Brazil’s pulp, paper and wood panel exports declined during the first half of 2026 as weaker international shipments coincided with a sharp increase in paper imports, prompting the country’s forest products industry to seek higher duties on imported cutsize paper.

Brazilian producers exported US$7.5 billion of pulp, paper and wood panels between January and June, down 5.9% year on year, according to data from the Brazilian Tree Industry association, Indústria Brasileira de Árvores (Ibá).

Sales to North America were particularly weak, falling 22.9%, while Brazil’s paper imports increased 30.5%.

The changing trade flows have raised concerns among domestic paper manufacturers, particularly as imports of printing and writing grades accelerate.

Pulp Export Volumes Fall 10.5%

Pulp remained the largest contributor to Brazil’s forest products exports during the six-month period.

Pulp export revenue reached approximately US$5.2 billion, while volumes declined 10.5% to 9.4 million tonnes.

Domestic pulp production was comparatively stable at approximately 13.9 million tonnes.

China remained the industry’s largest export destination, accounting for about US$2.5 billion in sales despite a 2.2% year-on-year decline.

Exports to Europe decreased 0.3%.

The decline was considerably stronger in North America, where sector export sales fell 22.9%.

Ibá President Paulo Hartung attributed the difficult trading environment to geopolitical conflicts, protectionist measures and changes in international supply chains.

He also warned that excess production from some countries is increasingly being redirected toward Latin America, including Brazil.

Brazil Paper Imports Jump 30.5%

While exports weakened, Brazil experienced the opposite trend in its domestic paper market.

Brazilian mills increased paper production 2.4% to 5.7 million tonnes during the first half of 2026.

Paper export revenue reached approximately US$1.2 billion, an increase of 0.5% from the previous year.

Imports, however, rose much faster.

Total paper imports increased 30.5%, while imports of printing and writing paper surged 67.6%.

The increase is notable because Brazil has substantial domestic paper manufacturing capacity.

According to Ibá, Brazilian mills have the capacity to produce approximately 143% of domestic paper consumption.

The association argues that changing international trade conditions are pushing additional volumes of imported paper into the Brazilian market.

Ibá Seeks 30% Duty on Cutsize Paper

In late July, Ibá petitioned Brazil’s Secretariat of Foreign Trade to increase the import tariff on cutsize paper from 16% to 30%.

Cutsize products include standardized office paper formats such as A4 and A3 sheets.

Ibá said imports of these grades increased 160% between January and May 2026.

The association also reported that the average imported price declined 14% to approximately US$0.77 per kilogram.

The requested 30% rate represents the maximum permitted under the Mercosur common external tariff framework cited by the association.

Ibá International Director José Carlos da Fonseca Júnior said Brazilian producers historically competed internationally without relying heavily on protectionist measures but are now facing an unusual influx of lower-priced cutsize products.

One concern is the changing flow of fiber through international markets.

Brazil exports substantial volumes of market pulp, including to China, while finished paper manufactured abroad can subsequently enter Brazil and compete with domestically produced grades.

Paperboard Tariffs Also Under Review

Cutsize paper is not the industry’s only concern.

Ibá has also sought higher protection for imported paperboard used in pharmaceutical, food and hygiene packaging.

The association filed another request in June related to a paperboard tariff introduced in 2024 and due to expire in October.

Ibá previously requested a 25% tariff but received a 16% rate. It is now seeking an increase to 35%, according to the information released.

The two applications indicate that trade pressure is extending beyond printing and writing papers into packaging grades.

Global Trade Shifts Put Pressure on Brazilian Producers

Brazil occupies an unusual position in global forest products trade.

It is a major producer and exporter of pulp while also maintaining substantial domestic paper and packaging production.

That means changes in trade policy elsewhere can affect the country from several directions.

Restrictions placed on paper in one major market can redirect finished products toward alternative destinations. At the same time, tariffs affecting Brazilian exports can make traditional overseas markets less competitive for domestic producers.

Ibá is therefore advocating both stronger protection for selected domestic paper markets and greater diversification of Brazil’s export destinations.

Hartung has called for Brazil to expand its presence across international markets while maintaining trade negotiations.

The forest products sector accounted for approximately 4% of Brazil’s total exports during the first half of 2026, compared with 4.8% a year earlier.

Its contribution to the country’s agribusiness trade balance also declined from 9.7% to 8.6%.

Trade Flows Become a Growing Issue for Paper Markets

The first-half figures illustrate how rapidly trade conditions can affect pulp and paper markets even when domestic production remains relatively stable.

Brazil produced 5.7 million tonnes of paper during the period, up 2.4%, yet imports increased by more than 30%.

For printing and writing grades, the 67.6% increase was substantially larger.

The industry’s request to raise the cutsize paper tariff to 30% demonstrates the pressure this shift is creating for domestic producers.

Whether higher tariffs are ultimately approved will determine part of the competitive environment for Brazilian office paper manufacturers.

The broader issue, however, extends beyond one paper grade.

As tariffs and trade restrictions alter established routes between China, North America, Europe and Latin America, Brazil’s pulp and paper industry is increasingly having to manage both weaker demand in some export markets and greater competition from imported finished paper at home.

Source: Indústria Brasileira de Árvores (Ibá) and Wood Central.

Last Updated on 31/08/2026 by Jota Machinery