Protests against rising fuel prices have ground Brazil's economy to a halt, disrupting supplies and operations at many a pulp and paper mill in the country.
The week-long strike staged by truck drivers in Brazil has paralysed large sections of the country's economy, creating serious difficulties for pulp and paper manufacturers. Hundreds of roadblocks in the country have created serious supply bottlenecks, curtailed traffic and interrupted production, several companies from the sector report.
Major producers like Suzano Papel e Celulose, Eldorado Brasil Celulose, CMPC Celulose Riograndense, Fibria Celulose or Klabin are hit by the strike to a different extent and are trying to manage and mitigate the effects of the blockade. Nevertheless, numerous pulp and paper mills have been forced to downscale or wind down production for lack of wood or auxiliary materials. Especially supply of chemicals appears to be a serious problem. Also, finished goods are hardly moved.
Over 80% of goods distribution in Brazil takes place by road. Loading of several containers of pulp for overseas shipment has been postponed as well, according to EUWID market sources.