Brazil Trade Balance for Forest Sector Has 4.9% Surplus

The trade balance for the Brazilian planted tree industry reached $2.9 billion from January to May 2017, a growth of 4.9% compared with the same period last year. During the year, the sector accumulated total exports of $3.3 billion, 3.2% higher than the same period in 2016. Pulp sales abroad reached $2.4 billion (+4.1%), while foreign sales of paper were $767 million (-2.0%) and sales of wood panels were $113 million (+25.6%). 

The following summarizes performance of the Brazilian planted tree industry as tracked by the Brazilian Tree Industry (Ibá). 

Production – Brazilian pulp production reached 8 million metric tons (+5.3%) between January and May 2017, and paper registered 4.3 million metric tons (-0.6%). 

Exports – demand for Brazilian pulp remains high in the international market. During the first five months of the year, 5.5 million metric tons of pulp were exported, an expansion of 4.7% during the same five months of 2016. The paper sector recorded exports of 892,000 metric tons (+1.8%), and wood panels reached 490,000 cubic meters (+36.5%).

Destination of Exports – China has maintained its position as the main destination for Brazilian pulp, representing more than 43% of the total exported by Brazil and generating income of approximately $1 billion for the year, an increase of 27.7% compared with the first five months of 2016. Meanwhile, Latin America remains the main market for the paper and wood panel sectors, generating revenues of $492 million (+10.3%) and $62 million (+26.5%), respectively.

 

 Domestic Sales – Sales of paper and wood panels on the domestic market remained stable at 2.1 million metric tons and 2.6 million cubic meters, respectively. 

The Brazilian Tree Industry (Ibá) is the association responsible for institutionally representing the planted tree production chain, from the fields to the factory, with its main stakeholders. Launched in April 2014, it represents 60 companies and nine state entities for products originating from planted trees (wood panels, laminate floors, pulp, paper, energy forests, and biomass) in addition to independent producers of planted trees and institutional investors. More information about the Brazilian tree industry is available online.