The Brazilian pulp supplier, Suzano, reported to its customers another increase in the prices of eucalyptus pulp. The adjustment will be US$ 30 per ton, valid from March 1st in all markets, including Asian ones, according to industry sources. This is the fourth price increase announced by the company since December.
In North America, the price increases from US$ 1,380 to US$ 1,410 per ton. In Europe, with the new increase, fiber reference prices were raised to US$ 1,200 per ton. In China, in one month, the price increase reaches US$ 60.90 per ton.
The valorization of the raw material since the end of last year can be explained by the high demand, pulp inventories at critical levels throughout the system and supply restrictions, given the concentration of scheduled or unscheduled shutdowns for maintenance in plants this quarter.
According to Suzano’s director of commercial pulp and people and management, Leonardo Grimaldi, the relationship between supply and demand for pulp in the global market in 2022 is going to be tighter than expected and the fundamentals will remain positive in the coming months.
“Delays in the entry of new projects are favorable [to prices] and this is combined with logistical constraints that will make additional pulp take longer to reach the market,” he said last week, on a conference call to comment on fourth-quarter results.
At the time, the executive also said that the company was successful in fully implementing the increase of US$ 30 per ton announced for the Chinese market in January and was confident in the implementation of the readjustments announced for February: US$ 50 per ton in Asia, US $30 per ton in Europe and $40 per ton in North America.
Suzano confirmed the information.