Manufacturer Announces increase of up to 8%

Brazilian manufacturers of cardboard are announcing price increases of up to 8% for table valid from August, in the wake of high input costs, especially for electricity. In a statement, the third largest manufacturer of Ibema cards nationwide, confirmed the movement.
According to industry sources, Suzano Papel e Celulose and Klabin would be evaluating the implementation of the increase. Sought, Suzano has not delivered an opinion on the subject. Klabin, already a market leader, reaffirmed that doesn't talk about prices.
Second Ibema, three line items will be adjusted between 6% and 8% from August. "The increase accompanies the movement of the paper-card industry, which feels cost pressures with a sharp increase in the prices of energy and other inputs to manufacturing," said.
The last rate increase announced by the company, of 12%, occurred in September 2013. According to the President of the Ibema, Nei Senter Martins, the further increase in transfers only a portion of the increase in costs, which are pressed by the high prices of inputs.
"This strategy of partial pass-through occurs because the market cannot absorb the needs of industry. The market is difficult, the consumption is controlled and material stocks are high, both in graphical end users ", said to the value, in an interview by e-mail.
In a teleconference with analysts, on 12 may, the business unit Director of the Suzano papel e celulose, Carlos Aníbal, stated that there was no new rate forecast at that time. "The increases in the first quarter were implemented and there may be some residue still in the second quarter. But there is no expectation, in this moment, reset again, "he said.
In a report accompanying the balance of the first quarter, Suzano reported that the average net price of the card stock was at $ 2,940 per tonne in the range, 16.3 percent of checked a year earlier and 3.9 percent higher than the fourth quarter, considering the domestic and foreign markets. Just looking to the domestic market, a tonne of cardboard was traded on average by $ 3,088, 11.2% above the average price of a year earlier and 6.4% higher than the R $ 2,902 in the fourth quarter. The cards segment represented 12% of the quarterly net revenue of Suzano Papel e Celulose, which was r $ 1.4 billion.
Klabin already reported that sales of cards decreased 2% in the first quarter, compared to the previous year, to 161 million pounds, "mainly due to the need for training of stocks prior to prolonged stoppage of the machine of 9 cards for modernization", which takes place this month. The area of cards represented 35% of the company's quarterly net revenues of r $ 1,203 billion.