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Forestry Shipments Grow 5% in the First Half of the Year

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• A combination of higher volumes and better pulp prices explained the result. China captured 36.5% of the shipments.

Forestry exports recorded a 4.9% annual increase during the first half of 2024, reaching a total of US$2.906 billion, according to data from the Forestry Institute (Infor) of the Ministry of Agriculture.

According to Infor, shipments in June reached US$457.2 million, a 16.8% increase compared to the same month in 2023. The highest export amount during this period was recorded in January, totaling US$539.1 million.

"The figures are positive for the end of the semester, but they also show a significant rise when comparing June to the same month last year," commented the Minister of Agriculture, Esteban Valenzuela.

The executive director of Infor, Sandra Gacitúa, explained that "the result is mainly due to the increase in shipped volumes, as the average export prices for the January-June 2024 period show year-on-year declines in 12 of the 15 main exported products."

Nevertheless, she noted that "international pulp prices, both for long and short fiber, have recently increased in May and June, mainly due to supply-related events." In this regard, she mentioned "floods in Brazil, the explosion at the Finnish Kemi factory, capacity closures in North America, port disruptions in Finland and Baltimore, and issues in the Panama and Suez Canals."

Additionally, she added that "on the demand side, pulp consumption in Europe has grown by 19% in twelve months. However, it is estimated that the entry of Suzano's new project in Brazil could push prices down, in the case of short fiber pulp, by early 2025."

Valenzuela pointed out that "China remains the country's main trading partner and accounted for 36.5% of the total (exported by Chile) during the first half of the year." The main products shipped to that country belong to the pulp group. The United States, meanwhile, captured 17.7% of forestry shipments.

Source: subscription edition ofEl Mercurio