Copec says the China’s pulp market could be a challenge in front of US rates

(Reuters) – The Chilean industrial conglomerate Copec said on Tuesday that the Chinese market for its forest products could be harder if paper manufacturers struggle to boost sales in the midst of uncertainty by U.S. fare policies.

“Most of our customers, especially in the United States, do not really know what the price of their goods will be,” said Cristian Infante, who runs the Copec Arauco forest arm in a presentation. “So they try to buy as little as possible.”

Arauco, who sells pulp and wood panels worldwide, brings most of COPEC’s earnings, but saw that his basic earnings were plunged by 22% in the first three months of 2025 as the pulp prices fell and sent minor volumes.

Infante warned that prices could continue to go down in May.

“When Chinese customers feel that prices are near the bottom, they will start talking. When it will be, this is a very good question,” he said, emphasizing that recent news about conversations between the United States and China had jumped the markets for future.

As for the North -American Copec market, Infante said he considered the stable market for the moment, although the costs had increased for the components of the resins used in wooden panels in the midst of volatility on new import tax policies.

“I would not say it is boom,” he said. “All this volatility we have seen due to the fare question has affected the market.”

In Europe, meanwhile, Copec said that uncertainty and concerns grow in the face of the possible implementation of new United States rates and possible commercial conflicts with other countries.

(Report by Sarah Morland; edition of Kylie Madry)