Suzano Paper & Pulp Co, the world's largest producer of hardwood pulp, is considering exporting products to China in renminbi, chief executive Walter Schalka said in a recent interview. Mr Schalka says the importance of the renminbi is growing. He stressed that China will undoubtedly become more important in the global market.
Suzano Paper and Pulp is based in Brazil and sells 43 percent of its pulp to China. The global paper towel business is very stable, Mr. Schalka said. "In print and writing paper, the U.S. business is a little bit weaker. China is doing well, Europe is doing badly and market share is falling.""I have no doubt that China will become more important in the global market." he stressed. "My own view is that it would be better for the West and the East to work together for the long term, but what we are seeing now is a growing tension."
China and Brazil signed a memorandum of understanding early this year to establish a renminbi clearing arrangement in Brazil. If Suzano decides to trade with China in Chinese yuan, it will be the latest case of Brazilian companies embracing the RMB, analysts say. In March, the RMB overtook the US dollar for the first time to become the most widely used currency for cross-border transactions in China, according to data from the State Administration of Foreign Exchange.