Brazilian timber companies expecting tough trading conditions in 2018

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ITTO/Fordaq
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Despite the growth in export volumes in 2017 revenue continues to be below expectations, prompting the timber industry not to be too optimistic for the coming year, at time when there are likely to be political and economic changes in the country.

According to the Brazilian Association of MechanicallyProcessed Timber Industry (ABIMCI) many companies are expecting tough trading conditions in 2018 because of the strengthening currency and because of the risk of turmoil as a result of the presidential election dispute.

Several wood product sectors did well in 2017 but export volumes were modest and profit margins were low, mainly because of increased production costs and weakening prices because production had got ahead of demand.

Brazil’s export of pine plywood in 2017 increased 19% year on year and the monthly average shipment was 172,000 cubic metres, an expansion of around 27,000 cubic metres from a year earlier. Among the main markets for pine plywood in 2017 were the United States (30%), the United Kingdom (13%) and Germany (8%).

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