Increase in paper sales indicates market recovery
Gazeta Mercantil 04/27/2009
The Brazilian production of cardboard, mainly used in the packaging of food and hygiene and cleaning products, increased 44.3% in March compared to February, according to data disclosed Friday by the Brazilian Pulp and Paper Association (Bracelpa). In the same period, the sales of cardboard in the Brazilian market registered an increase of 19.4%. However, in relation to March/2008 there was a 2.6% fall in the sales, amounting to a 16.8% reduction in the first quarter of this year compared to the same period of 2008.
According to the entity, the preliminary results of the performance of the pulp and paper sector in March already showed a resumption of the activity in the domestic and foreign market, mainly with recovery in the paper segment, whose production increased 12.7% from February to March and 0.5% compared to March/2008. In the quarter, however, the production closed at a 3.5% fall in relation to the same period of last year. According to the Executive President of Bracelpa, Elizabeth de Carvalhaes, cardboard is a regulator of consumption used as packaging for many products, specially the non durable like laundry detergent boxes, boxes for frozen foods and cosmetics (toothpaste, soap, perfume, and so on). "Because of that, the increase of the production of such paper is an indicator of the resumption of consumption". Regarding the production of papers for the manufacturing of packaging like corrugated fiberboard increased 14.7% in March compares to February, growing 2.4% in comparison with March/2008, but it decreased 1.7% in the quarterly comparison. In the domestic market, the sales of paper for packaging were 16.4% greater last month in relation to February, but it presented falls of 2.3% compared to March last year and 10.2% in the quarter. The production of pulp, however, retracted 2.5% in March compared to February and 13% compared to the previous year, accumulating loses of 5.4% in the first quarter of this year in relation to the same period of 2008. The exports of pulp last month withdrew 5.7% in the monthly comparison, but they increased 9.7% compared to March/2008 and 11.2% in the quarter.