The scenario for wood exports in October was unfavorable. According to WoodFlow, using data from the Comex Stat portal, the comparison of exported volumes between September and October showed a 26% decrease. When compared to the same period last year, the reduction is even greater, at 29%.
Gustavo Milazzo, CEO of WoodFlow, mentioned that the economic situation also contributed to this decline. “Global inventories are still high compared to product consumption. During our visits to Brazilian factories, many indicate they are reducing their production,” he said.
In October, Brazilian manufacturers also experienced lower compensation. Compared to the previous month, there was a 19% reduction. When compared to the same period last year, the decrease is 39%.
“The global wood market is seeking balance between supply and demand. This is reflected in the comparison of volumes and prices of exported products in 2022 and 2023. Last year, there was an impact on production volumes due to the pandemic. This year, stocks remained high as consumption continued to decline. This scenario concerns Brazilian producers who still don’t see when the balance between supply and demand will be reached to stabilize orders and improve sector numbers,” added Gustavo
Segment-wise Analysis
In the month of October, the percentage distribution of products monitored by WoodFlow remained quite similar to the previous month. When comparing the volume exported, sawn softwood accounted for 41% (6% less than the previous month), followed by Softwood Plywood with 33% (6% more than the previous month), and hardwood logs with 17%.
In the distribution by amount paid, the highest sum is for sawn softwood (US$ 59.8 million), followed by Softwood Plywood (US$ 44.6 million).
