Coniferous wood fuel market in Canada

Earlier Report Observations

Between 2018 and 2020, the Canadian coniferous wood fuel market was shaped by broader forestry sector dynamics. In 2018, the imposition of U.S. anti-dumping and countervailing duties on Canadian softwood lumber, coupled with railway constraints and forest fires, created a challenging environment. Production rose sharply the following year, reaching 805 thousand m³. However, the COVID-19 pandemic in 2020 led to sawmill closures and a temporary halt in economic activity, causing production to fall to 600 thousand m³ and reducing total market volume to 2.98 million m³.

The post-pandemic period saw a recovery in production, which increased to 686 thousand m³ in 2021 amid rising softwood lumber prices. Market volume, however, contracted to 2.58 million m³ as imports fell significantly. Through 2022, the maintenance of U.S. trade duties and price stabilization coincided with steady production but a further drop in imports, pushing the market size down to 2.04 million m³. By 2023, production grew to 734 thousand m³ even as global factors like reduced Asian demand for wood chips and lower European pellet prices emerged. The market volume rebounded to 2.7 million m³, driven by a recovery in import volumes.

Looking ahead to 2024, industry factors point to continued market adjustment. Sawmills have maintained production discipline to match demand, while mild weather has aided logistics. The sector is poised for potential growth, supported by increased use of wood in residential construction, though weak U.S. housing demand due to high mortgage rates presents a headwind.

Production coniferous wood fuel in Canada

In kind, 2017-2020, K m³

Top producers of coniferous wood fuel, 2017-2020

World map of production of coniferous wood fuel, 2017-2020

In 2020, Canada produced 600.4 thousand cubic meters of coniferous wood fuel, marking a sharp decline of 25.4% compared to the previous year. Looking at the period from 2017 to 2020, production decreased by 4.3%, which translates to an annualized rate of 1.4%. The lowest production level was recorded in 2018 at 526.2 thousand cubic meters, while the peak occurred in 2019 with 804.8 thousand cubic meters. The most significant increase was observed in 2019, with a jump of 52.9%.

Annual dynamics of production in Canada in kind, 2017-2020, K m³

Exports coniferous wood fuel from Canada

Exports in kind, K m³

The data shows irregular changes, pointing to a volatile market environment. Exports peaked in 2017 and hit their lowest point in 2018, with a 19-fold fluctuation between these years. In 2020, Canada exported 15 thousand cubic meters of coniferous wood fuel, which is 17.1% less than the prior year. The minimum value was recorded in 2018 at 7 thousand cubic meters. The largest decline occurred in 2018, dropping by 94.7%, while the biggest increase was in 2019, rising by 151.0%.

Annual dynamics of product's exports from Canada in kind, 2017-2020, K m³

From 2017 to 2020, Japan, Turkey, and the United States consistently held the top positions in Canada's export structure for coniferous wood fuel in kind. Japan accounted for 48.0% of exports, Turkey for 26.4%, and the United States for 25.2%, together making up 99.6% of total flows.

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

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

Exports in value, K $ US

In 2020, Canada exported 3 568 thousand US dollars worth of coniferous wood fuel, down by 14.6% year-over-year. Between 2017 and 2020, exports decreased by 41.1%, equating to an annualized rate of 16.2%. The largest decline was recorded in 2018 at 38.8%, while the biggest increase occurred in 2019, rising by 12.7%.

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

During 2017–2020, the United States and Japan were the main markets for Canada's exports in value terms, jointly accounting for 81.6% of total flows, with other partners making up the remainder.

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

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

Imports coniferous wood fuel to Canada

Imports in kind, K m³

The market displayed signs of volatility over the observed period. Imports reached their lowest point in 2017 and peaked in 2019, showing a 2.2-fold gap between these years. In 2020, Canada imported approximately 2 391 thousand cubic meters of coniferous wood fuel, representing a 4.9% reduction from 2019. The maximum value was recorded in 2019 at 2 515 thousand cubic meters. The largest increase was in 2018, surging by 105.3%.

Annual dynamics of product's imports to Canada in kind, 2017-2020, K m³

Throughout 2017–2020, imports in kind were heavily concentrated on the United States, which accounted for 100.0% of total flows.

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

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

Imports in value, K $ US

Canada's coniferous wood fuel import volume declined for the second consecutive year. In 2020, Canada imported a total of 81 373 thousand US dollars of coniferous wood fuel, representing a 4.1% reduction relative to the prior year. Between 2017 and 2020, imports increased by 38.7%, equating to an annualized rate of 11.5%. The maximum value was recorded in 2018 at 85 606 thousand US dollars. The largest increase occurred in 2018, rising by 45.9%.

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

Over 2017–2020, the structure of imports in value terms was dominated by a single market: the United States, with a share of 99.9% of total flows.

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

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