Global pulp markets are once again facing upward pressure—this time driven by geopolitics rather than supply shortages.

Brazilian pulp leader Suzano has warned that prices for toilet paper, tissues, diapers, and packaging materials are likely to increase if the ongoing US–Israel conflict involving Iran continues to disrupt global cost structures.

The message is clear:

👉 The impact is no longer confined to raw materials
👉 It is spreading across the entire paper value chain

From Pulp to Everyday Products: Why This Matters

Suzano is not a niche supplier.

As the world’s largest producer of market pulp, it sits at the upstream end of products used by global brands such as:

• Cottonelle
• Kleenex
• Diapers and hygiene products
• Packaging for daily consumer goods

👉 When Suzano signals cost pressure, it typically flows downstream into:

• Retail tissue products
• Hygiene items
• Packaging materials

What’s Driving the Price Pressure

The core issue is not pulp availability—it’s cost escalation across multiple inputs.

1. Energy and Oil Prices

The conflict has pushed oil prices higher, affecting:

• Shipping
• Trucking
• Rail logistics

👉 Fuel is now one of the fastest-rising cost components in the pulp supply chain.

2. Chemicals: The Hidden Cost Layer

Suzano highlighted increasing costs in key pulp production chemicals, including:

• Caustic soda
• Sulphuric acid

👉 These are essential in pulping and bleaching processes, meaning:

Even indirect cost increases can significantly affect total production cost.

3. Logistics Disruptions

Transport routes to the Middle East have become more complex and expensive.

Suzano is now:

• Shipping via the Mediterranean
• Crossing the Suez Canal
• Using costly overland trucking through Saudi Arabia and Jordan

👉 This adds both time and cost to deliveries.

A System-Wide Impact: Not Just Paper

According to Suzano’s regional leadership, the cost increase is affecting:

👉 “the whole system, the whole value chain”

That includes:

• Raw material sourcing
• Production processes
• Transportation
• Distribution

What Happens Next: Inflation Pressure Building

Suzano stopped short of giving a timeline.

But the direction is clear:

👉 If the conflict continues, price increases are likely

And not just in paper products.

Rising costs could contribute to:

• Higher consumer prices
• Broader inflation across essential goods
• Increased pressure on household spending

Energy Reality: Why Pulp Producers Are Still Exposed

Despite being 100% energy self-sufficient at its production sites, Suzano is still affected.

Why?

Because:

👉 Energy independence reduces production cost risk
👉 But does not eliminate logistics fuel exposure

In other words:

Even efficient mills cannot escape global fuel price increases.

Regional Impact: Middle East Market Disruption

Suzano also reported a “significant impact” on its Middle East operations.

This is notable because the company has strong market presence in:

• Dubai
• Abu Dhabi
• Bahrain
• Qatar

👉 Increased logistics complexity + regional instability
= reduced efficiency and higher costs

Industry Insight: A Different Kind of Price Cycle

Unlike previous pulp price increases driven by:

• Supply shortages
• Demand spikes

This cycle is driven by:

👉 Geopolitical cost inflation

That makes it harder to predict and harder to control.

What This Means for the Paper and Converting Industry

For Tissue and Packaging Producers:

• Rising input costs are unavoidable
• Pricing strategies will need adjustment

For Converters:

• Material cost volatility increases risk
• Efficiency becomes more critical than ever

For Buyers and Distributors:

• Expect gradual price transmission
• Inventory and sourcing strategies need review

Final Thought

Suzano’s warning reflects a broader reality:

The paper industry is no longer insulated from global geopolitical shocks

From fuel to chemicals to logistics, cost pressure is becoming systemic.

And when that happens:

👉 Price increases are not a question of “if”
👉 But how fast and how far they will spread

Last Updated on 14/04/2026 by Jota Machinery