Brazilian eucalyptus log prices have risen by 25% in the past year, according to Wood Resource Quarterly.
Supply and demand for eucalyptus logs in Brazil have been in balance, resulting in stable log prices, while the strengthening real has meant log costs have increased in US dollar terms.
Prices have now gone up 50% in the past five years, with logs now close to the global hardwood fibre price index.
As well as pulp and panel industry demand, sawmills which produce eucalyptus and pine for the construction market are also demanding the species, though its share of the harvest volume last year was only 4%.
During the past five years, the area of eucalyptus plantations has expanded by more than 7% annually.
