Chemical wood pulp market in MERCOSUR

Earlier Report Observations

From 2018 to 2023, the chemical wood pulp market in MERCOSUR experienced variable consumption volumes, starting at 8.9 million tons in 2018. A notable surge to 9.3 million tons occurred in 2021, primarily driven by the emergence of a new market segment for special cellulose fibers like lyocell in Brazil. Significant investments by local companies in joint ventures for soluble pulp production stimulated additional domestic demand.

After a contraction to 8.2 million tons in 2022, the market volume recovered to 8.9 million tons in 2023. This growth was supported by the expansion of regional production capacity, particularly in Brazil, and a rising consumer preference for sustainable pulp-based products, including eco-friendly packaging and tissue paper, reflecting broader environmental trends in the region.

Production chemical wood pulp in MERCOSUR

In kind, 2017-2020, K t

Top producers of chemical wood pulp, 2017-2020

World map of production of chemical wood pulp, 2017-2020

In 2020, MERCOSUR produced 23,720 thousand metric tons of chemical wood pulp, marking a 6.3% increase compared to the previous year. Looking at the period from 2017 to 2020, production grew by 7.1%, which translates to an average annual growth rate of 2.3%. The most significant drop occurred in 2019, with a decline of 5.6%, while the largest rise was recorded in 2018 at 6.8%.

Annual dynamics of production in MERCOSUR in kind, 2017-2020, K t

In value, 2017-2020, M $ US

MERCOSUR's chemical wood pulp production experienced a decline for the second year in a row. In 2020, the output was valued at 8,829 million US dollars, reflecting a substantial decrease of 19.1% from the previous year. Over the 2017-2020 period, production fell by 13.7%, with a compound annual growth rate of -4.8%. The peak value was reached in 2018 at 12,889 million US dollars, which also saw the largest increase of 26.1%.

Annual dynamics of production in MERCOSUR in value, 2017-2020, M $ US

Exports chemical wood pulp from MERCOSUR

Exports in kind, K t

MERCOSUR's chemical wood pulp export volume grew for the third consecutive year. In 2020, exports totaled 16,076 thousand metric tons, representing a 5.2% increase compared to 2019. From 2017 to 2020, exports rose by 14.6%, with an average annual growth rate of 4.7%.

Annual dynamics of product's exports from MERCOSUR in kind, 2017-2020, K t

Between 2017 and 2020, the main destinations for MERCOSUR's chemical wood pulp exports by volume were China, accounting for 44.0% of exports, the United States at 14.3%, and the Netherlands at 9.4%. Together, these three markets made up 67.6% of total export volume.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from MERCOSUR in kind, 2017-2020

Exports in value, M $ US

Chemical wood pulp exports from MERCOSUR declined for the second year in a row. In 2020, exports were valued at 5,984 million US dollars, showing a significant drop of 19.9% year-over-year. From 2017 to 2020, exports decreased by 7.6%, equivalent to an average annual decline of 2.6%. The highest value was recorded in 2018 at 8,272 million US dollars, which also experienced the largest increase of 27.8%.

Annual dynamics of product's exports from MERCOSUR in value, 2017-2020, M $ US

From 2017 to 2020, China, the United States, and the Netherlands were the leading markets for MERCOSUR's chemical wood pulp exports by value. China represented 43.3% of export value, the United States 14.7%, and the Netherlands 9.2%. Combined, these three countries accounted for 67.3% of total export value.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from MERCOSUR in value, 2017-2020

Imports chemical wood pulp to MERCOSUR

Imports in kind, K t

MERCOSUR's chemical wood pulp imports increased for the second consecutive year. In 2020, imports reached 471 thousand metric tons, indicating a strong growth of 16.6% compared to the previous year. Over the 2017-2020 period, imports rose by 4.1%, with an average annual growth rate of 1.3%. The lowest volume was recorded in 2018 at 398 thousand metric tons, which also saw the largest decline of 12.1%.

Annual dynamics of product's imports to MERCOSUR in kind, 2017-2020, K t

During 2017-2020, the sources for MERCOSUR's chemical wood pulp imports by volume were quite diverse. The United States contributed 16.9% of import volume, Chile 4.0%, and Free Zones 2.0%. Together, these three sources represented only 23.0% of total import volume, indicating a broad partner portfolio.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to MERCOSUR in kind, 2017-2020

Imports in value, M $ US

After two years of growth, MERCOSUR's chemical wood pulp import value declined. In 2020, imports were valued at 283 million US dollars, showing a substantial decrease of 18.1% compared to 2019. From 2017 to 2020, imports fell by 9.4%, equating to an average annual decline of 3.2%. The peak value was recorded in 2019 at 345 million US dollars, while the largest increase occurred in 2018 at 6.0%.

Annual dynamics of product's imports to MERCOSUR in value, 2017-2020, M $ US

Between 2017 and 2020, the country structure for MERCOSUR's chemical wood pulp imports by value was highly diversified. The United States accounted for 25.0% of import value, Chile for 4.3%, and Russia for 1.8%. Together, these three countries made up only 31.1% of total import value, with the remaining 68.9% coming from a wide range of smaller markets.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to MERCOSUR in value, 2017-2020