[Brazil] - Suzano Reduces 2024 Cellulose Production by 4% Due to Market Challenges

INSUBCONTINENT EXCLUSIVE:
to the current complex market conditions in the cellulose industry
that the reduced volume would not yield adequate returns in the present market environment
Bacci reassured stakeholders that this adjustment would not affect existing customer contracts or supplier relationships.The Ribas do Rio
Pardo Unit, formerly known as the Cerrado Project, remains on track
Suzano expects this facility to produce 900,000 tons of cellulose in 2024, as previously communicated to the market.This project represents
Challenges
R$80.50 for 2025
This divergence highlights the varied strategies companies employ to navigate market fluctuations.The broader economic context also plays a
role
The strengthening US dollar has benefited export-oriented companies like Suzano and Klabin.Analysts at XP Investments view the current
supply constraints as potentially favorable for short-term cellulose prices
as a lower-cost producer
XP Investimentos continues to rank Suzano as its top pick in the cellulose and paper sector, citing attractive valuation and strong market
By balancing short-term challenges with long-term growth prospects, the company aims to maintain its competitive edge in the global
cellulose industry.