(Updates with closing share prices in second paragraph.)
Oct. 21 (Bloomberg) -- Fibria Celulose SA, the world’s largest pulp producer, advanced in Sao Paulo as global pulp inventories dropped in September, signaling robust demand for the commodity.
Fibria jumped 4.1 percent to 15.07 reais at the close of trading and gained 2.4 percent since Oct. 14. The benchmark Bovespa index rose 2.3 percent and had a weekly advance of 0.4 percent.
“World pulp inventories fell in September by three days of supply to 38 days, which indicates demand is heated,” Luiz Otavio Broad, an analyst at Agora CTVM SA brokerage, said in a telephone interview from Rio de Janeiro. “That’s positive for Fibria as pulp is its main product.”
The BHKP global pulp price index fell to the lowest since February 2009 this month.
The drop in inventories “could be an indication that current pulp prices are close to a bottom,” analysts from Itau BBA including Marcos Assumpcao wrote in a note to investors today.
Klabin SA, Latin America’s biggest paper maker, gained 5.7 percent to 6.15 reais today, while Suzano Papel & Celulose SA rose 2.8 percent to 8.15 reais.
--With assistance from Ney Hayashi in Sao Paulo. Editors: Brendan Walsh, Richard Richtmyer
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