Market leadership is an ambition for many companies, particularly those in commodity businesses.
Benefits include economies of scale, pricing influence, better access to capital, and a superior client portfolio, among others.
However, leadership comes with a tangible cost—not just theoretical, but a measurable financial impact. Market leaders must carefully manage sales volumes to avoid destabilizing prices while supporting the viability of higher-cost producers, who often set the market’s price floor.
Suzano, the global leader in market pulp, exemplifies this dynamic. With a production capacity more than double that of its closest competitor, Suzano has had its sales volume reduced by 19% (633,000 metric tons) from 4Q 2024 to 1Q 2025. In contrast, other major producers saw declines of only 1% to 7%.
Some of this reduction in sales volume reflects the “cost” of maintaining its leadership position.
