With the Resumption of Commercial Activities in the Country After Covid-19, Suzano Highlights High Demand in the Chinese Pulp Market in the First Two Months of 2023

After the Long Period of Isolation Due to Covid-19 and the Celebration of the Lunar New Year, the Chinese Pulp Market Is High. The First Two Months of the Year Were of Great Commercial Results for Suzano Regarding the Trade of Raw Material in the Country.

The multinational pulp company Suzano is celebrating the return of its growth in the Chinese market in 2023. After a period of falling shares of the company, it has managed to rise again in the production and marketing of the product in China. The reasons behind the improvement are clear: the easing of activities post-Covid-19 and the celebrations of the Lunar New Year, which take place in February.

Suzano Resumes Growth in Pulp Production and Marketing in the Chinese Market, with Increased Demand During the Lunar New Year

Suzano closed the first two months of 2023 with good results regarding the demand for pulp in the Chinese market. The company had faced a moment of significant declines in shares in the country, due to low marketing and production of the raw material.

Now, the executives of the multinational highlight a moment of improvement in the country’s scenario, after a long period of isolation caused by the Covid-19 pandemic.

The return of business activities in the country has brought a sense of optimism to various companies in China, including Suzano.

Additionally, the company emphasizes that the celebrations of the Lunar New Year, which occur during February, caused a strong expansion in the demand for pulp in the country.

They also reaffirmed their commitment to the Chinese people, who are regaining trust in the country after crises in the stocks.

“In China, after the Lunar New Year, we noticed optimism among customers, with confidence in higher production levels,” said Suzano’s Executive Director of Pulp, Leonardo Grimaldi, during a conference with analysts. “Demand in January was higher than in December, and it rose again in February, to levels close to the historical ones.”

He also highlighted that the demand for pulp in the Chinese market is expected to increase in the coming weeks.

This occurs because the country has resumed contact with various other nations for commercial agreements, in addition to the return of production of various products in the region.

Company Recovers from Share Drop with Increased Demand for Pulp in the Chinese Market in This First Two Months of the Year 

Suzano’s shares had been declining intensely over the past few months, due to low productivity in the Chinese pulp market.

However, the company is rebounding in the current scenario, reporting great results, such as operational performance measured by EBITDA soaring nearly 30%, practically in line with analysts’ expectations, according to data from Refinitiv.

Walther Schalka, Suzano’s CEO, emphasized that it can significantly reduce operational costs during 2023, due to falling oil prices in the international scenario.

“The drop in oil results in lower wood costs due to transportation and the reduction in chemicals decreases our variable costs. If they remain at the level they are now in February, we will start to see a gradual decrease in cash costs because we are already at lower costs than at the end of last year,” the executive stated.

For the coming months, Suzano’s expectation is for an even more favorable market regarding the demand for pulp in China, with great financial results.