Suzano Warns of Rising Global Tissue and Hygiene Product Prices Amid Iran Conflict

Brazilian pulp producer Suzano S.A. has warned that global prices for toilet paper, tissues and diapers are likely to rise if the ongoing U.S.-Israeli conflict with Iran continues, citing mounting transportation and input costs across the supply chain.

The company, the world’s largest producer of pulp used in consumer hygiene products, said higher oil prices triggered by the conflict are increasing expenses related to shipping, trucking, rail logistics and chemicals essential for pulp production. Suzano supplies materials used in products such as Cottonelle toilet paper and Kleenex tissues manufactured by Kimberly-Clark Corporation.

“There is for sure an increase in cost to the whole system, the whole value chain,” Paulo Leime, Suzano’s managing director for Europe, the Middle East and Africa, told Reuters. He added that sustained disruption would “put pressure on paper prices” and could drive broader inflation across multiple consumer goods categories.

Leime did not specify when price increases might take effect but indicated that rising indirect costs—particularly for chemicals such as caustic soda and sulphuric acid—are compounding the impact of higher fuel prices. While Suzano has hedged some raw material costs, the broader cost environment remains volatile.

The executive also highlighted operational challenges in the Middle East, where Suzano holds significant market share in Dubai, Abu Dhabi, Bahrain and Qatar. The company has rerouted shipments through the Mediterranean and Suez Canal, followed by overland transport across Saudi Arabia and Jordan, adding further expense.

Despite rising energy costs, Suzano said its production remains unaffected due to its energy self-sufficiency. However, the pulp sector, one of the most energy-intensive industries globally, remains highly exposed to fuel price fluctuations.

Suzano’s shares have declined more than 15% since the start of the conflict, reflecting broader investor concerns about cost pressures and demand uncertainty.