Itaú BBA - Pulp and Paper: Promising outlook for exports likely to boost industry growth in the years ahead

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Pulp and Paper: Promising outlook for exports likely to boost industry growth in the years ahead

August 10, 2015

Exchange rate depreciation and investments lift industry growth

• Brazil is a key player in the pulp and paper industry in terms of production and exports. During the past decade, pulp production grew 75% while paper production advanced 23.1%. Pulp production is focused on exports, whereas most paper output heads to the domestic market. 

• Pulp exports have been growing at a fast pace, and exchange rate depreciation will likely encourage this trend. However, the slowdown in the Chinese economy may reduce pulp demand.

• In the short term, the paper segment will likely be affected by the decline in the domestic economy. In the long run, however, paper production could return to moderate growth levels.


 

Please open the attached pdf to read the full report.

  



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