Chemical wood pulp market in South America

Earlier Report Observations

From 2018 to 2020, the South American chemical wood pulp market experienced volatility. After starting at 9.8 million tonnes in 2018, consumption fell to 8.4 million tonnes in 2019, partly due to a slowdown in the European Union economy that reduced global pulp and paper demand, affecting Brazilian exporters. The market recovered to 9.3 million tonnes in 2020 despite pandemic-related supply chain disruptions, which forced the sector to build greater resilience.

Market volume then grew to 10 million tonnes in 2021, supported by substantial investments in expanding eucalyptus plantations and production capacity in Brazil. However, in 2022 domestic consumption dropped to 8.9 million tonnes as increased demand from China for wood fiber and from the chemical and textile industries led to higher exports, reducing domestic availability.

By 2023, the market returned to 10 million tonnes, aided by continued investment in process modernization to improve quality and sustainability. Looking ahead, major investments in logistics and capacity expansion through 2024 aim to solidify Brazil's position as a global pulp leader, although the Russia-Ukraine conflict has added pressure on global timber supplies.

Production chemical wood pulp in South America

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 South America, chemical wood pulp production reached 28 782 thousand tons in 2020, marking a controlled increase of 4.6% compared to 2019. Looking at the period from 2017 to 2020, production grew by 5.5%, which translates to an average annual growth rate of 1.8%. The highest production level was recorded in 2018 at 28 907 thousand tons, with the largest annual increase of 6.0% occurring that same year. In contrast, 2019 saw the most significant decline, with production dropping by 4.8%.

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

In value, 2017-2020, M $ US

South America's chemical wood pulp production in value terms declined for the second year in a row. In 2020, the output was valued at 11 416 million US dollars, representing an 18.5% decrease from 2019. Over the four-year span from 2017 to 2020, production value fell by 15.5%, corresponding to a compound annual growth rate of -5.5%. The peak value was achieved in 2018 at 17 346 million US dollars, which also saw the largest annual increase of 28.4%. The most substantial decline occurred in 2019, with a drop of 19.2%.

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

Exports chemical wood pulp from South America

Exports in kind, K t

South America's chemical wood pulp export volume increased for the third consecutive year. In 2020, exports reached 20 368 thousand tons, showing a modest uptick of 2.3% compared to 2019. From 2017 to 2020, export volume grew by 10.1%, with a compound annual growth rate of 3.2%.

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

Between 2017 and 2020, China, the United States, and the Netherlands were the leading destinations for South America's chemical wood pulp exports in volume terms. China accounted for 46.3% of exports, followed by the United States at 11.5%, and the Netherlands at 8.7%. Together, these three countries represented 66.5% of total export flows.

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

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

Exports in value, M $ US

South America's chemical wood pulp exports in value terms declined for the second year in a row. In 2020, exports amounted to 8 079 million US dollars, reflecting a significant drop of 20.3% from the previous year. Over the period from 2017 to 2020, export value decreased by 11.9%, with a compound annual growth rate of -4.1%. The highest value was recorded in 2018 at 11 919 million US dollars, which also experienced the largest annual increase of 30.0%.

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

From 2017 to 2020, China, the United States, and the Netherlands were the top contributors to South America's chemical wood pulp exports in value terms. China held a 46.6% share, the United States accounted for 11.2%, and the Netherlands made up 8.4%. Collectively, these three countries represented 66.2% of total export value.

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

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

Imports chemical wood pulp to South America

Imports in kind, K t

Chemical wood pulp imports into South America increased for the third consecutive year. In 2020, imports totaled approximately 863 thousand tons, showing a significant rise of 10.1% compared to the previous year. Between 2017 and 2020, import volume grew by 16.8%, equating to an average annual growth rate of 5.3%.

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

The structure of chemical wood pulp imports into South America from 2017 to 2020 was diversified, with no single country holding a clearly dominant position. The United States was the largest source, accounting for 27.8% of imports in volume terms, followed by Russia and Free Zones, each with 1.1%. Together, these three sources represented just 30.0% of total import flows.

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

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

Imports in value, M $ US

South America's chemical wood pulp imports in value terms declined for the second consecutive year. In 2020, imports amounted to 520 million US dollars, marking a notable decrease of 15.9% from the prior year. Over the period from 2017 to 2020, import value fell by 5.5%, with a compound annual growth rate of -1.9%. The peak value was recorded in 2018 at 619 million US dollars, which also saw the largest annual increase of 12.5%.

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

From 2017 to 2020, imports of chemical wood pulp into South America in value terms were spread across many countries, resulting in a diversified structure. The United States was the largest contributor with 33.5% of imports, while Russia and Germany each accounted for 1.1%. Together, these three countries represented only 35.6% of total import flows.

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

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