Suzano, the world’s largest pulp producer, stated on June 2nd that compared to its nominal and historical production capacity, it is expected that commercial pulp production will decrease by about 4% in 2023.

Suzano stated that its decision to reduce production was made in response to the current complex pulp market, and continuing to adhere to the original production cannot bring sufficient returns to the company.

Suzano’s commercial pulp production capacity is approximately 10.9 million tons per year. According to Suzano’s 2022 report, the company produced approximately 10.6 million tons of commercial pulp in 2022.

According to calculations, Suzano will reduce its pulp production by 400000 to 450000 tons in 2023, accounting for 1% of global pulp supply. Suzano’s reduction in production will to some extent support the price of commercial pulp, but with the continuous production of new broadleaf pulp projects, it will be difficult to solve the problem of oversupply in the broadleaf pulp market in 2023 and 2024.

According to publicly available information, over 4 million tons of new pulp production capacity will be put into operation globally in 2023, and Suzano will have an additional 2.6 million tons of production capacity from the ongoing Cerrado project in 2024.