Core Insights - Suzano, the world's largest pulp producer, reported a 20% increase in combined pulp and paper sales, reaching 3.6 million tonnes in Q3 2025 compared to Q3 2024, driven by the new Ribas do Rio Pardo mill and U.S. paper production integration [1] Financial Performance - The cash cost of pulp production decreased by 7% to R$801 per tonne compared to Q3 2024, reflecting a downward trend in production costs and improved competitiveness [2] - Net revenue for Q3 2025 was R$12.2 billion, remaining broadly flat year-over-year, while adjusted EBITDA was R$5.2 billion and operating cash generation was R$3.4 billion, influenced by lower pulp prices and a weaker export exchange rate [3] - Net profit for the quarter totaled R$2 billion [3] Operational Highlights - Suzano Packaging achieved its first positive adjusted EBITDA from U.S. operations acquired in October 2024, indicating successful integration and value generation from the asset base [4] - The company's net leverage in U.S. dollars was 3.3 times at the end of the quarter, with a cash position of US$6.5 billion [4] Management Commentary - The CEO of Suzano emphasized the company's focus on improving competitiveness and cash generation, highlighting the efficiency of the Ribas do Rio Pardo mill and progress in establishing a joint venture with Kimberly-Clark [5]

Core Insights - Mercer International Inc. reported a significant decline in third quarter 2025 Operating EBITDA, posting negative $28.1 million compared to positive $50.5 million in the same quarter of 2024, and negative $20.9 million in the second quarter of 2025 [2][15][36] - The company experienced a net loss of $80.8 million ($1.21 per share) in Q3 2025, a stark contrast to the net loss of $17.6 million ($0.26 per share) in Q3 2024 and a slight improvement from the net loss of $86.1 million ($1.29 per share) in Q2 2025 [2][12][36] Financial Performance - Total revenues for Q3 2025 decreased by approximately 9% to $458.1 million from $502.1 million in Q3 2024, primarily due to lower pulp and manufactured products sales realizations, partially offset by higher lumber sales realizations [13][34] - Costs and expenses increased by approximately 7% to $525.7 million in Q3 2025 from $493.3 million in Q3 2024, driven by higher per unit fiber costs and negative foreign exchange impacts [14][36] - The pulp segment's revenues decreased by approximately 9% to $339.0 million in Q3 2025 from $373.3 million in Q3 2024, with pulp revenues specifically declining by about 10% [18][34] Market Conditions - The decline in pulp market demand and pricing was attributed to persistent global economic uncertainties, fiber scarcity in Germany, and increased pulp substitution [3][6] - Sales realizations for both softwood and hardwood pulp decreased due to lower prices across all markets, with a notable price gap of approximately $200 per ton between softwood and hardwood pulp [6][19] - Lumber sales realizations remained stable in Q3 2025, with expectations for modest price increases in Europe due to higher fiber costs and slightly higher prices in the U.S. driven by duties and tariffs [7][8] Strategic Initiatives - The company is advancing its "One Goal One Hundred" program, targeting $100 million in profitability improvement actions by the end of 2026, with an expectation of realizing approximately $30 million in cost savings by the end of 2025 [4][8] - A carbon capture and sequestration project is being developed at the Peace River mill, which is currently in the conceptual engineering stage, with a pilot expected to be operational in Q4 2025 [5][8] Operational Highlights - In Q3 2025, pulp mills experienced 32 days of downtime, including 20 days of planned maintenance and 12 days of unplanned downtime due to mechanical failure [10][24] - Total pulp production increased by approximately 10% to 458,708 ADMTs in Q3 2025 from 415,837 ADMTs in Q3 2024, attributed to improved production reliability [24][36] - The solid wood segment's revenues decreased by approximately 6% to $117.2 million in Q3 2025 from $125.1 million in Q3 2024, primarily due to lower manufactured products revenues [26][34]

Group 1 - Valmet is initiating change negotiations for temporary layoffs affecting over 950 employees in its Finnish operations, primarily in Jyväskylä, Tikkurila, and Raisio, starting on 10 November 2025 [1][4] - The layoffs aim to align capacity and enhance cost efficiency within the packaging and paper business area and the global supply unit, with implementation planned for the first half of 2026 [2][3] - The negotiations will include all employee groups in the packaging and paper machines unit and the manufacturing unit's machine workshop and foundry in Jyväskylä [3][4] Group 2 - Valmet employs 19,000 people globally, with 6,000 based in Finland, indicating a significant portion of its workforce is affected by the negotiations [4] - The company previously completed change negotiations in 2024 within the board and paper mills business unit in Finland, aimed at enhancing profitability and competitiveness [4]

Core Insights - In times of market volatility, investors are increasingly turning to value investing as a strategy to capitalize on discounted stock prices when others are selling off [1][3] Group 1: Value Investing Strategy - Value investing allows investors to purchase stocks at lower prices during market uncertainty, presenting opportunities for long-term gains [1] - The strategy can lead to "value traps" if not properly understood, where stocks underperform due to persistent issues rather than temporary setbacks [3] Group 2: Importance of PEG Ratio - The PEG ratio, defined as (Price/Earnings)/Earnings Growth Rate, is a crucial metric for value investors, with a lower PEG ratio indicating better value [5] - While P/E ratios alone may not accurately reflect a stock's true value, the PEG ratio helps in assessing intrinsic value [5] - Investors should also consider other parameters alongside the PEG ratio to enhance investment outcomes [6] Group 3: Screening Criteria for Value Stocks - Effective screening criteria for identifying potential value stocks include a PEG ratio lower than the industry median, a P/E ratio below the industry median, a Zacks Rank of 1 or 2, market capitalization over $1 billion, average trading volume exceeding 50,000, and upward revisions in earnings estimates greater than 5% [6] Group 4: Selected Stocks - Fox Corporation (FOX) has a Zacks Rank of 1, a Value Score of A, and a five-year historical growth rate of 12.3% [10] - Flex Ltd. (FLEX) also holds a Zacks Rank of 1, a Value Score of B, and a five-year historical growth rate of 35.1% [12] - Suzano S.A. (SUZ) has a Zacks Rank of 1, a Value Score of A, and a long-term expected growth rate of 52% [14] - Garrett Motion Inc. (GTX) maintains a Zacks Rank of 1, a Value Score of A, and a five-year expected growth rate of 23.1% [15]

Report Summary 1. Investment Rating The provided content does not mention the industry investment rating. 2. Core Views - **Soft Commodity Sector** - **Sugar**: Affected by the gasoline price cut in Brazil, the international sugar price dropped, dragging down the Zhengzhou sugar futures. However, after the release of negative sentiment, marginal positive factors supported the sugar price, and the price rebounded slightly after an over - decline. It is recommended to operate within a range, focusing on the battle at the 5400 level [3]. - **Pulp**: In the third quarter, the domestic economic growth slowed down, dragging down the demand for finished paper. The supply of wood pulp remained high, and the demand for finished paper increased in the peak season, but the price increase was weak. It is recommended to operate with a short - bias on rebounds [4]. - **Offset Paper**: The improvement in demand for finished paper is limited, and the supply pressure may increase. Although the cost provides some support, the price increase is limited. It is recommended to short on rebounds [5][6]. - **Cotton**: Internationally, there are concerns about consumption. Domestically, the new cotton production increase is slightly lower than expected, and the Sino - US trade attitude has eased. However, the continuous positive factors are still insufficient, and it is recommended to reduce short positions [7]. - **Fresh Produce and Fruit Sector** - **Apples**: The new - season apples have smaller fruit sizes and a lower high - quality fruit rate, which supports the far - month contract. It is recommended to consider reverse spreads between the 1 - 5 contracts or hold long positions in the May contract cautiously [8]. - **Red Dates**: The futures price of red dates fluctuated. The inventory removal speed slowed down in October, and the terminal replenishment enthusiasm improved. It is recommended that aggressive investors short the 2601 contract at high levels, and cautious investors hold a reverse spread strategy of short 01 and long 05 [9][10]. 3. Summary by Directory 3.1 First Part: Sector Strategy Recommendations - **Fresh Produce and Fruit Futures** - **Apple 2605**: Adopt a bullish approach, with a support range of 7900 - 8000 and a pressure range of 9500 - 9600, due to the support from smaller fruit sizes and a lower high - quality fruit rate [18]. - **Red Dates 2601**: Short at high levels, with a support range of 10500 - 11000 and a pressure range of 11500 - 12000, considering the overall market sentiment and the weather impact during the production - forming period [18]. - **Soft Commodity Futures** - **Sugar 2601**: Operate within a range, with a support range of 5350 - 5370 and a pressure range of 5470 - 5500, as the spot price is stable, but there are still bearish drivers [18]. - **Pulp 2601**: Short within the range, with a support range of 4900 - 4900 and a pressure range of 5200 - 5300, because of high supply pressure and weak domestic finished paper prices [18]. - **Offset Paper 2601**: Short on rebounds, with a support range of 4100 - 4200 and a pressure range of 4400 - 4500, as the price increase is limited by high supply elasticity during the peak season [18]. - **Cotton 2601**: Hold short positions cautiously, with a support range of 12800 - 13000 and a pressure range of 13600 - 13700, due to insufficient continuous positive factors [18]. 3.2 Second Part: Market News Changes - **Apple Market** - **Fundamentals**: In September 2025, the export volume of fresh apples was about 70,800 tons, a month - on - month increase of 3.50% and a year - on - year decrease of 6.32% [19]. - **Spot Market**: In Shandong, the price of late - maturing bagged Fuji apples was stable, with high - quality goods in short supply. In Shaanxi, the mainstream ordering price was stable, and high - quality goods were mostly pre - ordered. In the sales areas, the arrival volume was low, the sales speed was stable, and the price was stable [19][20]. - **Red Date Market**: The physical inventory of 36 sample points was 9167 tons, a month - on - month decrease of 0.39% and a year - on - year increase of 93.89%. Attention should be paid to the circulation of old - season goods and price changes before the new - season harvest [21]. - **Sugar Market**: On October 22, the settlement price of the ICE raw sugar main contract dropped by 3.05%. Brazil's sugar export volume in the third week of October decreased by 2.68% year - on - year. The domestic spot price of sugar decreased slightly [23]. - **Pulp Market**: Chinese traders counter - offered the price of imported NBSK to $650 per ton, but the sellers refused. The price of broad - leaf pulp increased, and the price of coniferous pulp remained stable and weak. The supply of wood pulp was still high [4][27]. - **Offset Paper Market**: In Shandong, Guangdong, Beijing, and Tianjin, the price of offset paper was stable. The supply increased, and the demand improvement was limited [28][29]. - **Cotton Market**: As of October 20, 2025, the cotton picking progress in Xinjiang was about 67.9%. In August, India's cotton import volume increased by 8.4% month - on - month and 33.9% year - on - year [30]. 3.3 Third Part: Market Review - **Futures Market Review** - **Apple 2601**: The closing price was 8794, a decrease of 0.63% [30][31]. - **Red Dates 2601**: The closing price was 11265, a decrease of 1.01% [30][31]. - **Sugar 2601**: The closing price was 5426, a decrease of 0.22% [31]. - **Pulp 2511**: The closing price was 4854, unchanged [31]. - **Cotton 2601**: The closing price was 13535, a decrease of 0.04% [31]. - **Spot Market Review** - **Apple**: The spot price was 3.75 yuan per catty, unchanged month - on - month and an increase of 0.55 yuan year - on - year [37]. - **Red Dates**: The spot price was 9.40 yuan per kilogram, a month - on - month decrease of 0.10 yuan and a year - on - year decrease of 5.30 yuan [37]. - **Sugar**: The spot price was 5750 yuan per ton, a month - on - month decrease of 20 yuan and a year - on - year decrease of 790 yuan [37]. - **Pulp**: The spot price of Shandong Yinxing pulp was 5550 yuan per ton, unchanged month - on - month and a year - on - year decrease of 700 yuan [37]. - **Offset Paper**: The spot price of Taiyang Tianyang offset paper in Tianjin was 4450 yuan per ton, unchanged month - on - month and a year - on - year decrease of 450 yuan [37]. - **Cotton**: The spot price was 14772 yuan per ton, a month - on - month increase of 44 yuan and a year - on - year decrease of 671 yuan [37]. 3.4 Fourth Part: Basis Situation The content mainly presents relevant basis charts, but no specific text summary information is provided. 3.5 Fifth Part: Inter - month Spread Situation - **Apple**: The 1 - 5 spread was - 513, with a month - on - month decrease of 54 and a year - on - year decrease of 123. It is expected to fluctuate and decline, and it is recommended to short at high levels [56]. - **Red Dates**: The 9 - 1 spread was 125, with a month - on - month increase of 150 and a year - on - year decrease of 240. It is expected to fluctuate within a range, and it is recommended to wait and see [56]. - **Sugar**: The 1 - 5 spread was 43, with a month - on - month increase of 1 and a year - on - year increase of 27. It is expected to fluctuate, and it is recommended to wait and see [56]. - **Cotton**: The 1 - 5 spread was - 40, with a month - on - month increase of 20 and a year - on - year increase of 30. It is expected to fluctuate within a range, and it is recommended to short at high levels [56]. 3.6 Sixth Part: Futures Positioning Situation The content mainly presents relevant positioning charts, but no specific text summary information is provided. 3.7 Seventh Part: Futures Warehouse Receipt Situation - **Apple**: The number of warehouse receipts was 0, unchanged month - on - month and year - on - year [89]. - **Red Dates**: The number of warehouse receipts was 0, unchanged month - on - month and year - on - year [89]. - **Sugar**: The number of warehouse receipts was 8313, a month - on - month decrease of 63 and a year - on - year decrease of 1344 [89]. - **Pulp**: The number of warehouse receipts was 226269, a month - on - month decrease of 141 and a year - on - year decrease of 164017 [89]. - **Cotton**: The number of warehouse receipts was 2565, a month - on - month decrease of 14 and a year - on - year decrease of 1109 [89]. 3.8 Eighth Part: Option - related Data The content mainly presents relevant option charts, but no specific text summary information is provided.

Core Insights - Södra, Sweden's largest forest industry group, has announced the elimination of 200 positions due to restructuring in response to global uncertainty affecting demand and pricing [1][2] - The company cited rapid currency fluctuations, geopolitical uncertainty, and an imbalance between raw material prices and product sales prices as factors negatively impacting profitability [1] Company Actions - The redundancy notices will affect all three of Södra's pulp mills located in Mönsterås, Mörrum, and Värö, as well as its corporate office in Växjö [2] - Södra's president and CEO, Lotta Lyrå, emphasized the need for decisive action to strengthen the company's long-term position while ensuring support for affected employees during the transition [3] Strategic Focus - Södra aims to continue investing in its operations and developing its offerings to provide competitive prices for forest raw materials supplied by its members [3] - The cooperative's mission includes renewing and refining the value of the forest estate, requiring competitiveness across the entire value chain and operations [4] Collaboration and Innovation - Södra has been collaborating with Lenzing since 2011 to develop wood-based textile pulp, with a recent focus on integrating textile recycling into their partnership [5][6] - The partnership aims to produce up to 60,000 tons of product made with 50% recycled cotton and 50% wood pulp, highlighting the importance of sustainable practices in the industry [5]

Core Insights - Kadant Inc. (KAI) has completed the acquisition of Clyde Industries Holdings, Inc. for approximately $175 million in cash, funded through its revolving credit facility [1][8] - The acquisition is expected to enhance KAI's industrial processing offerings and strengthen its position in the pulp and paper, energy, and general industries [3][8] Company Overview - Clyde Industries, based in Atlanta, GA, specializes in boiler efficiency solutions for the pulp and paper industries, employing around 400 people and generating revenues of approximately $92 million for the fiscal year ending February 2025 [2][8] - The integration of Clyde Industries will be part of KAI's Industrial Processing segment, which has experienced a 16.5% year-over-year revenue decline to $95.9 million in Q2 2025 [3][8] Market Performance - Kadant has a market capitalization of $3.5 billion and currently holds a Zacks Rank 3 (Hold) [4] - Over the past three months, KAI's shares have decreased by 9.8%, while the industry has grown by 0.6% [5]

Argentine pulp and paper manufacturer Celulosa files for bankruptcy protection, blaming Javier Milei’s government for creating a bad business environment for local industry. https://t.co/NgdXNRXtkK ...

1. Report Industry Investment Rating - The investment view on pulp is "oscillation", with a trading strategy of "11 - 1 positive spread arbitrage" [4] 2. Core View of the Report - Pulp futures are expected to oscillate due to rising foreign market quotes, low pulp futures valuation, and weak commodity macro - sentiment [4] 3. Summary by Related Catalogs 3.1 PART ONE: Main Views and Strategy Overview - **Supply**: Suzano announced price increases in September 2025, with a $20/ton increase in Asia and an $80/ton increase in Europe and the US. Consecutive increases in foreign market quotes strongly support domestic pulp prices [4] - **Demand**: The monthly output of major finished paper increased, but the prices of mainstream finished paper are at a low level. Some white cardboard and offset paper mills issued price increase letters, and the implementation remains to be confirmed [4] - **Inventory**: As of August 28, 2025, the inventory of mainstream pulp ports in China was 2084,000 tons, a decrease of 48,000 tons from the previous period, a month - on - month decrease of 2.3%, showing a de - stocking trend [4] - **Valuation**: The basis of broad - leaf pulp strengthened to over - 1000 yuan, and pulp futures entered a low - valuation range [4] - **Investment and Trading**: The pulp market is expected to oscillate. The trading strategy is a 11 - 1 positive spread arbitrage, and attention should be paid to commodity macro - sentiment [4] 3.2 PART TWO: Review of Futures and Spot Market - **Futures**: Pulp futures fell with the commodity macro - sentiment last week, but the spot price only slightly declined, and the basis strengthened significantly. There is still an upward driving force after the second round of foreign market quote increase [7] - **Spot**: The price of broad - leaf pulp is stable, while the price of softwood pulp decreased. The price of softwood pulp Silver Star is 5700 yuan/ton, a week - on - week decrease of 70 yuan/ton and a month - on - month decrease of 150 yuan/ton; the price of softwood pulp Buzhen is 4980 yuan/ton, a week - on - week decrease of 90 yuan/ton and a month - on - month decrease of 200 yuan/ton; the price of broad - leaf pulp Jinyu is 4150 yuan/ton, unchanged week - on - week and a month - on - month increase of 60 yuan/ton [16] - **Foreign Market Quotes**: In August, Arauco's quote for softwood pulp Silver Star was $720/ton, and the supply of broad - leaf pulp Star decreased by 50% with a price of $520/ton. Suzano announced price increases in September 2025 [21] - **Total Holdings**: As of August 29, 2025, the total holdings of pulp futures contracts were 360,884 lots, an 18.35% increase from the previous week; the holdings of the main pulp futures contract were 210,805 lots, a 13.86% increase from the previous week [22] 3.3 PART THREE: Pulp Supply and Demand Fundamental Data - **Import Volume**: In July, the import volume of pulp decreased. The total pulp import volume was 2.877 million tons, a 5.08% decrease; the softwood pulp import volume was 646,000 tons, a 4.72% decrease; the broad - leaf pulp import volume was 1.351 million tons, a 5.85% decrease; the broad - leaf wood chip import volume was 1.341 million tons, a 3.79% increase [5] - **Domestic Inventory**: The pulp port and warehouse receipt quantities decreased. As of August 28, 2025, the port inventory was 2.084 million tons, a 2.25% decrease; the delivery warehouse inventory was 247,500 tons, a 1.66% decrease [5] - **Overseas Inventory**: Pulp mill inventories increased, and European port inventories decreased. In July 2025, the European port pulp inventory was 1.5275 million tons, a 1.9% month - on - month decrease [46] - **Downstream Demand**: - **Prices**: The prices of four major wood - pulp papers decreased. As of August 29, 2025, the price of offset paper was 4825 yuan/ton, a 3.4% month - on - month decrease; the price of coated paper was 5000 yuan/ton, a 6% month - on - month decrease; the price of tissue paper was 5583 yuan/ton, unchanged month - on - month; the price of white cardboard was 3930 yuan/ton, a 1.6% month - on - month decrease [51] - **Output**: In July 2025, the output of paper products increased month - on - month. The output of offset paper was 737,000 tons, a 7% month - on - month increase; the output of coated paper was 381,000 tons, a 4% month - on - month increase; the output of tissue paper was 786,000 tons, a 1% month - on - month increase; the output of white cardboard was 1.003 million tons, a 3.5% month - on - month increase [56] - **Inventory**: The inventories of cultural and living papers decreased, while the inventory of white cardboard increased. As of July 2025, the inventory of offset paper was 1.73 million tons, a 5.8% month - on - month decrease; the inventory of coated paper was 1.178 million tons, a 4.2% month - on - month decrease; the inventory of tissue paper was 390,000 tons, a 2.5% month - on - month decrease; the inventory of white cardboard was 2.2781 million tons, a 4% month - on - month increase [61] - **Offset Paper**: As of August 29, 2025, the total offset paper inventory was 1.728 million tons, a 0.7% week - on - week increase; the output was 204,700 tons, a 3000 - ton week - on - week decrease; the capacity utilization rate was 55.6%, a 0.83% week - on - week decrease; the production cost was 4885 yuan/ton, a 0.05% week - on - week decrease; the gross profit was - 42.74 yuan/ton, a 26.4 - yuan week - on - week increase [67][72][75] - **International Demand**: European pulp demand is recovering, while US demand is weakening. In July 2025, the available days of European softwood pulp inventory were 27.2, a 1.3 decrease month - on - month; the available days of broad - leaf pulp inventory were 24.1, a 2.5 decrease month - on - month. As of July 2025, the capacity utilization rate of US paper products was 82.92%, a 0.30% month - on - month decrease; the inventory - to - sales ratio in June 2025 was 1.06, a 0.01 increase month - on - month [78] 3.4 PART FOUR: Pulp Futures Valuation - **Basis and Spread**: As of August 29, 2025, the basis of Shandong Russian softwood pulp was - 38 yuan/ton, an 84 - yuan increase from the previous week; the basis of Shandong Silver Star was 682 yuan/ton, a 104 - yuan increase from the previous week; the 9 - 1 month spread was - 378 yuan/ton, a 72 - yuan decrease from the previous week [88] - **Import Profit**: As of August 29, 2025, the import profit of softwood pulp was - 129 yuan/ton, a 76 - yuan decrease from the previous week; the import profit of broad - leaf pulp was - 43 yuan/ton, a 47 - yuan increase from the previous week [92] - **Needle - Broad Spread**: As of August 29, 2025, the needle - broad spread in Shandong, China, was 1562 yuan/ton, a 100 - yuan increase from the previous week; in July 2024, the needle - broad import ratio in China was 0.48, a 0.01 increase from the previous month [94]

Group 1: Suzano S.A. (SUZ) - Suzano S.A. is a eucalyptus pulp and paper products company with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings has increased by 1.5% over the last 60 days [1] - The company has a PEG ratio of 0.10, significantly lower than the industry average of 0.50, and possesses a Growth Score of B [1] Group 2: LATAM Airlines Group S.A. (LTM) - LATAM Airlines Group S.A. is a passenger and cargo air transportation services company with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 13.6% over the last 60 days [2] - The company has a PEG ratio of 0.47, slightly lower than the industry average of 0.49, and possesses a Growth Score of A [2] Group 3: Montrose Environmental Group, Inc. (MEG) - Montrose Environmental Group, Inc. is an environmental services company with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings has increased by 123.8% over the last 60 days [3] - The company has a PEG ratio of 1.17, significantly lower than the industry average of 5.07, and possesses a Growth Score of A [3]