Newsprint market in MERCOSUR

Earlier Report Observations

The newsprint market in MERCOSUR began the period at a high volume of 314.6 thousand tons in 2018, supported by a strong pulp production base in Brazil, the world leader in short-fiber pulp production. The strategic role of Mato Grosso do Sul as a pulp export hub and the growth of Latin American pulp output strengthened the regional raw material supply for newsprint. By 2020, the COVID-19 pandemic caused a sharp contraction to 154.0 thousand tons, disrupting supply chains and altering consumer behavior.

After the pandemic, the market continued to decline, reaching 119.4 thousand tons in 2023. Rising production costs, including a 21.5% increase in waste paper prices in 2022, pressured newsprint costs and affected consumption. Regulatory interventions to manage supply shortages and cost pressures also shaped market conditions. Production showed signs of recovery from 2021 onward, growing to 138.9 thousand tons in 2023, but imports fell significantly, contributing to the overall market contraction.

Production newsprint in MERCOSUR

In kind, 2017-2020, K t

Top producers of newsprint, 2017-2020

World map of production of newsprint, 2017-2020

Newsprint production in MERCOSUR declined for the second year in a row. In 2020, the region produced 123.0 K t of newsprint, which represents a 22.2% decrease compared to the previous year. Looking at the period from 2017 to 2020, production fell by 37.9%, averaging an annual decline of 14.7%. The highest production level was recorded in 2018 at 202.0 K t, when output increased by 2.0%.

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

In value, 2017-2020, M $ US

Newsprint production in MERCOSUR declined for the second consecutive year. In 2020, the value of newsprint output reached 42.2 M $ US, marking a significant 43.3% drop from the year before. Between 2017 and 2020, production value decreased by 59.5%, which translates to an average annual decline of 26.0%. The peak value was recorded in 2018 at 127.9 M $ US, when production saw its largest increase of 22.7%.

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

Exports newsprint from MERCOSUR

Exports in kind, K t

The market experienced notable fluctuations during this period. Exports reached their lowest point in 2017 and peaked in 2018, with a 2.6-fold difference between these years. In 2020, MERCOSUR exported 24.9 K t of newsprint, showing a strong increase of 21.4% compared to the previous year. The highest export volume was recorded in 2018 at 33.3 K t, which saw the largest increase of 163.7%. Meanwhile, 2019 experienced the largest decline of 38.3%.

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

From 2017 to 2020, MERCOSUR's newsprint exports were distributed across a wide range of partner countries. The top three destinations—India (12.7% of exports), China (10.0%), and Turkey (5.8%)—together accounted for just 28.4% of total export flows.

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, K $ US

The market showed signs of volatility over the observed period. Exports bottomed in 2017 and peaked in 2018, with a 3.2-fold difference between these years. In 2020, newsprint shipments from MERCOSUR reached 8 556 K $ US, down 11.6% year-over-year. The highest value was recorded in 2018 at 21 062 K $ US, which saw the largest increase of 217.1%. The largest decline occurred in 2019, with a drop of 54.1%.

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

During 2017–2020, MERCOSUR's newsprint exports were supplied to many different markets. Even the largest destinations—India, China, and South Africa—together represented only 27.4% of total export value.

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

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

Imports newsprint to MERCOSUR

Imports in kind, K t

Newsprint imports into MERCOSUR declined for the third consecutive year. In 2020, the region imported {value_last_year} K t of newsprint, down 48.0% from the previous year. Over the period from 2017 to 2020, imports decreased by 62.3%, with a compound annual growth rate (CAGR) of -27.8%.

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

From 2017 to 2020, Canada consistently accounted for 71.2% of MERCOSUR's total newsprint imports by volume, indicating high concentration on this market. The remaining share was distributed among other countries.

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, K $ US

Foreign newsprint supplies to MERCOSUR declined for the second consecutive year. In 2020, the region imported {value_last_year} K $ US worth of newsprint, representing a steep 58.4% decline compared to the prior year. Between 2017 and 2020, import value decreased by 66.1%, averaging an annual decline of 30.3%. The peak value was recorded in 2018 at 86 002 K $ US, which saw the largest increase of 10.3%.

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

From 2017 to 2020, Canada dominated MERCOSUR's newsprint imports in value terms, accounting for 70.1% of total flows. Other countries together made up the remaining share.

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

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