Brazilian pulp giant Suzano, the world’s largest producer of market pulp, has warned that global prices for toilet paper, tissues, diapers, and other hygiene products are likely to rise if the U.S.–Israeli war on Iran continues to escalate. The company says the conflict has already triggered a surge in oil prices, pushing up transportation and chemical costs across the supply chain. 

 

Paulo Leime, Suzano’s Managing Director for Europe, the Middle East and Africa, told Reuters that the company is facing sharp increases in shipping, trucking, rail logistics, and essential chemical inputs such as caustic soda and sulfuric acid — all critical to pulp production. 

“There is for sure an increase in cost to the whole system, the whole value chain,” he said, adding that these pressures will “put pressure on paper prices” globally. 

 

Suzano supplies pulp used in major global brands including Cottonelle, Kleenex, sanitary pads, diapers, and cardboard packaging. With oil prices spiking since the start of the conflict, the company says the inflationary effect is spreading beyond pulp and paper, raising concerns that households worldwide may face higher prices for basic goods. 

 

Although Suzano has hedged part of its exposure to raw material price swings, Leime noted that indirect costs are rising rapidly, especially for chemicals and energy-intensive processes. 

The pulp sector is among the world’s most energy intensive industries, and soaring energy prices are hitting margins across the board. The company’s shares have fallen more than 15% since the conflict began. 

 

The geopolitical situation has also disrupted Suzano’s operations in the Middle East, where it holds significant market share in Dubai, Abu Dhabi, Bahrain, and Qatar. With traditional shipping routes affected, Suzano is now rerouting pulp shipments through the Mediterranean and the Suez Canal, followed by costly overland trucking through Saudi Arabia and Jordan. 

 

Leime warned that if the crisis persists, inflation could return across multiple consumer categories, not just paper and tissue. “If this crisis continues… inflation should be back across multiple products, not only paper and tissue,” he said.