Arab markets support increase in Brazilian timber aprilie 10, 2009
Brazil’s current trade with Arab countries was presented to
timber companies of Northern Mato Grosso in the first
week of March 2009 at the Union of Timber Industries
(SINDUSMAD). The Arab-Brazilian Chamber of
Commerce discussed possible ways for entrepreneurs to
negotiate with the Arab countries to maximize access to
their markets. Exports of Brazilian companies to Arab
countries totaled USD83.5 million in 2008.
The idea is to show the opportunities to local business and
companies all over Brazil. The Sinop furniture cluster in
particular has the potential to gain a significant share of
the import market for timber products. The Arab-Brazilian
Chamber of Commerce said the participation in
international exhibitions and trade fairs would help
promote the quality of the Brazilian timber and act as a
first step to strengthening trade relationship between the
Arab countries and timber producers from Sinop.
The timber product imports are still a small share of the
total imports in Arab markets. Morocco, Saudi Arabia, the
United Arab Emirates and Egypt are major timber product
buyers. The timber producing companies of Northern
Mato Grosso have already sent a large portion of their
exports to Belgium, England, Spain, Canada and the US.
Plywood and sawnwood are the main traded products. In
2008, sawnwood exports dropped 20.7%, or USD81
million; export of low quality sawnwood increased 43%,
totaling USD5.2 million.
Furniture manufacturers hopeful for growth in sector
during 2009
Furniture manufacturers of several states will have a rough
indication of 2009 production from a local furniture fair in
Arapongas, a furniture cluster located in the Northern part
of the state of Paraná, the second largest furniture
producing area in Brazil. Large retailers of the country and
23 importers will attend the Movelpar furniture fair in
Arapongas, where 190 exhibitors are expected to
participate. The target is to reach BRL 400 million in trade
deals, 30% more than the 2007 Movelpar fair.
According to the Brazilian Association of Furniture
Companies (ABIMOVEL), the revenue of the furniture
sector increased from BRL 22 billion in 2007 to BRL 27
billion in 2008 due to an increase in domestic market
demand, which showed positive trend in the first nine
months; although this trend reversed after September
2008. Production decreased 16.2% in December 2008,
contributing to a 1.3% decrease over the year and a
reduction in the number of employees by 11.9%.
Currently, nearly 10% of domestic production is exported,
with overall exports expected to be lower in 2009.
Nevertheless, there is a strong optimism from producers
that figures for furniture exports will improve in 2009,
with some projecting growth of 3% to 5%. According to
ABIMOVEL, gains for the sector are expected in the
second semester.
brazilBrazil Log Prices
(domestic)
Brazilian logs,
mill yard,
domestic
US$
per m3
Ipê
109
⇓
Jatoba
78
Guariuba
52
Mescla (white virola)
57
Brazil Sawnwood Prices
Sawnwood,
Belem/Paranagua Ports, FOB
US$
per m3
Jatoba Green (dressed)
809
Cambara KD
471
Asian Market
(green) Guariuba
266
Angelim pedra
611
Mandioqueira
235
Pine (AD)
195
Brazil
sawnwood, domestic (Green)
US$ per m3
Northern Mills
(ex-mill) Ipe
518 ⇓
Jatoba
398 ⇓
Southern Mills
(ex-mill) Eucalyptus (AD)
147 ⇓
Pine (KD) 1st grade
192 ⇓
Brazil Veneer Prices
Veneer, FOB
(Belem/Paranagua Ports)
US$
per m3
White Virola Face
2.5 mm
298
Pine Veneer (C/D)
210
Rotary cut
Veneer, domestic
US$
per m3
(ex-mill Northern Mill)
Face Core
White Virola
196 ⇓163 ⇓
Brazil Plywood Prices
Plywood, FOB
US$
per m3
White Virola (US Market)
5.2 mm OV2 (MR)
469
15 mm BB/CC (MR)
405
White Virola (Caribbean Market)
4mm BB/CC (MR)
512
12mm BB/CC
410
Pine
Plywood EU market, FOB
US$
per m3
9mm C/CC (WBP)
275
15mm C/CC (WBP)
252
18mm C/CC (WBP)
250
Plywood,
domestic (ex-mill
Southern mill)
US$
per m3
Grade MR (B/BB) White
Virola 4mm
676 ⇓
White Virola 15mm
494 ⇓
Domestic
prices include taxes and may be sbject to discounts.
