Brazil’s Fibria Gains Most in a Month on Pulp Price Outlook
Fibria Celulose SA (FIBR3), the world’s largest pulp producer, gained the most in a month in Sao Paulo trading on speculation that lower inventories will lead to higher prices.
Fibria gained 2.5 percent to 24.88 reais at the 4:15 p.m. New York time close, the most since March 18. Rival Klabin SA (KLBN4) advanced 0.6 percent to 6.33 reais while Suzano Papel & Celulose SA rose 1.2 percent to 14.95 reais.
Global pulp inventories fell to 32 days of supply in March, down from 35 the previous month and lower than the historical average of 33 days, Bank of America Corp. said in an investor note, citing figures from the Pulp and Paper Products Council.
The “data is a positive indication that the pulp market is indeed tighter than expected and we do not rule out further pulp price increases throughout the year,” Thiago Lofiego, an analyst at Bank of America in Sao Paulo, wrote in the April 21 report. Brazilian markets were closed April 21 and 22 for national holidays.
To contact the reporter on this story: Alexander Cuadros in Sao Paulo at firstname.lastname@example.org
To contact the editor responsible for this story: David Papadopoulos in New York at email@example.com