Higher prices for solidwood products in international markets and new investments in civil construction have helped compensate the loss suffered by the Brazilian solidwood industry in recent years. According to the
Brazilian Association of Mechanically Processed Wood (ABIMCI), the total value of wood sector sales amounted to USD5 billion in 2006, of which USD2.5 billion was from the international trade. A 15% hike in this trade value is likely to be reflected in 2007 data. Despite this positive
scenario, ABIMCI forecasts overall lower investments than previously expected. For the 2005-2014 period, investments in the wood industry are now forecast at USD5 billion.
Price increases for solidwood products in international
markets have reached up to 30% in some segments, due to
higher demand for wood products in the European civil
construction market and rising production costs in some
competing countries such as China and Finland. Pine
plywood, the main export product of the Brazilian
solidwood sector, has been sold at prices higher than the
historic average (USD240/ m³). Prices for pine plywood
rose from USD210/ m³ in the first half of 2006 to USD270
m³ in the same period of 2007.
Exports of solidwood, which includes mostly plywood, sawnwood, veneer, doors, floors and woodcrafts, reached a total of USD2.6 billion last year, a 3.9% increase over 2005. The main destination markets were Europe and the
US, with the Middle East becoming an increasingly significant export destination. Europe generated more demand than the US, as exports to the US have been drastically reduced as a result of falling housing
construction and the hike from 0 to 8% in US import tax
on Brazilian plywood. ABIMCI expects growth in
domestic consumption of solidwood products in the range
of 25% to 30%, due to an anticipated rise in the civil
construction market associated with the federal government’s "Development Acceleration Programme".
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