Expansions in the pulp sector should decline due to lack of wood

In the Brazilian state of Mato Grosso do Sul, which has been consolidating itself as one of the main centers of the forestry sector in the country, there is a fierce dispute for eucalyptus, due to the fact that several pulp mills are starting or expanding their operations in the state.

However, the concentration of high demand for wood in the region has hampered access to this input, which has a limited supply and rising prices.

This week, during the Fastmarkets RISI Latin American conference, executives from the main pulp producers in the country discussed the topic, in a panel on the sector.

“It is very difficult to see new projects happening in Brazil in the short term, due to lack of wood”, Walter Schalka, CEO of Suzano. The executive exemplified with the expansion of Bracell, which ensured the supply of wood available in São Paulo state for its factory in the city of Lençóis Paulista and also advanced to Mato Grosso do Sul, also in search of this resource, creating an additional demand in the state.

“From my perspective, Brazil is starting to run out of wood. We do not have wood available for short-term competitive projects” emphasized the CEO.

Rodrigo Libabar, commercial and logistics director at Eldorado Brasil, has the same perception, and adds: “There will be no economically viable wood in the long term [if planting does not start now]”. The director also highlighted that there is potential in Brazil for industry growth, as long as it is “planned and organized”.