Arauco reported a clear improvement in its Wood Products business in the second quarter of 2026, but the Chilean group also pointed to a less favourable development in Latin America: growing competition from European particleboard imports.<\/p>\n
Wood Products revenue reached US$817.5 million in Q2, an increase of 15.4% from the first quarter and 4.5% from the same period last year. Demand for particleboard remained strong in Latin America, while MDF benefited from better prices and higher sales volumes.<\/p>\n
The import situation was less supportive. Arauco said larger volumes of European particleboard continued to put pressure on the regional market, adding competition at a time when Latin American consumption itself remains relatively healthy.<\/p>\n
The comment is particularly relevant for European panel producers. Weak construction and furniture markets have left Europe with considerable production capacity competing for fewer domestic orders, increasing the attraction of export markets where demand has held up better.<\/p>\n
Wood Products revenue above US$1.5 billion in H1<\/strong><\/p>\n Arauco's Wood Products division generated US$1.526 billion in external revenue during the first six months of 2026, almost evenly matching the group's pulp business in terms of sales.<\/p>\n Most Wood Products revenue was generated outside Chile. Foreign operations accounted for just over US$1.03 billion, compared with around US$495 million from Chilean companies. The segment produced a first-half profit of US$97.6 million.<\/p>\n European supply enters a strong particleboard market<\/strong><\/p>\n Arauco's description of Latin America is unusual because the problem is not weak particleboard demand.<\/p>\n Consumption remained strong during the quarter. Pressure instead came from the supply side, as more European board reached the market.<\/p>\n That distinction makes the development more relevant to European producers. Latin America is not simply receiving excess material because its own market is deteriorating; European imports are entering a region where local particleboard consumption remains comparatively firm.<\/p>\n For domestic manufacturers, additional imports increase competition for volumes and potentially limit the ability to push through higher prices.<\/p>\n MDF developed more favourably. Arauco reported improvement in both prices and volumes in Latin America during Q2.<\/p>\n North America was steadier. MDF demand remained stable as supply increased, while particleboard demand stayed solid and broadly in line with available supply.<\/p>\n Arauco has almost 4 million m\u00b3 of particleboard capacity<\/strong><\/p>\n The scale of Arauco's panel operations makes its assessment more significant than that of a regional producer.<\/p>\n Across its wholly controlled operations, Arauco has 20 panel and related industrial plants in Chile, Argentina, Brazil, Mexico, the United States and Canada, with combined panel capacity of approximately 6.9 million m\u00b3\/year.<\/p>\n Including its 50% share of Sonae Arauco, the group's attributable production capacity reaches approximately 4.1 million m\u00b3\/year of MDF and 3.9 million m\u00b3\/year of particleboard. It also has around 700,000 m\u00b3 of plywood capacity and an attributable 230,000 m\u00b3 of OSB capacity.<\/p>\n *Including Arauco's proportional 50% interest in Sonae Arauco.<\/em><\/p>\n Arauco also operates six sawmills \u2013 five in Chile and one in Argentina \u2013 with combined annual sawn timber capacity of around 2.4 million m\u00b3.<\/p>\n The group is therefore exposed to panel markets on both sides of the Atlantic. Through Sonae Arauco it has production in Europe, while its much larger wholly controlled panel network serves North and Latin America.<\/p>\n Wood Products investment continues<\/strong><\/p>\n Arauco continued to put capital into the division during the first half of the year despite mixed panel-market conditions.<\/p>\n Investment in property, plant and equipment, biological assets and intangible assets attributed to Wood Products reached US$122.7 million during January-June 2026.<\/p>\n At group level, Arauco generated US$3.081 billion of revenue during the first half, little changed from US$3.056 billion a year earlier. Second-quarter revenue increased to US$1.599 billion from US$1.525 billion in Q2 2025. Net profit for the quarter rose to US$121.2 million from US$16.4 million a year earlier.<\/p>\n For the European panel industry, however, the more interesting part of Arauco's quarterly assessment is not the earnings improvement. It is the appearance of additional European particleboard in Latin America.<\/p>\n Demand there remains comparatively healthy, which gives European mills another potential outlet while their home markets remain difficult. For Latin American producers, however, the same trade flow means more competition in a market that had otherwise been providing relatively favourable conditions.<\/p>","protected":false},"excerpt":{"rendered":" Arauco reported a clear improvement in its Wood Products business in the second quarter of 2026, but the Chilean group also pointed to a less favourable development in Latin America: growing competition from European particleboard imports. Wood Products revenue reached … Continue reading \n\n
\n Arauco Wood Products<\/th>\n Q2 2026 \/ H1 2026<\/th>\n<\/tr>\n \n Q2 revenue<\/strong><\/td>\n US$817.5m<\/strong><\/td>\n<\/tr>\n \n Q\/Q change<\/td>\n +15.4%<\/td>\n<\/tr>\n \n Y\/Y change<\/td>\n +4.5%<\/td>\n<\/tr>\n \n H1 external revenue<\/td>\n US$1.526bn<\/td>\n<\/tr>\n \n H1 segment profit<\/td>\n US$97.6m<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \n\n
\n Product<\/th>\n Annual capacity*<\/th>\n<\/tr>\n \n MDF<\/strong><\/td>\n 4.1 million m\u00b3<\/strong><\/td>\n<\/tr>\n \n Particleboard<\/strong><\/td>\n 3.9 million m\u00b3<\/strong><\/td>\n<\/tr>\n \n Plywood<\/td>\n 700,000 m\u00b3<\/td>\n<\/tr>\n \n OSB<\/td>\n 230,000 m\u00b3<\/td>\n<\/tr>\n \n Sawn timber<\/td>\n 2.4 million m\u00b3<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n