Copec says China pulp market could be challenging in face of US tariffs
"Most of our customers that export, especially to the U.S., really don't know what the price of their goods is going to be," said Cristian Infante, who heads Copec's forestry arm Arauco (ANTCOC.UL), in a presentation. "So they're trying to buy as little as possible."
Arauco, which sells pulp and wooden panels worldwide, contributes the bulk of Copec's earnings, but saw its core earnings dip over 22% in the first three months of 2025 as pulp prices fell and it shipped smaller volumes.
Infante warned that prices could continue to go down in May.
"When Chinese customers feel that the prices are close to the bottom, they will start talking. When that will be, that's a very good question," he added, noting that recent news on talks between the U.S. and China had made futures markets jump.
Regarding Copec's U.S. market, Infante said he considered the market stable for the time being, although costs had increased for components of resins used in wood panels amid volatility over new import tax policies.
"I wouldn't say it's booming," he said. "All this volatility that we've seen due to the tariff issue has affected the market."
In Europe, meanwhile, Copec said uncertainty and concerns are growing in the face of the possible implementation of new U.S. tariffs and potential trade conflicts with other countries.
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