Alexandre Rocha
São Paulo – The Brazilian cellulose and paper sector expects to end 2003 with a trade balance surplus of around US$ 2.6 billion, with export around US$ 3.1 billion and import at around US$ 500 million, states the chairman of the Brazilian Pulp and Paper Association (Bracelpa) board of directors, Boris Tabacof, who is also a member of the Grupo Suzano (Suzano Holding) board, one of the largest producers in the sector in Brazil.
"We are only not self-sufficient in newsprint paper and long fiber cellulose, extracted from pine trees", he stated.
The numbers represent an expressive growth with regard to last year, when US$ 2.1 billion was exported and the trade balance surplus was US$ 1.5 billion.
Tabacof relates this increase to the large recent investment in the sector, causing a 1 million ton increase in cellulose production. "This increase was almost all exported", he stated.
Last year, 8 million tons of cellulose were produced, being 3.7 million sold abroad. In the case of paper, 7.7 million tons were produced, being 1.4 million tons exported.
Up to September this year, export totaled 1.319 million tons of paper, equivalent to US$ 818.8 million, and 3.391 million tons of cellulose, or US$ 1.98 billion, informs the Development, Industry and Foreign Trade Ministry.
The main client, in monetary terms, is the United States, at US$ 131.5 million in paper and US$ 320.8 million in cellulose. In volume, though, the largest importer of Brazilian paper was Argentina, at 201 thousand tons.
Investment
Producers in the sector have ambitious plans. According to statements by the Bracelpa president, Osmar Zogbi, published on the entity site, the sector intends to invest US$ 14.4 billion in production over the next 10 years.
"This is not hard to reach, as investment over the last ten years was US$ 12 billion", stated Zogbi, in the statement published on the site.
With this investment, the industry intends to double cellulose export volume and increase foreign paper trading by 50%, taking the trade balance to US$ 30.4 billion in the period, as well as generating 60,700 new jobs. The sector currently employs 100,000 people in the forestry and industrial area.
Tabacof states the importance of the total trade balance increase. On Wednesday (22), during a foreign trade debate at the Federation of Industries of the State of São Paulo (Fiesp), he said that surplus growth may help the country reduce external vulnerability.
Arabs
Internationally, one of the focuses of industry interest is the Arab market. Tabacof stated that export to the region is still small, but "has been rising". He went on to say that Arab businessmen are investing in paper and packaging factories, increasing demand for cellulose as raw material.
Tabacof believes that the main market in the Arab countries is Egypt. "We have exported large amounts to the country", he said. Outside the Arab world, but still in the Middle East, Tabacof said that the sector has also sold large amounts to Iran.
"We are interested in increasing sales to the Arab countries. It is a highly competitive market, but we have quality and prices supporting our trade increase", he pointed out.
Last year, the Brazilian cellulose and paper industry revenue was US$ 5.8 billion. Tabacof believes that this figure is set to rise to around US$ 7 billion in 2003. The sector includes 220 companies spread over 16 states.
According to Bracelpa data, Brazil is in the seventh largest cellulose producer in the world, and is the first in production and export of short fiber cellulose, extracted from eucalyptus. The country is also the eleventh producer of paper in the world. Tabacof says that growth indices for the sector have been above those for the Brazilian GDP.
