MDF market in MERCOSUR

Earlier Report Observations

The MDF market in MERCOSUR, measured in volume, expanded from 4.46 million m³ in 2018 to 6.58 million m³ in 2021, marking a period of strong growth. This upward trend was interrupted in 2022 when the market volume contracted to 4.79 million m³, before partially recovering to 5.23 million m³ in 2023.

The market growth in 2020 and 2021 was primarily driven by the COVID-19 pandemic's impact on consumer behavior, which increased demand for home renovations and ready-to-assemble furniture, benefiting MDF as a material. This was coupled with a broader recovery in residential and commercial construction activity across the region, particularly in Brazil, which stimulated both production and consumption.

Following the 2022 contraction, the market began to recover in 2023. By 2024, key factors shaping the market included the implementation of the BIS quality standards for MDF from February 2024, which affected product acceptance and competition, and a growing consumer and industrial emphasis on sustainability, positioning MDF as an eco-friendly alternative to solid wood. Additionally, a buoyant real estate sector in Brazil, supported by easier credit and housing programs, continued to drive demand for furniture and construction panels.

Production MDF in MERCOSUR

In kind, 2017-2020, K m³

Top producers of MDF, 2017-2020

World map of production of MDF, 2017-2020

MERCOSUR's MDF production volume increased for the third consecutive year. In 2020, production reached 6 277 K m³, marking a 14.6% gain compared to 2019. Between 2017 and 2020, production grew by 24.4%, which translates to an annualized rate of 7.5%.

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

In value, 2017-2020, M $ US

MDF production in MERCOSUR increased for the second consecutive year. In 2020, the output was valued at 1 402 M $ US, showing a rise of 14.3% from the previous year. The lowest value was recorded in 2018 at 1 127 M $ US, which also saw the largest decline of 18.2%.

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

Exports MDF from MERCOSUR

Exports in kind, K m³

MERCOSUR's MDF export volume declined for the second consecutive year. In 2020, exports totalled 677.0 K m³, reflecting a moderate year-over-year drop of 4.1%. Between 2017 and 2020, exports decreased by 7.4%, equating to an annualized rate of 2.5%. The peak was in 2018 at 768.3 K m³, with the largest increase of 5.1% that year, while the largest decline occurred in 2019 at 8.1%.

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

From 2017 to 2020, the main buyers of MDF from MERCOSUR in terms of volume were Mexico (26.3% of exports), the United States (15.9% of exports), and Colombia (7.7% of exports), together accounting for 50.0% of total exports.

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

MERCOSUR's MDF export volume declined for the third consecutive year. In 2020, exports amounted to 151.2 M $ US, which is 4.4% lower than in 2019. Over the period 2017-2020, exports decreased by 24.3%, with a compound annual growth rate of 8.9%.

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

From 2017 to 2020, the principal buyers of MDF from MERCOSUR in value terms were Mexico (25.4% of exports), the United States (20.8% of exports), and Colombia (6.8% of exports), jointly making up 53.0% of total exports.

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

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

Imports MDF to MERCOSUR

Imports in kind, K m³

In 2020, foreign MDF supplies to MERCOSUR reached 70.2 K m³, showing a steep uptick of 40.5% compared to the previous year. Between 2017 and 2020, imports increased by 13.1%, equating to an annualized rate of 4.2%. The lowest value was recorded in 2019 at 50.0 K m³, which also saw the largest decline of 20.3%.

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

From 2017 to 2020, the country breakdown of imports in kind was scattered, with Germany (11.5% of imports), China (9.4% of imports), and Austria (5.3% of imports) together accounting for just 26.2% of total flows, and no single partner emerged as clearly dominant.

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

MERCOSUR's MDF import volume declined for the third consecutive year. In 2020, imports were valued at 34.4 M $ US, showing only a marginal fluctuation year-over-year from 2019. Over the period 2017-2020, imports decreased by 24.5%, with a compound annual growth rate of 9.0%.

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

From 2017 to 2020, the partner landscape for imports in value terms was wide, as Germany (15.3% of imports), China (12.6% of imports), and Austria (8.6% of imports) together formed only 36.6% of total flows, with a substantial 63.4% coming from many other countries.

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

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