SUZBY - Bleached Hardwood Kraft Pulp Prices: Supply And Demand Analysis
Primarily written for Fibria (NYSE:FBR) and Suzano (OTCPK:SUZBY). All supply numbers from Fibria press releases unless otherwise cited.
This article will look at the cost of pulp, it’s forward trajectory, and the effect on financials.
We look at Bleached Hardwood Kraft Paper, abbreviated BHKP, harvested from Eucalyptus trees. BHKP saw strong price increases throughout 2017. The pulp market expected volatility in vast excess of historical levels. Historical numbers are obviously less relevant given the extreme price appreciation.
Above is a price-chart from a Fibria (NYSE:FBR) IR Presentation.
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