forest companies Latin American companies such as Chile’s Arauco and Brazil’s Suzano will benefit from an expected increase in wood pulp prices after a sharp drop in recent months, the credit rating firm said on Thursday Fitch Ratings.
In an analysis, Fitch estimated that an improvement in demand and a decline in inventories will drive average prices for wood pulp exported to China to about $650 per ton in 2023, above the low of $460 seen last May.
The estimate, in any case, would be 25% below the prices of about $860 per ton registered between July and October 2022.
The stabilization ofl price of essential material for paper making should maintain the current outlook for the corporate debt profiles of forestry companies in the region, after a complex phase in 2022, Fitch said.
Still, the report warned that the recent fall in pulp prices this year will imply a drop in average revenues and cash flow for foresters in 2023 and 2024, despite plans by some companies to improve capacity. of production.
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Source: Gestion
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