The Fastmarkets Forest Products Latin America Conference 2026 concluded in São Paulo on 12 August, gathering more than 50 speakers and around 400 industry participants over two days. Discussions ranged from China's growing influence on global fiber markets to climate risks, investment strategies and the long-term competitiveness of Latin America's forest products sector.
Brazil's structural advantages remain intact despite concerns over BEK pulp overcapacity, according to Suzano CEO Beto Abreu, who pointed to the country's productive forests, land availability, logistics and scale. The company is now focused on extracting value from recent investments through technology and operational efficiency.
China's expanding domestic production will reshape trade flows and slow the growth of its market pulp demand, Bracell CEO Praveen Singhavi said, though he added that Latin America's forest productivity, mill efficiency and logistics still give the region a strong competitive base.
Growth outlook and strategy shifts
Projections of stagnant Chinese pulp imports were challenged by Arauco CEO Cristian Infante, who cited rising per-capita consumption and wood supply constraints in China. He argued that low-cost, efficient producers will lead the next phase of growth — a rationale underpinning Arauco's Sucuriú hardwood pulp mill project in Brazil.
A more cautious approach is being taken at Klabin, whose CEO Cristiano Teixeira said the company sees no current investment opportunities offering adequate returns and will prioritise deleveraging and premium, softwood-fiber-differentiated products over expansion.
Rising Asian wood costs should put a floor under hardwood pulp prices, according to Eldorado Brasil chief commercial officer Rodrigo Libaber, who said the sector's main challenge now is restoring profitability across the value chain rather than further price declines.
Confidence in the Natureza BEK mill project in Brazil was reaffirmed by CMPC, which pointed to cost leadership, operational efficiency, diversification and its Softys tissue and packaging businesses as buffers against regional and geopolitical volatility.
Margin pressure from rising logistics costs and freight rate changes was a key concern for recycled paper producers, though participants remained confident in long-term demand for recycled packaging grades.
Geopolitical uncertainty and climate risk emerged as recurring themes across the conference, prompting increased investment in logistics, forestry genetics and supply chain flexibility to build resilience.
Next stop – Chicago, for the Forest Products North America and International Containerboard Conference 2026, taking place November 2-4, 2026.