Financial Data and Key Metrics Changes - West Fraser Timber Co. Ltd. reported an adjusted EBITDA of negative $144 million for Q3 2025, indicating continued operation within an extended cycle trough [3][4] - The lumber segment's adjusted EBITDA was negative $123 million, a significant decline from $15 million in Q2 2025, primarily due to lower pricing and a $67 million duty expense [6][8] - Cash flow from operations was $58 million, with a net cash balance of $212 million, down from $310 million in the previous quarter [9] Business Line Data and Key Metrics Changes - The North America EWP segment posted negative $15 million in adjusted EBITDA for Q3 2025, down from $68 million in Q2, driven by lower OSB pricing [6] - The pulp and paper segment reported negative $6 million in adjusted EBITDA, compared to negative $1 million in Q2, largely due to a maintenance shutdown [7] - The Europe business generated $1 million in adjusted EBITDA, similar to the $2 million reported in the previous quarter [8] Market Data and Key Metrics Changes - U.S. housing starts averaged 1.31 million units annually through August, reflecting stable but uninspiring levels of new home construction [4] - The company noted subdued demand in repair and remodeling, continuing a trend observed in previous quarters [4] Company Strategy and Development Direction - The company has removed 820 million board feet of capacity, approximately 12% of its lumber capacity, to optimize its asset portfolio and create a more resilient business [11][12] - West Fraser aims to maintain a flexible operating strategy to meet customer needs while focusing on cost reduction and safety [12][13] - The company plans to continue a balanced capital allocation strategy, investing in value-enhancing projects and pursuing opportunistic growth [13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by macroeconomic conditions and shifting trade policies but expressed confidence in the company's strong financial position to navigate these difficulties [11] - The company remains optimistic about the long-term prospects for the industry despite a challenging year-to-year outlook [16] Other Important Information - The U.S. Department of Commerce announced final combined duty rates of 26.5% for softwood lumber, with West Fraser having the lowest duty rate in the Canadian industry [10] - The company confirmed its 2025 capital expenditure guidance range of $400 to $450 million [9] Q&A Session Summary Question: Approach to managing production in a tough market - Management emphasized actions taken early in the cycle, including mill closures and adjustments to shift configurations, to remain nimble in production management [18][19] Question: Implied Q4 operating rate for OSB - The implied operating rate for OSB in Q4 is expected to be around 80%, with maintenance shutdowns strategically scheduled during this weaker seasonal period [20][21] Question: M&A opportunities in the current down cycle - Management reiterated a quality-first approach to M&A, emphasizing the importance of asset quality and the company's flexibility to pursue growth opportunities [22][24] Question: Federal support for the lumber industry - Management noted ongoing discussions with the government regarding support measures for the lumber industry, but specific details were not disclosed [28][29] Question: Inventory levels in the U.S. channel - Management indicated that their own inventory levels are intentionally lean, but they do not have visibility into customer inventory levels [30][32] Question: Conditions in the Canadian market - The Canadian market remains competitive, but it does not drive demand as significantly as the U.S. market [44][45] Question: Capital expenditures outlook for 2026 - Management indicated that they will provide 2026 capital expenditure guidance in February, noting that they have been busy with major projects [47] Question: State of the Caribou Pulp facility - The Caribou Pulp facility has been repaired and is back up and running after a recent incident [48]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - The price of ethylene glycol continued to decline this week. Although the fundamentals of ethylene glycol have not undergone significant adjustments, the intensification of Sino - US trade frictions has led to a significant increase in market risk - aversion sentiment. Polyester demand shows no outstanding performance, with stable operation and neutral pick - up. Yulong Petrochemical's supply has gradually entered the market, resulting in sufficient on - site spot liquidity. - Next week's prediction: On the cost side, the bearish fundamentals of crude oil will continue to suppress price performance and limit the rebound and repair space, with overall fluctuations. On the supply side, the operation rate remains high, but as coal prices rise and squeeze profits, the coal - based operation rate may decline later. On the demand side, the domestic market demand remains strong, but the issuance of new export orders is slow, and the weaving market lacks confidence in the future market. In terms of port inventory, there are more ethylene glycol vessel arrivals this month, the polyester operation rate is relatively stable, and the downstream pick - up volume from ports remains neutral. - Overall, it is expected that ethylene glycol will operate at a low level, in the range of 3950 - 4100 yuan/ton, and it is recommended to stay on the sidelines [6]. 3. Summary by Relevant Catalogs 3.1盘面及现货情况 (Disk and Spot Conditions) - **Disk Trend**: Continued to decline. This week, the trading volume was 751,900 lots, and the open interest was 340,400 lots (- 87,000 lots). The closing price of the MEG main contract on October 20 was 4003 yuan/ton, a decrease of 108 yuan/ton compared to the closing price of 4111 yuan/ton on October 13, with an overall change of - 2.63%. The settlement price on October 20 was 4030 yuan/ton, a decrease of 82 yuan/ton compared to the settlement price of 4112 yuan/ton on October 13, with an overall change of - 1.99% [8][12][14]. - **Spot Market**: For domestic spot, the higher transaction price was 4196 (October 13), and the lower transaction price was 4071 (October 17). From October 12 - 18, the weekly price data showed that in Fujian it was 4171 yuan/ton (- 59), in Zhangjiagang it was 4130.5/ton (- 27.83), and in Dongguan it was 4171 yuan/ton (- 59). The foreign - market price was 488.2 US dollars/ton (- 3.47). This week's average basis was 91 yuan/ton, compared with last week's average of 90.33 yuan/ton. The domestic and foreign markets of ethylene glycol remained inverted, with an overall level of 70 - 100 US dollars/ton [15]. 3.2 MEG装置、库存及生产利润情况 (MEG Device, Inventory, and Production Profit Situation) - **Device Operation Rate**: The overall operation rate from October 14 - 20 was 70.93%, compared with 70.22% from October 9 - 13. The oil - based operation rate was 76.31%, the coal - based operation rate was 62.95%, and the methanol - based operation rate was 62.43%. There were various device changes during the week, including maintenance of Zhonghai Shell and Tongliao Jinmei devices, restart of Satellite, Tianye, Guoneng Yulin, and Meijin devices, and Yulong Petrochemical's device resumed operation after a short - term shutdown. Hengli and Far Eastern Union slightly increased their device loads [19][22][24]. - **Production Profit**: Due to the significant rebound in thermal coal prices, the profit of coal - based ethylene glycol production has dropped significantly. The current profits of MTO, coal - based, and ethylene - based production routes are - 1687.74 yuan/ton, 90.26 yuan/ton, and - 124.34 US dollars/ton respectively, compared with the previous period's - 1607.16 yuan/ton, 261.94 yuan/ton, and - 122.23 US dollars/ton [31][33]. - **Port Inventory**: As of October 16, the MEG port inventory was 475,500 tons, an increase of 70,000 tons compared with the previous period, with a month - on - month change of 15.51%. Among them, Zhangjiagang had 194,500 tons (an increase of 9,000 tons), Jiangyin had 60,000 tons (an increase of 10,000 tons), Taicang had 136,000 tons (an increase of 71,000 tons), Ningbo had 82,000 tons (an increase of 2,000 tons), and Shanghai and Changshu had 3,000 tons (a decrease of 22,000 tons). The polyester operation load was generally stable, and the port pick - up was neutral [35][37][38]. 3.3 Fundamental Analysis - **Cost Side**: Oil prices still lack substantial positive factors, and the bearish fundamentals will continue to suppress price performance and limit the rebound and repair space. The polyester operation rate has a narrow fluctuation range, and there is no new production capacity in the market, so the market supply is mostly stable [44][46]. - **Polyester Product Situation**: The average weekly load of polyester factories was 89.38%, and the average weekly load of Jiangsu and Zhejiang looms was 68.22%. The market average prices of semi - bright POY150D/48F, DTY150D/48F, and FDY150D/96F were 6571 yuan/ton, 7804 yuan/ton, and 6754 yuan/ton respectively, down 1.47%, 0.82%, and 1.13% compared with the previous period. The average price of polyester staple fiber in the East China market this period was 6326 yuan/ton, down 93 yuan/ton or - 1.45% compared with the previous period. The negotiation range of polyester bottle chips in the East China region was 5600 - 5730 yuan/ton, with an average price of 5710.00 yuan/ton this week, down 2.14% compared with the previous period [48]. - **Weaving Market**: New export orders are issued slowly, and the weaving market lacks confidence in the future market. With the drop in temperature in the north, the online sales of autumn and winter textile and clothing have accelerated, driving the sales of thick fabrics such as autumn and winter fleece and woolen fabrics. The operating rates of warp - knitting enterprises have steadily increased. As of October 16, the operating rates of water - jet looms in Wujiang, Changxing, Xiaoshao, and the warp - knitting operating rates in Haining and Changshu have shown different changes [52][54]. - **Polyester Downstream**: The raw material inventory of polyester downstream is at a low level, and the rigid demand is gradually increasing. From October 13 - 17, the average weekly polyester sales were estimated to be 70%. The filament production enterprises have continued to accumulate inventory, and the end - of - month shipment pressure is gradually increasing. As of October 16, the filament inventory decreased, with the average inventory days of POY, FDY, and DTY being 16.80 days, 26.10 days, and 31.50 days respectively [55][57][59].

Group 1 - The global LCD TV panel market is experiencing a fragile supply-demand balance due to cooling demand and narrowing supply after the National Day holiday [1] - Panel demand from manufacturers is rationally converging in Q4, as the peak stocking season has passed and brand procurement drivers are weakening [1] - Major manufacturers are implementing production control mechanisms to stabilize supply-demand in the short term, supported by healthy inventory levels [1] Group 2 - For 32-inch panels, demand is cooling but inventory remains healthy, with expected stable average prices from September to October [2] - The 50-inch segment is seeing weakening demand alongside a decline in supply, with average prices expected to remain flat [2] - The 55-inch segment is experiencing rational procurement demand and concentrated supply, with average prices also expected to hold steady [2] Group 3 - The G10.5 production control is significantly impacting supply-demand balance for large-sized panels, with average prices anticipated to remain unchanged [2] - Price ranges for various sizes and resolutions are stable, with no expected changes from September to October [3]

Group 1: Gold Market Analysis - The current price of spot gold is around $3990 per ounce, having reached a historical high of $3990.90 per ounce, driven by expectations of interest rate cuts by the Federal Reserve and ongoing demand for safe-haven assets due to the U.S. government shutdown [1][3] - Despite a recent strengthening of the U.S. dollar, the market anticipates two more rate cuts by the Federal Reserve this year, which may support gold prices [1] - The ongoing U.S. government shutdown and escalating trade and geopolitical tensions continue to sustain demand for gold, limiting its downside potential [1] - Technical analysis indicates that gold is in a bullish trend, with expectations of further price increases, and the recommended trading strategy is to buy on dips [3] Group 2: Oil Market Analysis - The price of West Texas Intermediate (WTI) crude oil is trading around $62.15 per barrel, with a recent rebound influenced by OPEC+'s decision to increase production modestly by 137,000 barrels per day starting in November, which is below market expectations [4] - The market is currently experiencing a supply-demand imbalance, with predictions of oversupply, leading to cautious sentiment among investors [4] - Technical indicators suggest a bearish medium-term outlook for oil prices, with expectations of continued downward movement, while short-term trends may show some upward corrections [5]

Group 1: Steel Industry Report Industry Investment Rating Not mentioned Core View Steel prices are expected to maintain a high - level oscillating trend. The price of rebar is expected to fluctuate between 3100 - 3350 yuan, and hot - rolled coil between 3300 - 3500 yuan. It is recommended to try long positions with light positions and pay attention to the seasonal repair of apparent demand. Short the January spread between hot - rolled coil and rebar [1]. Summary by Relevant Catalogs - **Steel Prices and Spreads**: Rebar and hot - rolled coil prices in different regions have varying degrees of increase or decrease. The spread between hot - rolled coil and rebar continues to converge [1]. - **Cost and Profit**: Steel billet prices increase, and the costs of different steelmaking processes change. The profits of various steel products show a downward trend [1]. - **Output**: The daily average pig iron output increases slightly, the output of five major steel products decreases slightly, rebar output decreases significantly, and hot - rolled coil output increases slightly [1]. - **Inventory**: The inventory of five major steel products increases slightly, rebar inventory decreases seasonally, and hot - rolled coil inventory increases [1]. - **Transaction and Demand**: Building material trading volume and the apparent demand of five major steel products increase slightly, rebar apparent demand increases significantly, and hot - rolled coil apparent demand decreases [1]. Group 2: Iron Ore Industry Report Industry Investment Rating Not mentioned Core View The iron ore market is in a balanced and slightly tight pattern. It is recommended to view it with a bullish bias in a range - bound manner, with the range referring to 780 - 850. It is recommended to go long on the 2601 contract of iron ore when the price is low and conduct an arbitrage strategy of going long on iron ore and short on hot - rolled coil [4][6]. Summary by Relevant Catalogs - **Prices and Spreads**: The basis of different iron ore varieties' 01 contracts decreases significantly, and the spreads between different contracts change [4]. - **Supply**: The global iron ore shipment volume decreases week - on - week, and the arrival volume at 45 ports increases. The subsequent arrival volume is expected to first increase and then decrease [4]. - **Demand**: The daily average pig iron output of 247 steel mills increases slightly, the daily average port clearance volume increases, and the monthly output of pig iron and crude steel decreases [4]. - **Inventory**: The port inventory decreases slightly, the imported ore inventory of 247 steel mills increases, and the number of days of available inventory of 64 steel mills increases [4]. Group 3: Coal Industry (Coke and Coking Coal) Report Industry Investment Rating Not mentioned Core View - **Coke**: It is recommended to go long on the 2601 contract of coke when the price is low, with the range referring to 1650 - 1800, and conduct an arbitrage strategy of going long on coking coal and short on coke [7]. - **Coking Coal**: It is recommended to go long on the 2601 contract of coking coal when the price is low, with the range referring to 1150 - 1300, and conduct an arbitrage strategy of going long on coking coal and short on coke [7]. Summary by Relevant Catalogs Coke - **Prices and Spreads**: The prices of coke contracts decrease, and the basis changes [7]. - **Supply**: Due to previous price increases, coking profits are still available after two rounds of price cuts, and northern coke enterprises have high enthusiasm for resuming production [7]. - **Demand**: Steel mills continue to resume production, and iron water output continues to rise slightly, providing support for downstream demand [7]. - **Inventory**: Coking plants reduce inventory, while steel mills and ports increase inventory, and the overall inventory increases moderately [7]. Coking Coal - **Prices and Spreads**: The prices of coking coal contracts decrease, and the basis changes [7]. - **Supply**: Main - producing area coal mines resume production, logistics recovers, and sales improve after price cuts. Imported coal prices follow futures fluctuations [7]. - **Demand**: Iron water output continues to rise, coking operations remain stable, and downstream replenishment demand increases [7]. - **Inventory**: Coal mines, ports, and steel mills reduce inventory, while coal - washing plants, coking plants, and ports increase inventory, and the overall inventory increases moderately [7].

1. Report Industry Investment Ratings - No industry investment ratings are provided in the reports [1][3][5] 2. Core Views - **Steel Industry**: Steel apparent demand remains at a low level in the off - season without signs of recovery. There is an expected increase in apparent demand during the peak season from August to September, and inventory accumulation will slow down. Steel supply - demand has not deteriorated to the negative feedback stage. Steel prices will follow the expected changes in the coking coal supply side. For the January contract, pay attention to the support level of 3100 for rebar and 3300 for hot - rolled coils [1] - **Iron Ore Industry**: The global iron ore shipment volume has decreased significantly, and the arrival volume at 45 ports has declined. The subsequent arrival volume is expected to first increase and then decrease. Steel mill profit margins have slightly declined, but after major events, iron ore production will increase this week, and steel mills' replenishment demand will rise. It is expected that supply and demand will increase simultaneously this week. Port inventory has slightly increased, and steel mills' equity ore inventory has decreased. Due to high steel mill profitability, iron ore production in September will remain at a relatively high level, and low port inventory provides support for iron ore. Pay attention to steel mill production control in the fourth quarter. Iron ore is currently in a balanced and tight pattern, and it is recommended to go long on the 2601 contract on dips and reduce the position of the long - iron - ore short - coking - coal arbitrage [3] - **Coking Coal and Coke Industry**: Coking coal futures showed a volatile decline, with intense price fluctuations. Spot auction prices were stable to weak, and Mongolian coal quotes were weak. Domestic coking coal auctions have weakened, and downstream procurement willingness has decreased. After the lifting of production restrictions, coal mines in major producing areas are resuming production, and market supply - demand has eased. Coke futures showed a volatile rebound, and after the first round of price cuts in coke spot, it remained stable. The supply of coke will gradually become more abundant, with an expected 2 - 3 rounds of price cuts. For both coking coal and coke, it is recommended to take profit on short positions, treat the market with a volatile view, and reduce the position of the long - iron - ore short - coking - coal/coke arbitrage [5] 3. Summary by Relevant Catalogs Steel Industry Steel Prices and Spreads - Rebar and hot - rolled coil spot prices in different regions decreased by 10 yuan/ton, and most futures contract prices also declined [1] Cost and Profit - Steel billet prices decreased by 10 yuan/ton, while slab prices remained unchanged. Some steel product costs and profits changed, such as the cost of Jiangsu electric - arc furnace rebar increasing by 1 yuan, and North China hot - rolled coil profit increasing by 20 yuan [1] Production - Daily average pig iron production decreased by 11.1 to 229.0 (a 4.6% decline), and the production of five major steel products decreased by 24.0 to 860.7 (a 2.7% decline) [1] Inventory - The inventory of five major steel products increased by 32.8 to 1500.7 (a 2.2% increase), and the inventory of rebar and hot - rolled coils also increased [1] Transaction and Demand - Building material trading volume decreased by 0.8 (an 8.3% decline), and the apparent demand for five major steel products decreased by 29.9 to 827.8 (a 3.5% decline) [1] Iron Ore Industry Iron Ore - Related Prices and Spreads - The warehouse receipt costs of various iron ore types decreased slightly, and the basis of the 01 contract for some types increased significantly. The 5 - 9 spread increased by 2.5 (a 3.6% increase), and the 9 - 1 spread decreased by 2.5 (a 5.6% decrease) [3] Supply - The arrival volume at 45 ports decreased by 78.0 to 2448.0 (a 3.1% decline), and the global shipment volume decreased by 800.6 to 2756.2 (a 22.5% decline) [3] Demand - The daily average pig iron production of 247 steel mills decreased by 11.3 to 228.8 (a 4.7% decline), and the national crude steel monthly output decreased by 352.6 to 7965.8 (a 4.2% decline) [3] Inventory Changes - The inventory at 45 ports increased by 24.3 to 13849.65 (a 0.2% increase), and the imported ore inventory of 247 steel mills decreased by 67.3 to 6686.8 (a 0.7% decline) [3] Coking Coal and Coke Industry Coking Coal and Coke - Related Prices and Spreads - Coke futures showed a volatile rebound, and coking coal futures showed a volatile decline. The first - round price cut of coke spot has been implemented, and coking coal spot auction prices are stable to weak [5] Supply - The weekly coke production of the full - sample coking plants decreased by 0.2 to 64.3 (a 0.34% decline), and the raw coal production of Fenwei sample coal mines decreased by 43.1 to 817.3 (a 5.0% decline) [5] Demand - The weekly iron ore production of 247 steel mills decreased by 11.3 to 228.8 (a 4.7% decline), and the weekly coke production of the full - sample coking plants decreased by 0.2 to 64.3 (a 0.34% decline) [5] Inventory Changes - Coke inventory in coking plants and steel mills increased slightly, and port inventory decreased. Coking coal inventory in coal mines, coal - washing plants, coking plants, and steel mills decreased, while port and border - crossing inventory increased slightly [5]

Core Insights - The report from the China Coal Transportation and Marketing Association indicates that the coking coal market has halted a nearly one-and-a-half-year decline as of July 2025, with both futures and spot prices rebounding from their lows [1] - The market is characterized by a "three up, one down, one stable" trend, where futures prices lead spot prices, spot prices lead long-term contracts, and coking coal prices lead steel and coke prices [1] - The overall market sentiment is stabilizing, supported by a decrease in production inventories and various driving factors such as supply changes, rigid demand, speculative stockpiling, and policy sentiment [1] Market Dynamics - The report anticipates that in August 2025, the coking coal market will continue to experience upward momentum due to multiple driving factors, despite potential limitations on price increases from the resumption of previously halted coal mines and stable imports [1] - Mid-month production cuts or suspensions due to safety inspections and deteriorating geological conditions are expected to provide significant support to the market [1] - The current price increases are primarily based on expectations of supply contraction and improved market sentiment rather than substantial improvements in downstream demand [1] Future Outlook - The overall market is in a phase of rebalancing supply and demand, seeking direction amid the current conditions [1] - The strength of the coking coal macro index remains weak and stable, indicating that the sustainability and intensity of the rebound will require careful policy support [1]

Group 1 - The core viewpoint of the article indicates that the price of polysilicon is experiencing slight increases due to cost support, despite a slight decrease in transaction volume [1][2] - The transaction price range for n-type polysilicon is reported to be between 45,000 to 49,000 yuan per ton, with an average price of 47,400 yuan per ton, reflecting a week-on-week increase of 0.42% [1] - The transaction volume of polysilicon has slightly decreased, but the number of signing companies has increased to six, with some companies maintaining prices while others raised prices by 1 yuan per kilogram [1] Group 2 - The number of polysilicon producers remains at nine, with an expected domestic production of 125,000 tons in August and a potential increase to around 140,000 tons in September [2] - To alleviate supply-demand pressure, some silicon material companies are planning coordinated production cuts, which may stabilize output in September [2] - The current market pricing is approaching a temporary high point, with prices expected to stabilize unless there are significant changes in industrial policy or terminal demand [2]

Core Viewpoint - The domestic futures market for non-ferrous metals shows mixed performance, with industrial silicon futures experiencing a significant decline of 2.36% to 8695.0 CNY/ton [1] Supply Side - The supply of industrial silicon is expected to increase as the hydropower season progresses in the southwest region, leading to a rise in production from silicon factories [1] - New furnace installations in Sichuan and Yunnan are on the rise, with expectations of a week-on-week production increase in the southwest region [1] - In Xinjiang, while some large factories maintain stable production, smaller silicon plants are less motivated to resume production due to low profit margins from previous low prices, resulting in overall stable production levels [1] Demand Side - There is an anticipated significant increase in the production of polysilicon in August, which will boost demand for industrial silicon [1] - The aluminum alloy sector is operating steadily, while demand remains relatively average; organic silicon also has production increase expectations [1] - Despite a continuous decrease in standard warehouse receipts, the overall industry inventory remains at a high level [1] Market Overview - The overall supply of industrial silicon is expected to increase, leading to a relatively balanced supply-demand situation in the short term, although there is still pressure on inventory absorption [1] - Market sentiment has slightly diminished, but related products like coking coal have seen significant price increases, providing support for the lower end of the market [1] - The main contract is expected to experience range-bound fluctuations in the near term, with recommendations to short on rebounds [1]

Financial Data and Key Metrics Changes - The company reported that sales, operational cash generation, and EBITDA were in line with expectations for the quarter [10][11] - Net debt remained stable at $13 billion, with net leverage increasing to 3.1 times due to a reduction in last twelve month EBITDA to $4.2 billion [28][29] - Cash costs declined compared to the first quarter, driven by stronger operational performance and lower fixed costs [25][26] Business Line Data and Key Metrics Changes - Brazilian operations saw stronger sales volumes and lower costs compared to Q1, with EBITDA growth year-over-year [12][13] - U.S. operations experienced a 3% price increase quarter-over-quarter, driven by product mix and better commercial location [13] - The paper and packaging business in the U.S. is expected to deliver positive EBITDA in Q3, with lower costs and higher production volumes anticipated [16][58] Market Data and Key Metrics Changes - In Brazil, print and write demand rose 6% year-over-year, with domestic sales also increasing by 6% [14] - Uncoated wood free paper demand remained stable in North America and Latin America but declined by 10% in Europe [14] - The U.S. market for boxboard demand was stable, while demand for SBS boards increased by 1% [15] Company Strategy and Development Direction - The company is focusing on competitiveness and cost reduction, with an emphasis on executing existing deals rather than pursuing new M&A initiatives [10][11] - A deal with Eldorado is expected to provide an internal return of around 20%, allowing for increased production at the Ribba's mill without significant investment [6][42] - The company plans to maintain a focus on deleveraging and improving operational competitiveness [10][88] Management's Comments on Operating Environment and Future Outlook - Management noted that the cash cost trend is expected to continue decreasing in the upcoming quarters [10][25] - The company is monitoring market dynamics closely, particularly in light of recent price corrections and supply-demand imbalances [22][72] - Management expressed confidence in the recovery of order intake in China and the potential for price increases due to supply constraints [22][23] Other Important Information - The company has built inventories in the U.S. to mitigate the impact of 50% import duties imposed by the U.S. government [17] - The company is planning to redirect the majority of its exports from the U.S. to other regions [17] - The company maintains a healthy amortization schedule with more than six years of average maturity [28] Q&A Session Summary Question: What are the changing dynamics in the pulp scenario that allowed for the $20 price increase for Asia? - Management noted high order intake levels in China since June, indicating a supportive market environment for price increases [32][34] Question: Can you elaborate on the internal rate of return of the deal with Eldorado? - The internal rate of return is expected to be around 20%, driven by optimized harvesting and reduced operational costs [40][42] Question: What is the expected normalized production level if pulp prices remain below $550 per ton? - The company has a detailed analysis on production costs and has decided to reduce production to maintain profitability [46][47] Question: What are the main opportunities identified in the U.S. packaging market? - The company is expanding its market reach and has seen significant growth in cup stock sales, indicating strong opportunities for profitability [60] Question: How are negotiations regarding the 10% tariff on U.S. exports going? - The company successfully negotiated that customers will bear the 10% tariff, ensuring that Suzano will not absorb this cost [97] Question: What is the status of the Kimberly Clark acquisition? - Dedicated teams have been established to plan the carve-out of the new joint venture, with the project progressing as planned [98]