The Chile-based group said its wood products division Q3 EBITDA were US$62m (Q2 2019: US$85m). Wood panel prices fell by 3.8% in Q3 while volumes were up by 11%. Year-on-year prices were down 1.1% and volumes up by 12.7%.

Q3 Wood products sales revenues were US$5m or 0.7% higher than the previous quarter due to higher panels and plywood sales volumes.

Arauco said the Latin American market in Q3 remained stable, except in Brazil and Argentina. Brazil had not shown any significant improvement mainly due to a weak economy and oversupply, particularly in MDF. In contrast the Argentina market showed signs of improvement.

In North America sales increased mainly due to higher sales from the Grayling mill.

Plywood sales volumes increased 15.1%, with US demand remaining positive. The oversupply from Brazil, Chile and China and a generalised low global demand led to some price decreases.

Q3 panel production volumes were 1.56 million m3, sawn timber was 604,000m3 and plywood 154,000m3.

The solid wood business also saw a reverse in prices and sales volumes.

Arauco’s group-wide adjusted EBITDA fell by 30% quarter on quarter to US$238m due to decreases in average prices in the wood and pulp divisions, offset partially by higher sales volumes. Group sales in Q3 were US$1.38bn.

Wood products represented 53% of total turnover, while pulp was 44% and forestry 3% of turnover.

Arauco predicted it would end 2019 with balanced supply and demand.