Despite the disappointing economic news from Brazil, the forest plantation sector had a good year in 2015.
Exports of pulp, wood panels and paper increased due to the depreciation of the Brazilian currency against the American dollar, ITTO reported. Revenue from Brazil's exports in 2015 totalled US$7.8 billion compared to US$ 7.4 billion in 2014.
According to the Brazilian Tree Industry Association (IBA), the sector’s trade balance in 2015 was US$6.5 billion, representing an increase of 17% compared to 2014. In 2016, the sector will continue to face the same challenges as in 2015. In January 2016 revenue from pulp, wood panels and paper exports totalled US$646 million, a 9.9% increase over the same period of last year.
In a web announcement, Moody's global paper and forest products industry outlook says ”the global paper and forest products industry is stable and operating earnings growth for publication producers in Latin America will remain as last year.”
The announcement continues to point out that “depreciated currencies will continue to mitigate weak international prices and support local operating margins but that weak economic expansion in Latin America will limit domestic paper demand.”
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