Brazil

Brazil's Timber Industry Faces External Instability

According to a seminar organised by the WoodFlow platform, after a volatile first quarter for Brazilian wood product exports, the industry continues to face an international environment that requires companies to pay greater attention. Based on data compiled by STCP, in the first four months of 2026, exports of the eight monitored wood products totalled approximately US$770 million, compared with about US$1 billion in the same period last year, representing a decline of nearly 30% in export value.

This performance reflects the instability of the external environment, including changes in US tariff policy, the geopolitical impact of the US Iran war, logistics cost pressures and fluctuations in international demand. Despite the cumulative decline over the year, some products, such as pine sawn timber and plywood, showed signs of recovery in April, with both export volume and value growing significantly compared with March.

Brazil's Pine Plywood Exports to the US Rebound Sharply in April

After a downturn in Brazilian wood product exports in the first quarter, April brought more positive signs for the sector. Exports of the 10 wood products monitored by WoodFlow reached 771,300 cubic metres in April, compared with 515,500 cubic metres in March, an increase of 38%.

This recovery was mainly driven by the North American market, largely due to the reduction of tariffs from 50% to 10%. Gustavo Milazzo, CEO of WoodFlow, said that in April the North American market consumed 33% of exported products.

In March, pine plywood exports to the US were only US$8.2 million, but in April they rebounded to 2025 levels, reaching US$26.4 million.

Brazilian Timber Exports to Mexico and Spain Grow

Data released by Brazilian data platform Datamar show that from January to April 2026, Brazil's exports of wood and wood products totalled 123,673 TEUs, a decrease of 6.3% compared with the same period last year.

From January to April 2026, sawnwood was Brazil's largest wood export category, accounting for 32.5%, followed by plywood, veneer and laminated wood with 23.4%, wood fibreboard with 9.8%, and logs with 9.1%.

The United States remained the main destination, with imports of 22,571 TEUs, but also registered a sharp decline of 31.2%. Chinese imports also fell sharply, to 8,477 TEUs, a drop of 44.7%. Conversely, Mexico grew by 34.4%, Italy by 23.4%, India by 15.9%, Spain by 113.0%, and Colombia by 100.4%.

The ports dominating wood exports are concentrated in southern Brazil and along the South Atlantic coast. From January to April 2026, the Port of Paranaguá topped the list with a throughput of 38,696 TEUs, followed by Navegantes, Itapoá, Santos, Itajaí and Rio Grande.

Brazilian Furniture Exports Start Weak but Recover Month by Month

According to the Brazilian Furniture Industry Association (ABIMÓVEL), in the first quarter of 2026, exports of finished furniture and mattresses from Brazil totalled about US$151.2 million, down from US$173.2 million in the same period of 2025. Compared with the same period last year, this represents a decline of about 12.7%, mainly due to weak market conditions at the beginning of the year, trade adjustments, tariff barriers, and greater caution among international buyers.

Nevertheless, monthly data show improvement. Exports in January were US$38.9 million, somewhat weak; in February they rose to US$47.0 million; and in March they reached US$65.2 million. In other words, the quarter does not represent a full recovery, but it indicates the market's ability to adapt.

By destination, the United States remained the largest buyer of Brazilian furniture and mattresses, with cumulative imports of US$24.3 million from January to March, accounting for 16.1% of Brazil's total exports. However, this share is far lower than the 27.8% recorded in the same period of 2025 and 33.1% in 2024. In value terms, exports to the US fell by nearly half compared with the same period last year.

Other destinations gained corresponding market shares. In the quarter, Uruguay accounted for 13.7% of Brazil's total furniture and mattress exports, reaching US$20.7 million. It was followed by Peru, Chile, Paraguay and Argentina. The growth in South American markets highlights the importance of regional proximity, commercial adaptability and destination diversification in an increasingly complex and volatile external environment.

Mexico

Mexico Launches Five Year National Forestry Program

On 18 May, Mexico's National Forestry Program (PNF) 2026-2030 was published in the Federal Official Gazette (DOF). It is a policy framework designed to guide strategies for forest conservation, restoration and sustainable use. The country continues to face deforestation pressure related to the expansion of agriculture and livestock farming, as well as ecosystem degradation. The Program will coordinate the actions of 13 ministries and 14 federal agencies through 5 objectives, 21 strategies and 146 lines of action, focusing on productivity, conservation, restoration and institutional capacity building.

The Program aims to increase sustainable forest productivity, strengthen forest ecosystem conservation and environmental services, restore degraded forest areas, curb deforestation, while improving governance, access to financing, technology development and monitoring systems. The authorities say that implementation will incorporate gender and ethnic diversity perspectives as part of a broader inclusive development strategy.

Durango Furniture Cluster Increases Use of Domestic Raw Materials and Explores New Markets

The Chairman of the Durango Furniture and Accessories Innovation Cluster (CIMAT) said that the industry has strengthened its use of domestic raw materials, partly due to a reduction in raw material imports, especially from Central America.

He stressed that companies in the cluster now mainly use domestic raw materials. Regarding exports, he said that exports are being maintained, albeit with some restrictions, and that companies are developing strategies to open new markets, especially in Canada.

In the domestic market, the industry also expects growth through some new development projects, such as multifunctional furniture for small housing units. The cluster is reportedly working with designers, architects and developers to promote such projects.

Forest Technology Supports Sustainable Development in Mexico

In Mexico, forest restoration and environmental technology are becoming increasingly important as companies, academic institutions and civil organisations seek scalable solutions to enhance climate resilience, achieve sustainable land management and capture carbon.

Today, companies have the opportunity to play a more active role in addressing national environmental challenges. For example, PASE has adopted sustainable packaging for its Tag products, using eco friendly inks and artisanal production processes. The packaging also includes a card embedded with chia seeds, designed to encourage users to participate directly in planting and environmental protection activities.

At the same time, academic institutions are stepping up efforts to accelerate technology application in the forestry sector. At a Forest and Technology Forum led by Reforestamos México, participants explored how to more effectively use technological tools for forest managers and local communities. Solutions demonstrated included drone based LiDAR monitoring systems, artificial intelligence platforms for urban tree inventories, mobile apps for species identification, timber management systems, and projects exploring the connection between plant biology and clean energy.

Ecuador

Ecuador's Timber Exports Face External Challenges

Looking ahead to the rest of 2026, Ecuador's timber sector is full of challenges, with external factors threatening its competitiveness and growth. External challenges such as trade friction with Colombia have already led to a drop in sales in some sub sectors.

In addition, regional conflicts have also hindered exports to the Middle East, a major destination for furniture. The furniture industry has had to cope with rising logistics costs, further intensifying operational pressures.

In the face of this situation, the Executive Director of the Ecuadorian Forestry and Wood Industry Association (AIMA), noted that the annual target has been revised from a forecast of more than US$700 million in exports to a more conservative goal. At present, the objective is to maintain current levels and avoid further contraction. Achieving the export target will require both direct negotiations and strengthened cooperation with other production sectors.

Ecuador's Tax Authority: Sales Grew 10.1% in May

According to data from Ecuador's Internal Revenue Service (SRI), in May 2026, commercial sales recorded through electronic receipts reached US$24.2786 billion, an increase of 10.1% compared with US$22.0417 billion reported in the same month of 2025.

Sales growth was seen in multiple economic activities, with construction registering the highest increase at 24.5% year on year, followed by tourism at 19.4%, transport and storage at 17.5%, commerce at 14.7%, and real estate at 10.8%.

The SRI said that these results reflect further dynamism in domestic economic activity, driven by stronger domestic consumption, increased production activity, and the positive effects of government measures to promote economic development and increase commercial activity.

The tax authority also noted that the national holiday in May also contributed significantly to growth in several economic sectors.

Ecuador's Agriculture, Livestock and Forestry Sector Contracts in Q1

The latest Monthly Economic Activity Indicator report released by the Central Bank of Ecuador shows that from January to March 2026, Ecuador's economy accumulated growth of 2.3%.

The report reflects that, against a backdrop of energy challenges, a difficult security situation, and a slowdown in the global economy, sectors such as services, oil and manufacturing drove the economic recovery.

Official data show that in March 2026, manufacturing grew by 1.3% year on year, and trade grew by 0.6%.

Construction also showed signs of recovery after several months of challenges, achieving positive growth of 0.8%.

Not all sectors showed growth. Agriculture, livestock, forestry and fisheries fell by 3.3%, contracting for three consecutive months. The Central Bank said this occurred against the backdrop of slowing international demand for cocoa.