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Significant Increase in Pulp Prices Challenges the Paper Industry, Which Needs to Maintain Competitiveness with Sustainability and Strategic Stock Planning.
The paper sector in Brazil is facing a complicated period due to the continuous rise in pulp prices. This factor exerts significant pressure on companies, which are looking for innovative ways to absorb costs without passing them directly to consumers. The increase in pulp prices, recorded with increments of up to US$ 30, is forcing industries to find sustainable solutions to maintain sustainability in the market.
In response to the rise in pulp prices, industries have been investing in stock planning strategies and process optimization. This situation, which directly affects their financial planning, also forces a reevaluation of sustainability practices. Maintaining product quality while seeking ways to reduce financial impact has become a priority. Additionally, the continuous pursuit of technological innovations can help mitigate additional costs.
Global Impact on the Market
The cost increase reached US$ 80 per ton worldwide. According to a report released by the Fitch Ratings agency 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 price increases were contained in June, assessments from Bradesco BBI suggest that there is no prospect of significant declines in pulp prices in the short term.
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Competitiveness Strategies
To cope with these cost increases and maintain competitiveness, companies in the sector need to find innovative methods to absorb additional expenses without passing them on to end consumers. ‘By reviewing our processes and investing in sustainability, we were able to absorb part of the cost increases without compromising the quality of our products’, says Rafael Rieper, CEO of Ripz.
In addition to prioritizing sustainability, Ripz has implemented a strategic stock planning, acquiring raw materials at economically more advantageous times to avoid peaks in pulp prices. But why not simply opt for a different raw material?
100% Pulp Paper Advantages
‘Being produced from natural fibers, 100% pulp paper decomposes easily, making it a smart choice for consumers and companies looking to reduce their environmental impact without compromising quality’, explains Rieper.
In addition to the environmental benefits, 100% pulp paper offers excellent strength and a soft touch, making it ideal for all hygiene purposes. The use of 100% pulp paper, therefore, not only aligns with sustainable practices, but also ensures the maintenance of high quality and functionality standards for products.
Source: © Fernanda Glinka
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