Suzano will readjust prices in 12.7%

After the price increase between 12% and 14% of Papirus and Ibema starting in October, Suzano Papel e Celulose, the second biggest Brazilian manufacturer of card stock, will also readjust your table of values, however in November. The statement about the increase, obtained by Value, was forwarded to clients by the SPP-KSR, the Suzano paper Distributor.
"Preserving the ethical and transparent, inherent in the relationship between the SPP-KSR and its customers, we inform you that from the month of November 2013 there will be a readjustment of 12.7% in the prices of paper products-Suzano's card," says the notice.
With an installed capacity of 250 thousand tons per year of card stock, Suzano has confirmed, through the press, the price increase. Since the beginning of the month there was expectation that the company and the largest national manufacturer Klabin, cardboards, announced readjustments. Sought, Klabin also informed via Press Office, which did not comment on market values.
Ibema, third largest national producer of card stock, had already notified its customers an increase of 12% for product prices, starting in October, according to the company's commercial Director, Jorge Grandi. "The recent pressures on the costs of raw materials, inputs general manufacturing and labor force the readjustment of 12% in the prices of the product line," the company said in a statement. "After analysis of profitability, was detected a sharp drop in the company's margins, which forced her to recompose the prices," he said.
According to Grandi, collective bargaining and increased costs for raw materials and other inputs for the adjustment. "This is a correction to the cost increases that have already occurred," he said. Ibema designs high 7% to 8% of wages on the basis of bargaining, whose date is October. "I communicate all customers and we believe that there will be accepting [the adjustment]," said the Executive.
For this year, the 5% growth projected Ibema of domestic market of packaging cards. In 2014, the expansion must be between 4% and 5%. "The second half is a little warmer than the first half, but there is no risk of shortages. And that should remain until 2014, "said Grandi.
Ibema produced approximately 90 thousand tons of cardboard in 2012 and must repeat this volume in 2013, once operates near capacity limit. The recipes, however, must rise before the best mix of sales and marketing of larger volumes in the domestic market. "Greater productivity will also contribute to it," he said.
Earlier this month, in an interview with Value, the President of Papirus, Antonio Claudio Salce, stated that the company, the fourth-largest national producer of card stock, had already announced increases of 12.5% to 14% for their products, in an attempt to recompose banks pressed by high costs. Salce explained that the 14% proposed are formed by a high-residue costs that should have been fully passed on since the end of 2012 as the impact of collective bargaining.
Last year, sold Papyrus 73 thousand tons of cardboard and earned revenues of $ 220 million. For 2013, the forecast is to reach 76.5 thousand tons, with gross revenues of $ 255 million. As Salce, the profitability of the company falls short of the desired and with the readjustment of up to 14%, Ebitda margin (earnings before interest, taxes, depreciation and amortization) can approach 20%. The goal, however, is to achieve 25% at some point.
From January to August, according to data from the Brazilian pulp and Paper Association (Bracelpa), domestic demand totaled card around 400 thousand tons, considering domestic sales and imports, compared to approximately 380 thousand tons in the same period in 2012.