Pine log prices increased over 300% since 2000 in Brazil
. Sawmills and other solidwood companies in the Brazilian state of Paraná have faced serious difficulties to remain in the market.
Aug 20, 2007. /Lesprom Network/. According to the Gazeta do Povo, sawmills and other solidwood companies in the state of Paraná have faced serious difficulties to remain in the market. In the last three years, revenues have been affected by the falling US dollar and plywood prices in the international market. As many companies do not own forests, they face increasing log prices. Estimates show that pine log prices have increased over 300% since 2000. Small and medium-sized companies that do not have a solid and planned forest base have serious difficulties buying logs and many are shutting down, according to the Department of Forest Plantations of the Secretariat of Agricultural and Supply (SEAB). The Paraná Association of Forest Based Companies (APRE), which represented about 300 companies and 170 000 workers, pointed out that in the last three years, 30 000 jobs were lost.
Since the sector was for a long time oriented toward the international market, the sector now faces a problem of decreasing exports. According to the ministry of development, the revenue of Paraná forest companies was $496 million in the first quarter of 2007. Losses are even bigger in Brazilian reals since the US dollar fell more than 30% during the period. Retraction from the international market caused the wood shortage to become less serious. If the US dollar had remained at BRL 3.00/USD (currently it is slightly below 2.00/USD) and the price of plywood had not fallen, APRE estimates indicated little pine plantation would be left.