Exports of pulp are expected to grow further thanks to increased demand from the Chinese, North American and European markets and the favorable exchange rate, according to data from Forest2Market do Brasil. The pulp export is at a prosperous moment, with prices very advantageous for the producers.
Due to the good use of this moment by the companies of the sector, Brazil has been gaining more and more space as the largest exporter of pulp in the world, leaving behind competitors such as Canada, the United States, Chile and Indonesia. Currently, Brazil is the second largest producer of pulp in the world, second only to the US, and the main exporter. The expectation is that this scenario will continue until 2019, since demand growth is linear, but supply does not keep pace.
Since 2007, pulp exports have found a favorable ground, growing gradually. “In the last ten years, there was a growth of 110% (8% pa) in value and 111% (8% pa) in volume, reaching a historic level of exports in this segment,” says Marcelo Schmid, director of Forest2Maket do Brasil .
“In the period in question, we see the increase in demand from the foreign market for pulp, mainly from China, the United States and Europe,” says Schmid. According to him, the exchange rate is also favorable, contributing to the increase of exports. “The main competitors in Brazil do not have the capacity to keep up with this demand, which causes the country to shoot in the ranking of the main exporters.”
In 2017, the Chinese market was the main importer of Brazilian pulp, followed by the European and North American markets. “The national pulp market is experiencing an interesting moment,” says the expert. “The Brazilian pulp and paper segment was the main driver of expansion of our sector in the last 15 years. About 70% of the forests planted in our country are directly or indirectly linked to the segment. “
In 2017, the states that obtained the best performance in the country’s pulp exports were Bahia, Espirito Santo and Mato Grosso do Sul. For the latter, pulp is so important that it corresponded to the most exported product at the beginning of 2018.
“The productive capacity of the Brazilian pulp industry has been increasing year after year, with the last major expansion being the doubling of the Fibria mill in Mato Grosso do Sul in 2017,” Schmid says. “According to the projection of different experts, the price increase cycle should last until 2019”.
This and next year, pulp exports should continue to grow and Brazil will continue to be an attractive market – for example, the recent acquisitions of Fibria by Suzano and Lwarcell by the Royal Golden Eagle group (RGE), owner of April . In addition, a new pulp mill is scheduled to open in Mato Grosso do Sul later this year.
This text was translated by machine from Brazilian Portuguese.