China Desk: Suzano raised pulp prices for Chinese buyers. They haven't paid gladly yet
Up US$20 per tonne in China and US$30 in the rest of Asia, effective immediately. In Europe, the list price is already US$1,410.
To save you time3
- How much did Suzano raise prices?
- US$20 per tonne in China and US$30 in other Asian markets, effective immediately (confirmed to Reuters).
- And outside Asia?
- The week before, it announced a second straight US$50/t hike in Europe and the Americas for November; the European list price reached US$1,410/t.
- Will the hike stick?
- XP has doubts: reduced buying, resale around US$590/t and weak margins at Chinese mills suggest the floor isn't firm yet.
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Suzano raised eucalyptus pulp prices in China by US$20 per tonne and in the rest of Asia by US$30, effective immediately.
Context
- The week before, it made a second straight US$50/t hike in Europe and the Americas: the European list price reached US$1,410/t.
- In China, hardwood pulp trades around US$600/t (XP).
The Chinese side
XP sees buyers still resisting: reduced purchases, resale around US$590/t and weak paper-mill margins. And wood chip prices keep falling in China, cheapening domestic fiber for integrated producers.
What I would watch
China sets pulp's marginal price. An announced hike is intent; a paid hike is what reaches SUZB3's cash. With the dollar at R$5.65, every extra dollar is worth even more in reais, if Chinese buyers accept.
