Charcoal prices up in June alongside strong Brazilian economic data
Charcoal prices are rising in the Brazilian region of Minas Gerais, according to new reports citing investment in infrastructure as the reason behind the increase.
In June 2011, the value of the charcoal produced through sustainably-managed forests in the region rose in response to demand soaring. With the country hosting the Olympics in 2016 and the football Word Cup in 2014, the steel industry – which is a major consumer of charcoal in Brazil – is flourishing.
A spokesperson for one of the major charcoal producers in the region, stated, “Looking further ahead, we believe the outlook continues to be very positive for charcoal prices generally, especially in relation the steel markets where demand continues to be strong.”
The Latin American nation has enjoyed greater prosperity in recent years thanks to measures brought in by current and recent governments. Encouraging foreign investment in sustainable forestry to help supplies of ethically-produced charcoal is just one of these measures.
The country’s GDP increased by 1.3 per cent in the first quarter of 2011, and by 5.4 per cent year-on-year. Planned investment and government expenditure was also up in the first quarter, according to the official figures from Brazil’s statistical bureau, IBGE.
“The measures we have been taking in order to maintain sustainable growth rates for the Brazilian economy are showing results, and gross fixed capital formation continues to expand in a steady path, which guarantees economic expansion without generating inflation,” explained Guido Mantega, Brazil’s finance minister.