The wood pulp and paper sector contributes significantly for the Brazilian economy. The knowledge of the wood pulp market structure is important for production planning, commercialization and forecast for the sector. The main objective of the present study it to specify and estimate the domestic supply and demand of wood pulp, as well as the export supply and demand functions, in the period from 1969 to 2005. The results provided by' the two-stage least squares method (TSLS) indicated that domestic and export supply and demand of wood pulp are price inelastic. The domestic demand is inelastic in relation to income while the export demand is elastic in relation to income. The domestic supply is more affected by changes in machinery and equipment prices. The export supply is affected by changes in production and domestic demand while the export demand is affected by changes in the income of the importing countries.
Wood pulp; forest product; supply
