In July 2022, Brazil's plywood exports to the U.S. fell by 62% year-on-year to 66 thousand m3. Plywood deliveries from Brazil to Mexico decreased by 14% to 15 thousand m3, deliveries to Italy fell by 38% to 11 thousand m3.
In July, the total volume of plywood exports from Brazil fell by 40% year-on-year to 170 thousand m3. The export value fell 59% to $70 million and the average price fell 33% to $414 per m3.
Brazil's plywood exports to the U.S. have been falling for the third month after the Federal Court of Ft. Lauderdale issued a permanent injunction on May 24 requiring the revocation of all PS 1 certificates issued by PFS-TECO to over a dozen Brazilian mills producing structural plywood for the U.S. market. The decision forced wholesalers and retailers to immediately consider these products off-grade and to either obliterate the PS 1 stamp on the plywood before resale or destroy it.
In May, the volume of plywood shipments from Brazil to the U.S. fell by 38%, and in June decreased by 27%. The U.S. is the main export market for Brazilian plywood. In January-July 2022, the U.S. share in Brazilian plywood exports decreased by 8.1 pp to 43%.
