In March, Brazilian export lumber price jumps 30%

[Andrew_Gibson]

In March, Brazilian export lumber price jumps 30%

In March 2022, Brazil’s exports of lumber expanded 10.4% year-on-year to 303.6 thousand m3. According to Lesprom Analytics, the value of exports soared 43.6% to $91.7 million. Average price of lumber jumped 30.0% to $302.2 per m3.

https://www.lesprom.com/en/news/In_March_Brazilian_export_lumber_price_jumps_30_102919/

[Andrew_Gibson]

@David_Stallcop is the jump in Brazilian export lumber prices is tied to …

Exponential increase in inquiries out of Europe for South American lumber and hardwood plywood - David @ Stallcop Group LLC

Sawmills and traders across South America are seeing an exponential increase in inquiries out of Europe for FSC and PEFC South American lumber and hardwood plywood. The sudden shock in the European wood product value chain has created a real and palpable fear of massive shortages due to the ban on wood products imports from Russia, Belarus, and the Ukraine. This will put further upward price pressure and increased competition for US importers and distributors of South American lumber and panel p…

Did those inquiries out of Europe have a significant impact on the South American Lumber market?

[David_Stallcop]

Andrew, both demand in Europe increased and inflation in Brazil rose 11.3%. But the average price is still only at $302.20/m3. So, if that was converted to a 2x4 count it would only be $467/mbf. So, even with the winds blowing prices up 30%, Brazil is still the cheapest fiber in the world.

Brazilian inflation hits fresh 19-year high in March

[Andrew_Gibson]

How interesting.

Further, at those prices, how come we rarely hear about Brazilian wood flowing into the states?

[Michael_Haas]

Mostly Plywood!!!

[David_Stallcop]

It’s mainly cut to size packaging and crating lumber, pickets and APG boards to be treated for home centers.

[Andrew_Gibson]

Is it legal to build a home out of Brazillian lumber in the United States?

[David_Stallcop]

I have not seen any structurally certified lumber being shipped from Brazil to the US. It’s mostly packaging and crating material and fencing components plus appearance grade boards for pressure treating for the retail markets. Brazilian pine is basically Southern Yellow Pine grown in Brazil. It grows much faster so it is not as strong as SYP.

[Andrew_Gibson]

Do you think there are many big untapped markets within the international trade of wood? If so, do you think there are any opportunities for trade from Brazil to the US?

[David_Stallcop]

Andrew, there aren’t many untapped markets but there is an unlimited amount of creativity and entrepreneurship to utilize existing fiber for new and exciting applications!

[Andrew_Gibson]

Do you think a platform like Pakira could help entrepreneurs harness their creativity in identifying and utilizing new and exciting applications for fiber?

[David_Stallcop]

Absolutely, we all need to increase our dialog with each other in the forum to make it happen.

[Michael_Lingley]

We should chat about this . This fits into the original LumberCentral model from the get go. I will reach out to my previous contacts in Brazil . Might take a few days , chat next week ?

[Andrew_Gibson]

Wow, I am excited to hear about this! I just sent you a message on Pakira’s chat, lets get on a call and see if we can invite some of those Brazil contacts onto Pakira. I’d be very interested to learn how they have been responding to the increased European demand.

[Michael_Lingley]

Just ran into to a dead end with a major supplier , they might have closed shop. Try to get on the phone see what happens.