Brazil: Decline in wood products export revenues

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Fordaq/ITTO
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Exports planation wood products increased in the first 10 months of this year. Between January and October 2016, pulp exports increased 11% year on year to 10.7 million tonnes. Paper exports reached 1.7 million tonnes in the same period, a 3.2% growth compared to 2015. In addition there was an over 60% rise in exports volumes of woodbased panels 831,000 cu.m.

In the first 10 months of this year the plantation wood sector recorded export earnings of US$ 6.3 billion (-2.5% year on year), pulp reached 4.6 billion (-1.7% y.o.y ), paper US$ 1.6 billion (-7.3% y.o.y) and woodbased panels US$ 201 million (+ 26.4% y.o.y).

China remains the main destination for Brazilian pulp, with a 38% share followed by Europe (34%). Latin American countries continue to be the main destinations for paper and woodbased panel exports accounting for almost 60% of total plantation wood based panel exports.

According to the IBÁ (Indústria Brasileira de Árvores /Brazilian Tree Industry) 2016 Report, For the year to August 2016, 4.193 million cu.m of woodbased panels were traded against 4.387 million cu.m in the same period in 2015, despite the fall export values increased.

According to IBÁ, domestic demand will remain subdued in early 2017 as GDP forecasts are not encouraging and inflation is likely to remain high. Against this background, the Brazilian woodbased panel industry aims to focus on exports while monitoring domestic construction and furniture production.

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