Exports of tropical sawnwood fell both in volume and in value, from 42,300 cu.m in August 2010 to 35,600 cu.m in August 2011 and from US$19.9 million to US$18.7 million, respectively, over the same period. This performance represents an overall 6.0% decline in value and 16% decline in export volumes.
Pine plywood exports dropped 23% in value in August 2011 compared to levels in August 2010, from US$32.2 million to US$24.7 million. The decline in volume amounted to 29% over the same period, from 87,800 cu.m to 62,600 cu.m. Exports of tropical plywood also dropped going from 9,800 cu.m in August 2010 to 7,300 cu.m in August 2011, representing a 25.5% decline. In terms of value, a 17% fall was recorded, from US$5.4 million to US$4.5 million. Exports of wooden furniture also suffered as the value of exports fell from US$48.1 million in August 2010 to US$45 million in August 2011, a 6.4% decrease.
Hardwood product exports boosted by strong performance of mills in northern Mato Grosso
Exports of wood products from mills in Alta Floresta earned some US$22.4 million between January and August this year according to the Ministry of Development, Industry and Foreign Trade (MDIC). This represents a staggering doubling of trade over the same period last year, when exports totaled US$11.3 million. Exports of non-coniferous wood products lead the way at US$11.2 million (50.3%). The United States was the main importers of wood products from Alta Floresta, accounting for around 37% of the year’s total exports. Hong Kong followed with 21% of the total exports. Other export destinations included Egypt (12%), Iraq (6%) and Spain (4%) as well as about 19 other destinations.
Plans to raise competitiveness of furniture manufacturers in Santa Catarina
In September this year an agreement to improve the manufacturing and trade in wooden furniture was signed by the Wood and Furniture Producers Association of Western Santa Catarina (Amoesc) and the Furniture and Woodworking Industry Union of Uruguay Valley (Simovale), and the Industry Federation of State of Santa Catarina (Fiesc).
The purpose of this agreement is to raise the competitiveness of participating companies, provide support and encouragement to furniture exporters in Western Santa Catarina and expand international marketing activities.
A preliminary assessment made of the furniture companies in the Western Wood Products cluster reveals that most are not oriented towards export markets and have little experience in managing export marketing. The agreement is part of an ‘Exporting Industrial Extension’ (PEIEX) project created by the Ministry of Development, Industry and Foreign Trade and Apex Brazil.
The agreement will expand industry access to support services available from government institutions and the private sector, provide means for technical and management improvements and technological change. Approximately 140 major companies of Western of Santa Catarina are involved.
Timber prices in domestic market continue upward trend
Prices of wood products in the domestic market in BRL increased on average by almost 2% over the past month but when compared in terms of US dollars the increase was much larger being on average 3.5%.
Demand for sustainable timber could outstrip supply in Para says IMAZON
In a study prepared by IMAZON, (Amazon Institute of People and the Environment), a non-profit research institution, an assessment of the availability of forest areas for forest management was made considering current and future demand for timber by the wood processing industry in Para State. Production and consumption of wood products in Para State is the highest in Brazil and the state currently produces around 6.5 mil. cu.m of wood products from the natural forest.
To ensure sustainable production it has been estimated that, at the current rate of harvesting, the timber sector in Para needs approximately 100 square km of forests assuming a cutting cycle of 30 years.
The IMAZON study suggests that the forest area available is insufficient to support sustainable harvesting to meet projected increase in demand for raw material and that some 210,000 sq. km will be required.
The report recommends policies for more effective and transparent preparation, approval and implementation of forest management plans in the State with emphasis on sustainable forest concession management planning.
Amazonas considers law on payments for environmental services
The Northern Amazonian state of Amazonas could be the third state in Brazil to enact laws defining payments for environmental services aimed at encouraging the protection of natural resources. Currently, only Acre and Espírito Santo have approved state laws and have actually implemented payments for environmental services.
A commission formed by representatives from the Forum on Climate Change and other institutions have prepared a draft law which is currently under discussion in Amazonas. This is a significant issue in the State and the broad based discussions planned will involve civil society and the mainly forest and rural communities across the state.
Despite ‘hot’ economy interest rates cut by half a percent
The National Consumer Price Index (IPCA) was 0.37% in August, after rising by 0.16% in July, according to the Brazilian Institute of Geography and Statistics (IBGE). The cumulative rate over the last 12 months up to August 2011 is 7.23%, the highest since June 2005 and well above the 6.5% target set by the government.
The average exchange rate in August was BRL 1.60/US$ compared to BRL 1.76 in the same month of last year. The appreciation of the Brazilian currency against the US dollar continues to be of concern to exporters.
The Monetary Policy Committee (Copom) reduced the prime interest rate (Selic) from 12.50% to 12.00% at its meeting in the end of August. The next Copom meeting is scheduled for mid-October.
| Brazilian logs, mill yard, domestic | US$ per m3 | ||
| Ipê | 178 ⇑ | ||
| Jatoba | 131 ⇑ | ||
| Guariuba | 87 ⇑ | ||
| Mescla (white virola) | 95 ⇑ | ||
Brazil Sawnwood Prices
| Sawnwood, Belem/Paranagua Ports, FOB | US$ per m3 | ||
| Jatoba Green (dressed) | 945 ⇑ | ||
| Cambara KD | 554 ⇑ | ||
| Asian Market (green) Guariuba | 298 ⇑ | ||
|
Angelim pedra
|
692 ⇑ | ||
|
Mandioqueira
|
260 ⇑ | ||
| Pine (AD) | 216 ⇑ | ||
| Brazil sawnwood, domestic (Green) |
US$
per m3
|
||
| Northern Mills
(ex-mill) Ipe |
903 ⇑ | ||
|
Jatoba
|
682 ⇑ | ||
| Southern Mills
(ex-mill) Eucalyptus (AD) |
230 ⇑ | ||
|
Pine (KD) 1st grade
|
276 ⇑ | ||
Brazil Veneer Prices
| Veneer, FOB (Belem/Paranagua Ports) | US$ per m3 | ||
| White Virola Face 2.5 mm | 305 ⇑ | ||
| Pine Veneer (C/D) |
216 ⇑ | ||
| Rotary cut
Veneer, domestic |
US$ per m3 | ||
| (ex-mill Northern Mill) |
Face
Core |
||
| White Virola |
305 ⇑ 252 ⇑ | ||
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
|
426 ⇑ | ||
| Pine
Plywood EU market, FOB |
US$ per m3 | ||
| 9mm C/CC (WBP) |
307 ⇑ | ||
| 15mm C/CC (WBP) |
288 ⇑ | ||
| 18mm C/CC (WBP) |
323 ⇑ | ||
| Plywood,
domestic (ex-mill
Southern mill) |
US$ per m3 | ||
| Grade MR
(B/BB) White
Virola 4mm |
1052 ⇑ | ||
|
White
Virola 15mm
|
767 ⇑ | ||
| 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) | 316 | ||
| Domestic
Prices, Ex-mill, Southern Region |
|||
| Blackboard White Virola faced 15mm |
659 ⇑ | ||
| Particleboard 15mm |
442 ⇑ | ||
Brazil Added Value Products
| FOB Belem/Paranagua Ports | US$ per m3 | ||
| Edge Glued Pine Panel | |||
|
Korean
market
(1st
grade)
|
674 ⇑ | ||
|
US Market
|
522 ⇑ | ||
| Decking
Boards Cambara |
675 ⇑ | ||
|
Ipê
|
1,822 ⇑ | ||