Despite Brazil’s trade balance showing a surplus in September, the volume of timber product exports remained stable when comparing August and September of this year. The expected resurgence in volumes did not materialize, and it was further compounded by lower compensation for Brazilian producers.
The total volume of products analyzed by WoodFlow in September stayed at the same level as the previous month, according to data from the ComexStat portal of the Ministry of Development, Industry, Trade, and Services. When comparing the volume exported in the same month of 2022, there is a 24% reduction.
This stagnation in volumes is exacerbated by lower compensation for Brazilian producers. The decline in payments in September was 15% compared to August of this year. When compared to September 2022, the reduction in values is 25%.
Source: WoodFlow with ComexStat data
It was a month of many challenges for Brazilian producers. And the outlook is not very encouraging for the coming months, mainly due to the high interest rates practiced in the US, our largest buyer, which hinders consumption in that country,” warned Gustavo Milazzo, CEO of WoodFlow.
Segment Analysis
In September, the percentage distribution of products monitored by WoodFlow remained quite similar to the previous month. When comparing the volume exported, sawn softwood accounted for 47%, followed by Softwood Plywood (27%), and hardwood logs (19%).
Source: WoodFlow with ComexStat data
In terms of value paid, the highest amount goes to sawn softwood (US$ 72.4 million), followed by Softwood Plywood (US$ 48.7 million).
Source: WoodFlow with ComexStat data