Suzano stock gains 2.81% on pulp price increases

Suzano shares closed Tuesday up 2.81% at R$ 48.58. The market reacted to reports of pulp price increases scheduled for October across its key regions.

The company is notifying customers in Asia of an increase of $20 per ton. For buyers in Europe and the Americas, the price will rise by $50 per ton.

Analysts at Bradesco BBI stated that the move follows a successful implementation of a $20 per ton hike in Asia during September. The bank noted that low inventory levels at Chinese paper mills and upcoming seasonal demand support implementation in China. In addition, imported wood chip prices in Asia remain above $200 per bone-dry metric ton, which keeps input costs high and leads some integrated Chinese producers to purchase market pulp.

Bradesco BBI reiterated that Suzano remains its only buy recommendation in the paper and pulp sector. However, taking a more cautious view on the broader pulp market, the bank cut its aggregated 2027 EBITDA estimates for the sector by 14%.