Brazil: Furniture hub in Cruzeiro do Sul attracts investors

Source:
ITTO's Tropical Timber Market Report
Views:
5469
  • text size

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
Post comment