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Copec warns that the China pulp market may be challenged by US tariffs

Empresas Copec, a Chilean conglomerate of industrial companies, said that the Chinese market could be more difficult for its forestry product if paper manufacturers struggle to increase sales due to uncertainty about U.S. Tariff policies.

In a recent presentation, Cristian Infante, the head of Copec’s forestry division Arauco, said that most of the customers who export to the U.S. don’t really know the price at which their goods will be sold. "They're trying as hard as they can to buy as little."

Arauco sells wood panels and pulp worldwide and contributes to the majority of Copec’s earnings. However, its core earnings fell by over 22% during the first quarter of 2025 due to lower pulp prices and smaller volume shipped.

Infante warns that prices may continue to fall in May.

When Chinese customers start to feel that prices are near the bottom of the market, they'll start talking. "When that will happen, is a good question," he said, noting recent news about

Talks between the U.S.

had made futures markets jump.

Infante, Copec's U.S. Market Director, said that he viewed the market as stable at the moment, despite the fact that costs for resins used to make wood panels had increased due to the volatility of new import tax policies.

He said, "I wouldn’t say that it’s booming." "This volatility we've experienced due to the tariff problem has affected the market."

Copec, however, said that in Europe, uncertainty and concern are increasing due to the potential implementation of new U.S. Tariffs and possible trade conflicts with other nations. (Reporting and editing by Kyra Madry; Sarah Morland is the reporter)

(source: Reuters)