Pulp News

Suzano intends to increase pulp production in the coming quarters

The company seeks to compensate for low volumes in the first quarter, but the cost of production is expected to remain stable

Suzano intends to compensate for the low volumes of pulp between January and March, increasing production in the coming quarters.

Meanwhile, the cash cost of fiber production should remain stable, despite the recent rise in the price of natural gas and the continuity of uncertainties in the commodities scenario. “There is room to recover and deliver the volumes that the market expects”, said the director of pulp operations, Aires Galhardo.

In addition to its position as the largest producer of market pulp in the world, the Brazilian company also has the lowest cash cost of fiber production. According to Galhardo, this higher volume will be produced in plants that have better performance, greater availability of energy for sale and greater dilution of fixed costs, and will benefit the perspective of stability.

In the coming quarters, lower maintenance expenses are also expected. “There may even be a reduction, but we prefer to adopt a more conservative stance”, added the executive.

According to Leonardo Grimaldi, executive director of commercial pulp and people and management, the first quarter was marked by greater tightening between world supply and demand – a relationship that may be even more fair in the second quarter. “This favored a series of price increases”, he points out, noting that the prices carried out in the first months of the year have not yet reflected the totality of the adjustments applied.

“Demand remains strong both in the domestic and international markets, given the resumption of activity and the recovery in consumption of printing and writing paper. In addition, stoppages in factories limited supply”, explained the director of paper and packaging, Fabio Almeida.

Source
Valor Econômico
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