Brazil's Suzano SA, one of the world's largest pulp exporters, will keep production below full capacity through 2026 as a weakening US dollar hurts revenue, CEO Joao Alberto Abreu said. The decision reflects the company's strategy to manage profitability amid currency headwinds that reduce the value of pulp sales when converted from dollars to reais.

Suzano's pulp business, which accounts for a significant portion of its revenue, is particularly vulnerable to currency fluctuations. A weaker dollar means Brazilian exporters receive fewer reais for each dollar of pulp sales, squeezing margins on international shipments. The company's move to limit output demonstrates how currency volatility can directly impact production decisions in the global commodities sector.

By maintaining production below capacity, Suzano aims to balance supply with market conditions and protect its financial performance. This approach allows the company to avoid flooding the market with excess pulp while currency challenges persist. The strategy highlights the complex interplay between exchange rates and commodity production in emerging markets.