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A significant increase in the price of cellulose challenges the paper industry, which needs to maintain competitiveness with sustainability and strategic inventory planning.
The paper sector in Brazil is facing a complicated period due to the continuous increase in cellulose price. This factor puts significant pressure on companies, which are looking for innovative ways to absorb costs without passing them directly to consumers. The rise in cellulose values, recorded in increments of up to US$30, is forcing industries to find sustainable solutions to maintain sustainability process on the market.
In response to the increase in the price of cellulose, industries have invested in inventory planning and process optimization strategies. This situation, which directly affects your financial planning, also forces a reevaluation of sustainability practices. Maintaining product quality while looking for ways to reduce the financial impact has become a priority. Furthermore, the continuous search for technological innovations can help mitigate additional costs.
Global Impact on the Market
The cost increase reached US$80 per ton around the globe. According to a report released by the rating agency Fitch Ratings in August this year, the expectation is that the global average price will reach US$675 per ton by the end of 2024. Although new value increases were contained in June, Bradesco BBI's assessments suggest that there is no prospect of a significant drop in cellulose prices in the short term.
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Competitiveness Strategies
To face these increased costs and maintain competitiveness, companies in the sector need to discover innovative methods to absorb additional expenses without transferring them to the end consumer. 'By reviewing our processes and investing in sustainability process, we were able to absorb part of the cost increases without compromising the quality of our products', says Rafael Rieper, executive director of Ripz.
In addition to prioritizing sustainability, Ripz implemented a strategic inventory planning, purchasing raw materials at more economically advantageous times to avoid spikes in the price of cellulose. But why not simply opt for a different raw material?
Advantages of 100% Cellulose Paper
'Because it is produced from natural fibers, 100% cellulose paper decomposes easily, making it a smart choice for consumers and companies who want to reduce their environmental impact without compromising quality', explains Rieper.
In addition to the environmental benefits, 100% cellulose paper provides excellent resistance and a soft touch, making it ideal for all hygiene purposes. The use of 100% cellulose paper, therefore, not only aligns with sustainable practices, but also ensures that high standards of product quality and functionality are maintained.
Source: © Fernanda Glinka
