“José Luciano Penido, Votorantim Celulose e Papel (VCP)’s CEO, who was here to receive RISI’s CEO of the Year award for the second consecutive time, emphasized that all pulp and paper producers will have to take mill downtime in an attempt to balance the market by reducing supply. The market is already seeing a rise in global inventories, which has been worrying many players.”

“SÃO PAULO, 8/11/08 - The preferred shares of Brazilian pulp and paper companies Aracruz Celulose and Votorantim Celulose e Papel (VCP) closed sharply downward today at the São Paulo Stock Exchange (Bovespa), falling 8.06% and 6.86% respectively.
According to Jayme Alves, analyst at Spinelli brokerage firm, the trend is due to the fact that the sector’s shares are following the performance of other stocks traded at the Brazilian exchange, due to the fall in commodity prices in the international market.
‘Besides, the sector depends on Asia and Europe. A market consensus is being created on China’s growth, which may not be that huge, rising from the current 10% to approximately 7% in coming years. This outlook ended up putting pressure on commodities,’ said Alves. (Déborah Costa/cferreira - InvestNews)”