According to the
Brazilian Association of Mechanically-Processed Timber
Industry (ABIMCI), the Brazilian industry´s optimism
has its foundation in the tripling of plywood exports to the US since March
this year. However, Brazil’s
fluctuating exchange rate is of concern to entrepreneurs.
The dollar was around R$ 2.25 in April but the industry would like to see a rate between R$ 2.70 and R$ 2.80. According to ABIMCI, exports of plywood to other markets such as Turkey have been falling but efforts are being made to expand markets in Egypt and Saudi Arabia. While prospects in international markets are improving growth of sales in the domestic market is weak.
According to the Civil Construction Industry Union of São Paulo State (SINDUSCON-SP) domestic civil construction is expected to only grow between 1% and 2% in 2014 against the 2.8% previously forecast. Weak domestic demand will mean more wood products could be made available for export which could affect price stability.
ABIMCI will hold a national meeting with plywood manufacturers in October to discuss market issues, products standardisation, certification and to develop strategies for the domestic and international markets.
