MethodologyContact usSupportLogin
The Fastmarkets Forest Products Latin American Conference 2025 in São Paulo was a pivotal gathering for industry leaders, where candid discussions on strategic growth, shifting market dynamics, and economic pressures took center stage. Top executives and analysts provided crucial insights into the evolving landscape of the pulp and paper market.
Investment and expansion were key topics, with top companies sharing their strategic outlook. Rodrigo Libaber, Eldorado’s commercial and logistics executive director, provided a reality check on the company’s planned second BEK pulp line, confirming that it has not yet received final approval. He highlighted the company’s focus on technological advancements and overcoming logistical inefficiencies in Brazil to enhance its operations.
Meanwhile, Chile’s CMPC is moving forward with its ambitious Project Natureza in Brazil. Guilherme Viesi, CMPC’s chief pulp commercial officer, announced that the project is targeted for board approval in the first half of 2026. This expansion, a 2.5 million tonnes/year BHKP mill, is a strategic move aimed at bringing the company’s production costs back into the first quartile of global competitiveness.
Cristiano Teixeira, the CEO of Klabin, outlined a long-term vision focused on vertical integration. He stated the company’s goal is to integrate 80-90% of its packaging paper production over the next decade and that any future mergers or acquisitions would be driven by this strategy, not simply fiber acquisition.
Discussions on the global pulp market were central to the conference. Patrick Cavanagh, Fastmarkets senior economist for pulp, presented an optimistic view, stating that a path to price recovery is beginning to take shape. He pointed to strategic market-related downtime by producers and increased buying from China as key drivers. Cavanagh, along with Eldorado’s Libaber, agreed that current BEK prices are “unsustainable,” having hit “rock bottom.”
However, this recovery will unfold in a changing market landscape. Praveen Singhavi, the CEO of Bracell, highlighted a significant shift in global production costs. Indonesia has surpassed Brazil as the low-cost producer, and China is rapidly gaining cost competitiveness. Singhavi noted that while China’s pulp production capacity has expanded significantly, the region will likely continue to depend on woodchip imports. He ultimately expressed confidence in the overall growth of global pulp demand over the next five years.
The growing role of China’s integrated mills and the strategic responses of global players were a major focus. Beto Abreu, the CEO of Suzano, the world’s largest pulp producer, stated that the rise of these mills is fundamentally reshaping the global supply-demand balance. He noted that the rate of new integrated projects in China is higher than its historical average, fueled in part by greater wood availability. Abreu also addressed the issue of market profitability, asserting that roughly 25% of global pulp production is operating at or below cost. He framed this as an opportunity for lower-cost companies like Suzano to increase their market share.
Abreu also highlighted Suzano’s innovative approach with Eucafluff, a product derived from eucalyptus fiber. He anticipated a fourfold increase in the company’s production capacity for this product with the addition of new capacity planned for November. This organic growth in the fluff market represents an effort to meet rising demand for sustainable products and capitalize on the “fiber-to-fiber trend,” where short fibers like eucalyptus are increasingly being used in place of traditional long fibers.
A highlight of the conference was a fireside chat with Alvaro Jose Henao, President and CEO for Latin America at the newly merged Smurfit WestRock. With 37 years of experience in the industry, Henao provided insights into the company’s post-merger strategy and its deep roots in the region. He acknowledged the turbulent macroeconomic and political environment but stressed that the company, with its long history in Latin America dating back to the 1940s, is accustomed to such dynamics.
Henao’s focus is on extracting value from existing assets rather than simply chasing volume, a common theme among leaders at the conference. He emphasized that the Smurfit WestRock merger provides a “huge global reach” and an opportunity to maximize the combined strengths in both recycled and virgin paper. He also underscored the company’s commitment to community development and innovation, citing local examples in agricultural packaging and lightweighting that influence their global strategy. Henao’s core message was that purpose-driven leadership, which includes investing in local communities, is key to retaining talent and achieving long-term business success.
The industry’s resilience in the face of geopolitical and regulatory challenges was also a major talking point. The imposition of US tariffs and the impending EU Deforestation Regulation (EUDR) were discussed as sources of market uncertainty.
Cavanagh stated that Brazilian pulp exports are well-positioned to navigate these challenges, adding that producers who can demonstrate EUDR compliance will be in a favorable position to command a price premium for their products.
The conference concluded with a collective sense of cautious optimism. While challenges remain, the industry’s key players are strategically planning for a future defined by shifting costs, new regulations, and the ever-present need for efficiency and innovation.
Want more insights like this? Find out more about the Fastmarkets Forest Products North America and International Containerboard Conference 2025, taking place in Miami from October 14-16, 2025.