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Forestry Guilds Warn of "Disproportionate" Impact Due to Price Drop and Tensions with the U.S.

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Local forestry guilds warn that the region is experiencing a "disproportionate impact" on its exports due to the combination of falling international prices and trade uncertainty with the United States.

The decline was revealed by the National Statistics Institute's (INE) Forestry Export Bulletin No. 10, which highlighted that regional forestry shipments reached US$190.2 million in August, representing a 37.3% drop compared to the same month in 2024.

The report details that within the sector, the manufacturing of pulp, paper, and cardboard was the activity that most contributed to the decline, with US$98.3 million and a negative variation of 42.8%, while forestry products totaled US$91.7 million, with a decrease of 30%.

Together, both activities accounted for 99.9% of the sector's exports and 56.3% of the regional total, reaffirming their structural importance in the Biobío economy.

DROP IN PRICES

From the Chilean Wood Corporation (Corma), its general manager, Antonio Minte, explained that the regional decline is part of a national trend of a 24% contraction in forestry exports during August, a trend mainly attributed to the decline in international prices.

"The main category of the export basket, pulp and paper, which represented 62.2% of total exports in August, experienced a 19% drop in its value, due more to a price decrease than a volume decrease," stated Minte.

According to the leader, the exported volume only decreased by 6%, but the fall in international prices had a greater impact on the Biobío region, which concentrates 45% of the national total exported and operates the main forestry port, DP World Lirquén, responsible for 39% of the country's shipments.

"The price drop has a disproportionate effect on regional figures because Biobío is the export heart of the Chilean forestry sector," warned Minte.

Despite the monthly contraction, Minte highlighted that the accumulated amount of Chilean forestry exports between January and August 2025 remains relatively stable, with a moderate negative variation of 16.4% compared to the same period in 2024.

HALT IN PURCHASE DECISIONS

For the director of Pymemad, Michel Esquerre, the decline is due to external factors, especially the uncertainty generated by the tariffs imposed by the United States on certain forestry products.

"Basically, this decrease is due to sawn wood, which has suffered from the uncertainty of Trump's tariffs, slowing down all markets. Buyers are reducing inventories and waiting to see how the consequences of these measures will be resolved,"

explained Esquerre.

According to the leader, the Ministry of Foreign Affairs is working on negotiations with the United States "so that the tariffs have the least possible impact on Chile," although he warned that it is "a process that will take time."

"This readjustment of exports is due to a scenario of direct uncertainty, which slows down harvesting, transportation, and the entire internal logistics chain of the forestry sector. That affects employability and generates more uncertainty," indicated Esquerre.

The representative added that the resilience of SMEs has a limit, so he called on the State to support with measures to reactivate the domestic market, such as wood construction, support for small and medium forest owners, and new sectoral financing lines.

Source:La Tribuna