The establishment of an industrial hub in Cruzeiro do Sul in the Amazon State of Acre is almost complete. The Acre State government has invested about R$3 million in the development of this industrial centre. This investment, specifically for the wood processing sector, has attracted the attention of entrepreneurs from other States.
Many industrialists are keen on this initiative in Acre as the state has two strategic road connections, one is highway BR-364, which helped inter-state integration and another is the convenient connection to ports on the Pacific coast via the Trans-oceanic highway. This new development makes Acre an attractive location for industrial development and new wood processing operations are expected to open at the industrial hub.
The timber industry in Acre benefits from support for its operations, with its raw material supply is guaranteed legal since it comes from community and publicly managed forests or from private land covered by management plans. Representatives of manufacturers in the hub are appreciative of the investment by the state government and the efforts of the government to invest in an industrial sector.
Bright long term prospects for wood product manufacturers
Despite the current global economic downturn, countries with primary raw material production capability have a secured future. This has prompted the Brazilian Senate to review the country’s long term export strategy. Analysts suggest that, taking account of global trends, the forestry and timber industries will have a bright future in the coming years.
In September, Brazilian exports of wood products were valued at US$155 million, representing a 6.7% decline on the previous month. Imports of wood products were US$17 million, a sharp drop of 14.4% from the previous month. In order to be well prepared for the eventual improvement in global demand parliamentary initiatives, aimed at creating the conditions for investment in added value production, are said to offer prospects for a sound future for the sector in the medium to long-term.
There is a proposal being considered by the Brazilian senate for a ban on the export of unprocessed wood. This measure, if adopted, should encourage greater investment in wood processing which, in turn would create more jobs and increase export earnings.
Furniture output grows despite uncertainties in global economy
The Brazilian furniture industries are worried that the uncertainties in the global economy, mainly caused by the crisis in the euro-zone countries, will continue to depress demand. In addition exchange rate fluctuations have resulted in Brazilian wood products loosing international competitiveness. Despite the international crisis, the furniture sector achieved positive growth in August mirroring trends in the overall Brazilian processing industries. Furniture output in August increased 12% compared to levels in August 2010. However, furniture exports have been falling. For the year to-date Brazil’s furniture exports were around US$337 mil., 12% lower than in the same period in 2010.
In contrast furniture imports have been growing due mainly to the strength of the real. From January to August 2011, imports climbed 97% higher than in the same period in 2010. However, in September there was a significant drop in the level of imports reflecting the sharp depreciation of the Brazilian real against the US dollar. Measures by the federal government to assist the furniture sector such as investment in promotion, lowering interest rates, and other measures to boost domestic demand helped the furniture sector.
Wood Identification System could raise tax revenues to state
The Mato Grosso Institute of Agricultural Protection (Indea) participated in the First Wood Anatomy and Identification Seminar in the Amazon, in Belém, Pará. The main objective was to exchange experiences on the establishment of wood anatomy and identification systems and log scaling in the Amazon region.
In 2009, when the latest survey was conducted, there were 71 wood processing centres in the Amazon region. These centres were logging approximately 14.2 million cubic metres annually. The states of Pará, Mato Grosso and Rondônia were the largest producers. Estimates of the gross revenue generated by the Amazon timber industry in that year were around R$4.9 billion.
Cost effective systems for anatomical identification of species is considered the most reliable means to ensure that consumers receive the species they require. Correct specie identification is also a tool to value products an element in the process to secure certification from state agencies.
If an easy to use wood identification system can be developed it could, say analysts, result in higher state timber tax revenues and help in protecting controlled species as well as improving consumer protection.
brazilBrazil Log Prices (domestic)
Brazilian logs, mill yard, domestic | US$ per m3 | ||
Ipê | 167 | ||
Jatoba | 122 | ||
Guariuba | 82 | ||
Mescla (white virola) | 87 |
Brazil Sawnwood Prices
Sawnwood, Belem/Paranagua Ports, FOB | US$ per m3 | ||
Jatoba Green (dressed) | 1,002 | ||
Cambara KD | 592 | ||
Asian Market (green) Guariuba | 314 | ||
Angelim pedra
|
722 | ||
Mandioqueira
|
270 | ||
Pine (AD) | 223 | ||
Brazil sawnwood, domestic (Green) |
US$ per m3
|
||
Northern Mills (ex-mill) Ipe | 856 | ||
Jatoba
|
643 | ||
Southern Mills (ex-mill) Eucalyptus (AD) | 219 | ||
Pine (KD) 1st grade
|
252 |
Brazil Veneer Prices
Veneer, FOB (Belem/Paranagua Ports) | US$ per m3 | ||
White Virola Face 2.5 mm | 314 | ||
Pine Veneer (C/D) | 229 | ||
Rotary cut Veneer, domestic | US$ per m3 | ||
(ex-mill Northern Mill) | Face Core | ||
White Virola | 287 235 |
Brazil Plywood Prices
Plywood, FOB | US$ per m3 | ||
White Virola (US Market) | |||
5.2 mm OV2 (MR)
|
455 | ||
15 mm BB/CC (MR)
|
401 | ||
White Virola (Caribbean Market) | |||
4mm BB/CC (MR)
|
554 | ||
12mm BB/CC
|
427 | ||
Pine Plywood EU market, FOB | US$ per m3 | ||
9mm C/CC (WBP) | 326 | ||
15mm C/CC (WBP) | 305 | ||
18mm C/CC (WBP) | 315 | ||
Plywood, domestic (ex-mill Southern mill) | US$ per m3 | ||
Grade MR (B/BB) White Virola 4mm | 930 | ||
White Virola 15mm
|
693 | ||
Domestic prices include taxes and may be sbject to discounts. |
Other Brazil Panel Prices
Belem/Paranagua Ports, FOB | US$ per m3 | ||
Blackboard Pine 18mm 5 ply (B/C) | 313 | ||
Domestic Prices, Ex-mill, Southern Region | |||
Blackboard White Virola faced 15mm | 609 | ||
Particleboard 15mm | 409 |
Brazil Added Value Products
FOB Belem/Paranagua Ports | US$ per m3 | ||
Edge Glued Pine Panel | |||
Korean market (1st grade)
|
704 | ||
US Market
|
543 | ||
Decking Boards Cambara | 713 | ||
Ipê
|
1,879 |