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Forest2Market do Brasil’s July Benchmark Shows Expected Timber Price Decline after Heavy Rains Drive June Prices Higher

Posted by Marcelo Schmid on August 29, 2014

Forest2Market do Brasil’s July benchmark report shows an expected drop in timber prices as the effects of heavy rains abated. The rain impacted logistics in June, and wood product costs rose as a result. The June report showed that pine pulpwood (8-18 cm) prices increased by a volume weighted average of 4 percent from April through June of 2014.

July’s benchmark report confirmed Forest2Market do Brasil’s expectations that prices would fall once the temporary effects of the rain on production costs subsided.  “Our report shows a pine pulpwood price decline of more than 6% from June to July,” says Marcelo Schmid, manager of Forest2Market do Brasil.

This report is the second issue of Forest2Market do Brasil’s benchmark, a monthly timber price benchmark report for the Brazilian forest products industry and the only transaction-based report of timber price and price components available in the Brazilian market.

“This is the first time a timber price benchmark report has been able to capture these small price variations over short periods of time,” says Luis Costa, commercial manager of RMS do Brasil. Now that these changes can be quantified with transaction data from Forest2Market do Brasil, forest products companies can use this information to make more confident decisions related to their businesses.

Besides continuing to expand its pine mill customer base in southern Brazil, Forest2Market do Brasil is now collecting Eucalyptus transaction data from customers in other regions of the county. “In the next months,” said Schmid, “we will expand our coverage of Brazilian markets and bring the same high quality transaction data to forest products companies operating in other timber producing areas of Brazil.”

Learn more about Forest2Market do Brasil and our delivered price benchmark for Brazilian forest products companies:

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Topics: Brazil timber prices