Exports of tropical timber products continue to decline
In January 2011, exports of timber products (excluding pulp and paper) jumped 13.7% to US$170 million compared to US$149 million in January 2010.
However, exports of tropical sawnwood declined in terms of both volume and value, from 39,000 cu.m worth US$20 million in January 2010 to 36,100 cu.m valued at US$17.8 million in January 2011, representing 7.4% decline in volume and 11% in value.
Exports of tropical plywood also dipped, plummeting 19% from 6,300 cu.m in January 2010 to 5,100 cu.m in January 2011. In value terms, the drop was 17%, from US$3.5 million to US$2.9 million.
For wooden furniture too, the value of exports declined 10% compared to the level in January 2010 to US$30.8 million in January 2011.
In contrast, pine sawnwood exports jumped 38% in January 2011 compared to January 2010, from US$8.1 million to US$11.3 million. In terms of volume, exports rose 27% from 39,100 cu.m to 49,600 cu.m over the period.
The value of pine plywood exports also surged 26% in January 2011 compared to the level in January 2010, from US$21.6 million to US$27.3 million. In terms of volume, exports rose 15% from 66,200 cu.m to 76,100 cu.m over the period.
First hike in prime interest rate since July 2010
According to the Brazilian Institute of Geography and Statistics (IBGE), the Consumer Price Index (IPCA) in January 2011 increased 0.83% over the level recorded in January last year, up 0.20 percentage points compared to December 2010.
In January 2011, the average exchange rate to the US dollar was BRL1.67/US$ compared to BRL 1.78/US$ during the same month of 2010, showing further strengthening of the Brazilian Real against the US dollar over the period.
For the first time since July 2010, the Copom (Economic Policy Committee) raised the prime interest rate (Selic) by 0.5 percentage points to 11.25% per year in January 2011.
Economic assessment of forest concessions in Pará
The Brazilian Forest Service (SFB) and the Timber Exporters Association of the State of Pará (AIMEX) will organise a meeting on economic aspects of forest concessions. The meeting is to assess prospects and opportunities for trade and financing of forestry activities in Pará. The strategy for the forestry sector in Pará is to increase its share in the domestic and foreign markets by expanding forest concession areas under sustainable management and attracting more financing.
SFB opened a bidding process for forest concessions of 210,000 hectares in the Amaná National Forest. SFB plans to launch three other bidding processes for forest concessions covering 700,000 hectares in the context of the management of national forests in the state of Pará. In addition, a forest concession of 48,800 hectares in the Saracá-Taquera National Forest is expected to become operational this year.
The national forests of Altamira, Amaná and Crepori in the regions of Itaituba and Jacareacanga of the state of Pará cover altogether an area of over two million hectares. It is estimated that 300,000 hectares of forests are required under concession management per year in order to meet the current demand for tropical timber in the state of Pará. Concessions are usually granted for period of 40 years to facilitate effective combating of illegal forest activities and promoting legal timber operations, commercialisation and processing.
The volume of timber production in Pará was 6.6 million cu.m in 2009, accounting for 47% of the total domestic timber production. Pará was also the largest producer of processed timber in Brazil at 2.5 million cu.m and generated the highest gross revenue from logging with BRL 2.17 billion in 2009, according to SFB.
Pará timber product exports on the mend
The value of manufactured and industrial timber product exports from Pará in 2010 rose 11.7% to US$387 million compared to 2009. In terms of volume, exports rose only 0.33% to 360,952 tonnes, still far below the record level of exports of 1,016,678 tonnes worth US$793 million in 2007.
The total exports of Pará in 2010 were valued at US$ 12.8 billion, up sharply by 54% over 2009. The timber sector was the third largest exporter in the state. The US continues to be the main export destination for timber products from Pará accounting for US$120 million of the value of exports in 2010, up 9.7% compared to 2009.
In Brazil, the state of Parana is the largest wood and timber product exporter with a value of exports of US$647 million in 2010, followed by Santa Catarina (US$410 million) and Pará.
Timber industry calls for cost sharing
The timber industry has called for sharing of maintenance and infrastructure costs of public forests by the public and private sectors.
According to the Timber Exporters Association of the State of Pará (AIMEX), forest concessions generate social and environmental benefits for the states in the Amazon and, as such the cost of a Forest Management Unit (FMU) should be lower. Currently, the minimum price of a FMU may be as high as BRL 2 million.
Restricting logging during the rainy season
The federal rule restricting logging, skidding and transportation of timber in Mato Grosso was implemented for the first time in 2010. For this year, the federal rule is effective during the rainy season from 1 February to 1 April. However, forest engineers responsible for forest management areas can extend the period in accordance with the prevailing conditions in each area. Log trade and transportation is only allowed from timber yards with forest roads built according to forest management plans.
The aim of the rule is to address the problems of soil degradation and damage caused by logging undertaken during the rainy season.
|Brazilian logs, mill yard, domestic||US$ per m3|
|Mescla (white virola)||83 ⇑|
Brazil Sawnwood Prices
|Sawnwood, Belem/Paranagua Ports, FOB||US$ per m3|
|Jatoba Green (dressed)||883 ⇑|
|Cambara KD||513 ⇑|
|Asian Market (green) Guariuba||277 ⇑|
|Pine (AD)||200 ⇓|
|Brazil sawnwood, domestic (Green)||
US$ per m3
(ex-mill) Eucalyptus (AD)
Pine (KD) 1st grade
Brazil Veneer Prices
|Veneer, FOB (Belem/Paranagua Ports)||US$ per m3|
|White Virola Face 2.5 mm||298|
|Pine Veneer (C/D)
||US$ per m3|
| (ex-mill Northern Mill)
| White Virola
Brazil Plywood Prices
||US$ per m3|
|White Virola (US Market)|
5.2 mm OV2 (MR)
15 mm BB/CC (MR)
|White Virola (Caribbean Market)
4mm BB/CC (MR)
Plywood EU market, FOB
||US$ per m3|
|9mm C/CC (WBP)
|15mm C/CC (WBP)
|18mm C/CC (WBP)
||US$ per m3|
|Grade MR (B/BB) White
White Virola 15mm
|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)||314 ⇑|
Prices, Ex-mill, Southern Region
|Blackboard White Virola faced 15mm
Brazil Added Value Products
|FOB Belem/Paranagua Ports||US$ per m3|
|Edge Glued Pine Panel|
Korean market (1st grade)
|Decking Boards Cambara