MDF market in Chile

Earlier Report Observations

The Chilean MDF market volume contracted from 439 thousand m³ in 2018 to 388 thousand m³ in 2020. This decline was influenced by forest fires in the Maule region that reduced wood raw material availability and increased production costs, coupled with the U.S.-China trade war which created uncertainty in global wood product demand and pricing. Additionally, ownership changes and production modifications at Chile Panel S.A. led to a shift from MDF to OSB panel output, altering the domestic supply structure. High export volumes during these years further limited domestic availability.

Market volume rebounded sharply to 550 thousand m³ in 2021, driven by a surge in imports to 179 thousand m³ as rising natural gas and electricity prices raised manufacturing expenses and domestic timber production fell. The trend reversed in 2022 after the enactment of the Framework Law on Climate Change, which imposed new environmental regulations and sectoral adaptation plans, increasing compliance costs. By 2023, volume plummeted to 216 thousand m³, pressured by a downturn in Chile’s real estate market—where falling home prices reduced construction demand—and the ongoing implementation of climate policies.

Production MDF in Chile

In kind, 2018-2021, K m³

Between 2018 and 2021, Chile ranked as the 17th largest producer of MDF globally.

Top producers of MDF, 2018-2021

World map of production of MDF, 2018-2021

In 2021, Chile produced 1 008 K m³ of MDF, marking a robust 10.8% increase from the previous year. Over the 2018-2021 period, production grew by 9.3%, which translates to an annualized rate of 3.0%. The lowest production level was recorded in 2020 at 910 K m³, with the largest decline of 2.9% also occurring that year.

Annual dynamics of production in Chile in kind, 2018-2021, K m³

In value, 2018-2021, M $ US

Following a two-year decline, Chile's MDF production rebounded. In 2021, the output was valued at 578.0 M $ US, showing a sharp 34.6% improvement compared to 2020. From 2018 to 2021, production increased by 24.1%, equivalent to an annualized growth rate of 7.5%. The minimum value was 429.5 M $ US in 2020, while the largest decline of 4.7% took place in 2019.

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

Exports MDF from Chile

Exports in kind, K m³

In 2021, Chile exported 636.1 K m³ of MDF, representing a gradual 7.7% rise from 2020. Over the 2018-2021 period, exports increased by 13.2%, with a compound annual growth rate (CAGR) of 4.2%. The largest decline of 1.7% was recorded in 2020.

Annual dynamics of product's exports from Chile in kind, 2018-2021, K m³

From 2018 to 2021, the United States (65.9% of exports in kind), Mexico (10.4%), and Peru (5.2%) consistently led Chile's export structure in volume terms. Together, these three countries accounted for 81.5% of total export flows.

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

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

Exports in value, M $ US

In 2021, Chile's cross-border shipments of MDF reached 364.8 M $ US, up 30.9% from the previous year. Between 2018 and 2021, exports grew by 28.5%, equating to an annualized rate of 8.7%. The lowest value was 278.7 M $ US in 2020, which also saw the largest decline of 2.0%.

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

During 2018-2021, the United States accounted for 75.3% of Chile's total MDF exports in value terms, with the remaining flows distributed among various smaller trading partners.

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

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

Imports MDF to Chile

Imports in kind, K m³

Import volumes showed significant volatility during this period. The minimum was recorded in 2020 at 68.9 K m³, while the peak occurred in 2021 at 178.5 K m³, representing a 2.6-fold increase. In 2021, foreign MDF supplies to Chile amounted to 178.5 K m³, showing an abrupt 159.2% year-over-year uptick. The largest decline of 16.8% also took place in 2020.

Annual dynamics of product's imports to Chile in kind, 2018-2021, K m³

From 2018 to 2021, China (29.8% of imports in kind), Germany (20.3%), and Austria (19.7%) were the main sources for Chile's MDF imports by volume. Together, these three markets accounted for 69.8% of total import flows.

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

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

Imports in value, M $ US

Import values exhibited irregular changes, reflecting a volatile market environment. The low point was in 2020 at 32.4 M $ US, while the high was in 2021 at 101.1 M $ US, representing a 3.1-fold variation. In 2021, cross-border shipments of MDF to Chile amounted to 101.1 M $ US, which is 212.1% higher than the previous year. The largest decline of 15.1% also occurred in 2020.

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

Over the 2018-2021 period, China (29.9% of imports in value terms), Austria (28.2%), and Germany (22.2%) headed the ranking of MDF suppliers to Chile. Their combined share reached 80.4% of total imports by value.

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

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