons in 1946 and 9,000 tons in 1947; but in 1948 they went up to 39,000 tons, and they will probably stand at a slightly higher level in 1949. Prewar exports amounted to 175,000 tons. Italy is now Austria's most important customer. The United Kingdom, Switzerland, and Greece are further potential markets.

Czechoslovakia. Czechoslovakia increased its pulp exports from 28,000 tons in 1946 to 38,000 tons in; 1948, a volume representing about 30 percent of the prewar rate. Total pulp exports for 1949 are expected to stand at about the 1948 level. Czechoslovak pulp producers have recently made efforts to extend their exports to the U.S. market.

Importing Countries

With the exception of Belgium, European countries imported somewhat larger quantities of pulp in 1949 than in 1948. The greatest percentage increase is noted for Italy, which doubled its previous pulp imports in order to expand its export trade in paper and paper products.

After a temporary slackening on some European paper markets, there is evidence now of a steadily growing demand, and it can be expected that at least as much pulp will be needed in 1950 by European importers as in 1949.

PRICES

The price decline on the pulp market since the fall of 1948 has been very far-reaching. This is illustrated by the course of Finnish wood pulp prices during 1349 on the United State, markets shown in Table 3.

Table 3. - Finnish wood pulp prices, U.S. market, 1949

Grade	1949 Prices
	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter
	(U.S. dollars per short ton )
Bleached sulphite	165.00 Dock	132.50 F.A.	118.00 F.A.	118.00 F.A.
Unbleached sulphite	140.00 Dock	124.50 F.A.	100.00 F.A.	100.00 F.A.
Unbleached sulphate	127.50 Dock	112.50 F.A.	85.00 F.A.	82.50 F.A.
Groundwood	85.00 Dock	75.00 Dock	65.00 F.A.	65.00 F.A.

NOTE: Dock - price on dock, F.A. - cost of inland freight to pun chaser's mill absorbed by the seller.