Suzano Intensifies Geopolitical Monitoring as CEO Highlights Structural Shifts in Pulp Market

Suzano has strengthened its geopolitical monitoring efforts amid escalating tensions in the Middle East, as the company’s president, Beto Abreu, pointed to evolving structural dynamics in the global pulp market.

Speaking at a Bradesco BBI event in São Paulo on April 7, Abreu said the company’s internal crisis committee has become a routine mechanism in response to heightened global uncertainty. He emphasized the importance of closely tracking geopolitical developments that could affect supply chains and market stability.

Abreu also highlighted ongoing structural changes in China, particularly the increasing integration of paper manufacturers into pulp production. This trend, he noted, is reshaping long-term supply and demand dynamics in the sector. Despite the acceleration of this integration, he said China’s competitiveness remains limited in the short term due to its continued reliance on imported timber and the lack of consolidation in that supply base.

“I see integration happening at a faster pace, but I don’t see solid competitiveness in the short term. China is still heavily dependent on timber imports, and that is still a poorly consolidated market,” Abreu said.

On energy costs, the executive stated that Suzano is shielded from short-term volatility through hedging strategies. According to him, all fuel and gas requirements are protected, preventing immediate cash flow impacts. However, he noted that fluctuations may still affect EBITDA, with financial compensation mechanisms expected to offset the impact.

Suzano continues to monitor global developments while adapting its strategy to shifting market conditions and cost structures.