Suzano (SUZ) Shares Plunge 1.64% Amid Pulp Price Volatility, Institutional Selling, U.S. Tariff Fears

Suzano (SUZ) shares slid 1.64% on Wednesday, marking a third consecutive day of declines and a cumulative drop of 5.46% over three trading sessions. The stock touched its lowest level since July 2025 during intraday trading, with a 2.30% swing underscoring growing investor unease.

The sell-off reflects a confluence of sector-specific pressures and shifting institutional sentiment. Institutional investors, including Perpetual Ltd, have reduced stakes in Suzano, signaling caution amid a fragile pulp and paper industry landscape. Analysts highlight structural challenges such as volatile pulp prices, rising production costs, and regulatory headwinds, which have eroded margins for Suzano and peers like Smurfit Westrock. Recent earnings reports revealed mixed signals, with Q2 2025 profits bolstered by currency tailwinds but recent pulp price declines tempering optimism about sustained profitability.

Geopolitical risks further amplify uncertainty. A potential resurgence of U.S. tariffs on Brazilian exports, including pulp and paper, has raised concerns about export volumes and margins. Suzano’s exposure to international markets, coupled with currency volatility, complicates its cost structure and debt servicing, given its significant dollar-denominated liabilities. The company’s efforts to deleverage through refinancing and cost-cutting measures have been noted, but these initiatives often come at the expense of near-term growth investments or dividend payouts.

Strategic initiatives like the Cerrado Project, aimed at enhancing sustainable forestry, remain long-term value drivers. However, delays and high capital expenditures have dampened near-term returns. Suzano’s collaboration with Sofidel on Amazon biodiversity protection underscores its ESG commitments but also highlights regulatory risks tied to its operations. Analysts remain divided, with some praising its operational efficiency while others question its valuation given high debt levels and sector-wide challenges. This duality in sentiment contributes to the stock’s volatility as investors weigh long-term sustainability against immediate headwinds.