Brazilian furniture exports reached $980 million in 2008
Dec 22, 2009. Last year, exports of Brazilian furniture were over $980 million but for 2009 the strength of the real against the dollar has become an obstacle to expanding exports.
Dec 22, 2009. /Lesprom Network/. Last year, exports of Brazilian furniture were over $980 million but for 2009 the strength of the real against the dollar has become an obstacle to expanding exports, ITTO reported.
However, the strong real means that imported raw materials for the furniture sector have become cheaper such that it is now feasible to buy raw materials at a competitive cost, to process and add value and then export the finished product.
As pointed out by some manufacturers, the margin saved on raw materials partially compensates for lower export sales, the result of the unfavorable exchange. This is especially true for the solid wood and high-end furniture industry when importing hardwoods and veneer from the United States.
Out of the total volume of 7.2 million cubic meters of sawnwood and wood panels consumed in 2008 by the furniture industry in Brazil, solid hardwood and pine accounted for 2.3 million cubic metres and 1.8 million cubic metres respectively.
But, of this, only 1% of the solid hardwood and 2.9% of the solid pine was imported. The level of raw material imports by Brazilian manufacturers is likely to grow if the real retains its strength.