Suzano announced a new price increase of $70/t for bleached eucalyptus kraft pulp (BEKP) for its European and North American customers.
The new round of readjustments in the price of raw materials, which has been announced in recent days, has increased the attractiveness and positive outlook for the sector, especially Suzano itself and also Klabin, according to BTG Pactual, a Brazilian investment bank specialized in investment and venture capital.
“We must confess that the strength of the scenario took even the most optimistic industry analysts (like us) by surprise. In view of recent events and the fact that we are only in January/February, we believe that our projection of average short fiber prices, of US $ 575 / t for 2021, may prove to be somewhat conservative”, said the bank, in a report.
For BTG analysts, demand is expected to improve overall, with fiber stocks falling in China and healthier margins.
This is Suzano’s second consecutive growth announcement for Europe and the US this year, but the bank still sees room for further price increases for the company and industry in China in the coming weeks, given the speed of previous announcements and the favorable balance sheet.
In general, the recommendation is to buy for both companies, with an optimistic outlook for the market. Suzano continues to be BTG’s main choice, with significant potential for deleveraging.