Klabin sees paper market favorable to price increases By Reuters

SÃO PAULO (Reuters) – Klabin (BVMF:) sees positive conditions in the packaging markets in Brazil and abroad in the coming months, and also has the prospect of implementing pulp price adjustments in May, company executives said this Friday. fair.

In kraftliner, the company has an order book equivalent to 8 weeks — almost double the level of a few months ago –, said Klabin’s commercial director of securities, José Soares, in a conference with analysts.

“There are signs of a generalized improvement in demand that is providing conditions for us to think about a second round of price increases,” said the executive, citing that the first, at the beginning of the year, was driven by costs. “The picture is quite favorable,” he said.

At 1:39 pm, Klabin units showed a drop of 0.26%, quoted at 23.21 reais, while showing a positive variation of 1.5%.

Klabin announced the day before a 64% drop in net profit for the first quarter compared to the same period last year, but presented operational performance within what the market expected.

“Klabin reported good numbers in the first quarter, given the good performance of all operating segments, which translated into a more balanced consolidated result than in previous quarters, when only the cellulose business had been the main positive highlight”, BB Investimentos analysts stated in a note to clients.

The company began operating its new corrugated cardboard factory in Piracicaba (SP) on Monday, with plans to produce 70 thousand tons of the material this year.

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Asked about future projects, Klabin’s executive president, Cristiano Teixeira, stated that for now the company’s focus is on carrying out the gradual activation of new equipment, the so-called “ramp-up”, until they reach full capacity.

“The absolute focus is on the ramp-up of machine 28 (in Paraná), on the effective use of the corrugated cardboard ramp-up (in São Paulo)”, he stated. “We continue to seek greater forestry efficiency… The time, in fact, is to focus on the company, there is nothing proposed and there is no plan to take anything to the board of directors at this time”, he added.

In cellulose, the director of the area, Antônio Nicolini, stated that buyers in China are having difficulties with supply restrictions due to problems in the global logistics chain.

The situation differs from mature markets such as North America and Europe, where the executive stated that they continue to perform “well above expectations”.

“The numbers for the second quarter are very positive, above what Klabin can supply with eucalyptus,” said Nicolini.

(By Alberto Alerigi Jr.)