Fuel wood in chips and particles market in Brazil

Earlier Report Observations

From 2018 to 2021, the market volume for fuel wood chips in Brazil remained relatively stable, fluctuating between 5.9 million tons and 6.2 million tons. A regional increase in prices for wood used in chip production in São Paulo state during 2018 contributed to higher market value in 2019. The introduction of new regulatory definitions for solid wood fuels, such as SEMA-PR Resolution No. 016/14 in 2020, temporarily affected market activity, coinciding with a slight contraction in volume.

The market shifted sharply upward in 2022, with volume jumping by 23% to 7.3 million tons. This surge was primarily driven by a significant rise in liquefied petroleum gas (LPG) prices, which prompted many residential and industrial consumers to switch to wood for energy needs. Concurrently, ongoing policies for sustainable forest management in the Caatinga region and adjustments to state-level environmental regulations shaped the supply-side context during this period.

In 2023, market volume stabilized at 7.4 million tons, indicating a plateau following the previous year's expansion. The market value, however, continued to grow, reflecting sustained demand and underlying cost pressures.

Production fuel wood in chips and particles in Brazil

In kind, 2018-2021, K t

From 2018 to 2021, Brazil consistently ranked 8th globally in the production of fuel wood in chips and particles.

Top producers of fuel wood in chips and particles, 2018-2021

World map of production of fuel wood in chips and particles, 2018-2021

In 2021, Brazil produced 7 662 K t of fuel wood in chips and particles, showing only a slight fluctuation compared to the previous year. The largest decline occurred in 2019, at 0.0%, while the largest increase was also recorded in 2019, at 0.0%.

Annual dynamics of production in Brazil in kind, 2018-2021, K t

In value, 2018-2021, M $ US

Fuel wood in chips and particles production in Brazil declined for the second consecutive year. In 2021, the output was valued at 651.9 M $ US, remaining stable compared to 2020. Over the period from 2018 to 2021, production decreased by 4.3%, with a compound annual growth rate of 1.4%. The maximum value was recorded in 2019 at 776.0 M $ US. The largest decline occurred in 2020, at 15.7%, while the largest increase was in 2019, at 14.0%.

Annual dynamics of production in Brazil in value, 2018-2021, M $ US

Exports fuel wood in chips and particles from Brazil

Exports in kind, K t

Fuel wood in chips and particles exports from Brazil increased for the second consecutive year. In 2021, exports reached 1 737 K t, marking a modest increase of 6.0% compared to 2020. From 2018 to 2021, exports grew by 7%, with a compound annual growth rate of 2.3%. The minimum value was recorded in 2019 at 1 488 K t. The largest decline occurred in 2019, at 8.4%, while the largest increase was in 2020, at 10.2%.

Annual dynamics of product's exports from Brazil in kind, 2018-2021, K t

Between 2018 and 2021, China, Japan, and Portugal were the principal buyers of fuel wood in chips and particles from Brazil. China accounted for 43.9% of exports in kind, Japan for 35.6%, and Portugal for 11.3%, together making up 90.8% of total exports in kind.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Brazil in kind, 2018-2021

Exports in value, M $ US

In 2021, Brazil exported 147.8 M $ US of fuel wood in chips and particles, reflecting a gradual increase of 5.6% compared to 2020. From 2018 to 2021, exports rose by 2.4%, equating to an annualized rate of 0.8%. The minimum value was recorded in 2020 at 140.0 M $ US, while the maximum was in 2019 at 150.7 M $ US. The largest decline occurred in 2020, at 7.1%.

Annual dynamics of product's exports from Brazil in value, 2018-2021, M $ US

From 2018 to 2021, Japan, China, and Portugal were the largest buyers of fuel wood in chips and particles from Brazil in value terms. Japan accounted for 40.0% of exports, China for 40.0%, and Portugal for 13.6%, together forming 93.6% of total exports in value.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Brazil in value, 2018-2021

Imports fuel wood in chips and particles to Brazil

Imports in kind, K t

Fuel wood in chips and particles imports into Brazil increased for the third consecutive year. In 2021, Brazil imported 1 K t, up by 41.8% year-over-year. Between 2018 and 2021, imports grew by 102.2%, equating to an annualized rate of 26.5%.

Annual dynamics of product's imports to Brazil in kind, 2018-2021, K t

From 2018 to 2021, the United States and Germany played the leading roles in imports in kind, with a combined share of 94.9% of total flows, while the remaining share was distributed among other countries.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Brazil in kind, 2018-2021

Imports in value, M $ US

The market showed volatility during these years. Imports reached their lowest point in 2018 and peaked in 2021, with a 2.2-fold difference between these years. In 2021, imported fuel wood in chips and particles amounted to 2.1 M $ US, marking a rise of 76.3% year-over-year. The largest decline was recorded in 2020, at 9.8%.

Annual dynamics of product's imports to Brazil in value, 2018-2021, M $ US

Between 2018 and 2021, the United States remained the key source for fuel wood in chips and particles to Brazil, accounting for 78.2% of total imports in value terms, while other destinations were much less significant.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Brazil in value, 2018-2021