Brazil: ‘Ghost’ timber companies in Pará

  • March 21, 2010
  • • Source: ITTO's Tropical Timber Market Report
  • • Views: 4154
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The regional office of the Brazilian Institute of Environment and Natural Resources (IBAMA) in Pará has identified over 150 ‘ghost’ companies trading timber and other forest products. This number is quoted in the interim report of the so-called “ghostbusters” operation, which tracks the forest product flow in the state.
The ‘ghost’ companies identified by IBAMA are reported to have provided false management plans and forest control documents to support the purchase of and trade in illegal timber. The receipts presented to inspectors were from non-existent companies. In some cases, the plate numbers of vehicles reportedly used for the transport of forest products were those of regular passenger cars and motorcycles, not timber trucks.

Through the ‘ghost’ companies, illegal timber could be disguised as that coming from approved logging areas with approved management plans. IBAMA is prosecuting the offenders.

The Promadeira Fair
The seventh Promadeira Fair will take place in August this year in Sinop, 500 km from Cuiaba. The region is considered the largest timber manufacturing cluster in the State.
This cluster of wood product industries apparently provides some 40.000 direct and 120,000 indirect jobs. The raw materials for the various industries come from around 2.6 million hectares of sustainably managed forest. There are plans to increase this to 6 million hectares. In addition to the traditional international business promotion activities of technical visits and product exhibition, the up coming Fair will feature innovations such as a display of a mini-forest with a demonstration of sustainable forest management techniques.

Native tree seedlings will be distributed and there will be a video presentation on "Standing Forest: the management is possible," produced by the Timber Industry Association of Northern Mato Grosso (Sindusmad) in partnership with the Center for Wood Producers and Exporters of Mato Grosso (CIPEM). This focuses on sustainable forest management practices.

Falling exports from Northern Mato Grosso
Exports from the Alta Floresta tropical timber cluster fell 39% in January 2010 compared with the same period last year according to the Ministry of Development, Industry and Foreign Trade (MIDIC). Exports fell from US$ 645,000 in January 2009 to US$595,700 in January this year.
The major product traded was tropical timber (US$568,400) but sales were down 38% compared to January 2009.
The main importers were Spain, (accounting for US$ 223,700, or 37.5% of the total export), followed by Canada (US$155,100), the United States (US$ 142,200), Belgium (US$ 47,300) and India which imported just US$27,300 worth of wood products from the region.

Pará’s exports recover
The economy of Pará started to recover in January this year after eleven months. Now the economy of Pará is ranked second amongst the Brazilian States generating a trade surplus of US$ 550 million.
Exports from Pará’s increased 13% in January 2010 compared to January 2009 from US$578 million to US$657 million. In contrast to the situation in 2009 when export declined sharply, there was a turnaround earlier this year.

Wood product exports increased 19%, which analysts say is significant given the deep recession in the sector last year.
While wood product exports from Pará were just US$ 24 million in January 2009, in January this year they were almost US$ 29 million.

brazil Brazil Log Prices (domestic)
Brazilian logs, mill yard, domestic US$ per m3
Ipê 145
Jatoba 104
Guariuba 68
Mescla (white virola) 75

Brazil Sawnwood Prices
Sawnwood, Belem/Paranagua Ports, FOB US$ per m3
Jatoba Green (dressed) 827
Cambara KD 477
Asian Market (green)        Guariuba 266
Angelim pedra
619
Mandioqueira
231
Pine (AD) 192
Brazil sawnwood, domestic (Green)
US$ per m3
Northern Mills (ex-mill)     Ipe
694
Jatoba
532
Southern Mills (ex-mill)     Eucalyptus (AD)
186
Pine (KD) 1st grade
238

Brazil Veneer Prices
Veneer, FOB (Belem/Paranagua Ports) US$ per m3
White  Virola  Face  2.5  mm 293
Pine Veneer (C/D)
206
Rotary cut Veneer, domestic
US$ per m3
(ex-mill Northern Mill)
     Face    Core
White Virola
     255       212

Brazil Plywood Prices
Plywood, FOB
US$ per m3
White  Virola  (US Market)
5.2 mm OV2 (MR)
475
15 mm BB/CC (MR)
410
White Virola (Caribbean Market)
 
4mm BB/CC (MR)
 519
12mm BB/CC
416
Pine Plywood EU market, FOB
US$ per m3
9mm C/CC (WBP)
276
15mm C/CC (WBP)
252
18mm C/CC (WBP)
247
Plywood, domestic (ex-mill Southern mill)
US$ per m3
Grade MR (B/BB)  White Virola 4mm
870
 White Virola 15mm
636
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) 311
Domestic Prices, Ex-mill, Southern Region

Blackboard White Virola faced 15mm
554
Particleboard 15mm
352

Brazil Added Value Products
FOB Belem/Paranagua Ports US$ per m3
Edge Glued  Pine Panel
Korean market (1st grade)
634
US Market
486
Decking Boards     Cambara
603
Ipê
1,583