Suzano's output cut to tighten market supply-demand-Jefferies

ENCE Energia y Celulosa SA

07/08/2025 14:53

** Jefferies sees the decision by Suzano SUZB3.SA, the world's largest hardwood pulp producer, to lower its output as a positive read across to hardwood pulp peers and softwood producers

     ** In its view, the output cut will reduce inventories and tighten market supply-demand, benefiting in particular Finnish firms UPM UPM.HE and Stora Enso STERV.HE, Spain's Ence ENC.MC, and Sweden's SCA SCAb.ST

** Jeffries says that Suzano announced a 3.5% reduction in production over the next year as challenging pulp environment resulted in pulp volumes not generating adequate returns

** Suzano's cut complements ongoing downtime in the softwood pulp market, where other producers have already curtailed supply, further contributing to market balance, the broker adds

** At 01:30pm GMT shares of Stora Enso rise 6%, UPM is up 4%, and Ence and SCA gain 3%

 (Reporting by Elviira Luoma)

 ((Elviira.luoma@thomsonreuters.com))