Pulp-Price Recovery Unlikely in Short Term: Suzano CFO

The video discusses the impact of the pandemic on the pulp and paper industry, highlighting strong demand for tissue products, especially in China, and declining demand for graphic paper. It explores the potential need for paper mill closures and market adaptation strategies, such as converting mills to produce packaging materials. The discussion also covers geographical demand trends, stockpiling concerns, and the challenges of predicting pulp price recovery. Additionally, the potential for a new global carbon credit system is examined, with a focus on bilateral deals to mitigate emissions.

What has been a major factor driving the increased demand for tissue products globally?

• Increased digitalization

• Panic buying due to hygiene concerns

• Rise in packaging needs

• Decline in graphic paper demand

What percentage of the company's sales is attributed to the graphic paper industry?

• 20%

• 40%

• 30%

• 10%

What is the company's outlook on the future of the graphic paper industry?

• Expecting a significant recovery

• Seeing stable demand

• Anticipating further decline

• Planning to expand production

Which regions have shown strong demand for tissue products post-pandemic?

• India and the Middle East

• Europe and Africa

• China and the US

• South America and Australia

What is a potential risk associated with the high demand for tissue products during the pandemic?

• Permanent decline in graphic paper demand

• Higher production costs

• Increased competition in the tissue market

• Overstocking leading to reduced future demand

Why is it difficult to predict pulp price recovery?

• Stable prices in the US

• High production costs

• Uncertainty in commodity markets

• Fluctuating demand in Europe

What strategy is the company using to engage in the carbon credit market?

• Investing in new technologies

• Building new paper mills

• Structuring bilateral deals

• Reducing production