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Suzano points to tight supply and demand and intends to reduce sudden price changes

According to the company's president, Walter Schalka, the idea is to have a different strategy next year, with fixed prices

In a press conference this Friday, 28, Suzano executives noted that there is a tight relationship between supply and demand for pulp in international markets. However, the forecast on price levels for the fourth quarter is optimistic.

In this scenario, the company is not satisfied with the volatility of commodity prices in global markets, as it understands that the variation is not positive for the company or its customers. For this reason, the pulp producer intends to try to reduce sudden variations in 2023.

“The price volatility environment is not good for customers and for us. The entire chain is affected by this, and our ambition is to reduce this over time”, said the president of Suzano, Walter Schalka. “We will work on that next year, we will have schemes like fixed price, but we will protect our prices when the price drops”, added the executive.

According to Leonardo Grimaldi, pulp director at Suzano, the addition of new production capacities next year is still unclear, as there may be unscheduled maintenance stops and delays in projects.

The executive also said that stocks in ports in Europe and Asia are at low levels, especially in hardwood, which contributes to the company’s pricing, which has sought to meet orders from Asian customers after facing delays in deliveries.

In this sense, Suzano should not increase pulp stocks at the end of this year. According to Grimaldi, the company sees consistent demand in Europe, the United States, Latin America and China, with a positive short-term scenario.

In the coming months, the company’s focus should remain on integrating the assets acquired in the tissue segment of the multinational Kimberly-Clark, expanding the company’s presence in this sector in the Southeast region.

Source
UOL
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