The price of Brazil’s market pulp rose by $300 per tonne in the
first half of this year, with that destined for Europe fetching close
to $900 per tonne, and that going to China being sold for about
$100 per tonne less.
Since then, however, the price has fallen back by $100 per
tonne, although the current price is still far above the low of
$500 per tonne of 12 months ago.
The companies seem undeterred by the fall, however, which
many attribute to the fact that China, which bought more than it
needed last year when prices were at their lowest, took
advantage of the recent high prices to export a surplus and
make a handsome profit.
Suzano, which plans to build two brand new 1.3mt (million
tonnes)-capacity mills in the next three years, as well as add
400,000 tonnes capacity at its pulp and paper mill in Bahia state,
believes that because stocks are still low, prices will soon pick up
and will remain above $800 per tonne for the foreseeable
The price falls are also explained by the fact that mills
damaged by last years earthquake in Chile have now resumed
production, while some high cost mills in North America and
elsewhere which ceased production last year, have been started
Fibria, the company resulting from the merger of Aracruz and
VCP, which has still to completely recover from the large losses
it made last year, now plans to start up a second line at its brand