Non coniferous roundwood market in MERCOSUR

Earlier Report Observations

The non-coniferous roundwood market in MERCOSUR began the period with supply growth accelerated by international demand and the bloc's trade integration, supporting production and market volume in 2018. However, falling international prices for forest products and reduced domestic consumption in construction led to a contraction in market volume the following year.

The COVID-19 pandemic disrupted supply and demand in 2020, yet market volume increased as the industry adjusted. Higher production costs maintained wood prices above pre-pandemic levels. Robust demand and continued industry professionalization through better management practices and certification drove further market growth in 2021.

Regulatory developments, including the implementation of phytosanitary and packaging rules for raw wood in 2022, alongside increased vertical integration and mergers, supported market expansion. By 2023, market volume growth stabilized under the influence of rising production costs and steady exports, while the industry navigated international price pressures.

Production non coniferous roundwood in MERCOSUR

In kind, 2017-2020, M m³

Top producers of non coniferous roundwood, 2017-2020

World map of production of non coniferous roundwood, 2017-2020

In 2020, MERCOSUR produced 264.7 million cubic meters of non-coniferous roundwood, marking a 4.1% increase from the previous year. Looking at the 2017-2020 period, production grew by 3.4%, with an average annual growth rate of 1.1%. The lowest production level was recorded in 2019 at 254.4 million cubic meters, while the peak occurred in 2018 with 269.0 million cubic meters. The most significant decline happened in 2019, dropping by 5.4%, whereas the largest increase was observed in 2018, rising by 5.1%.

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

Exports non coniferous roundwood from MERCOSUR

Exports in kind, K m³

Following two consecutive years of decline, MERCOSUR's non-coniferous roundwood exports rebounded in 2020. Export volumes reached 11 450 thousand cubic meters, representing a substantial 13.2% increase compared to the previous year. Over the 2017-2020 period, exports expanded by 11.8%, with an average annual growth rate of 3.8%. The lowest export volume was recorded in 2019 at 10 113 thousand cubic meters, while the most notable decline occurred in 2018, falling by 1.0%.

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

Between 2017 and 2020, Free Zones remained the primary destination for MERCOSUR's non-coniferous roundwood exports, accounting for 84.1% of total export volumes. Other markets played a much smaller role during this period.

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

In 2020, the value of MERCOSUR's non-coniferous roundwood exports stood at 656.5 million US dollars, reflecting a 1.3% decrease year-over-year. The most significant increase occurred in 2019, though it remained essentially flat at 0.0% growth.

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

From 2017 to 2020, Free Zones dominated as the main buyers of MERCOSUR's non-coniferous roundwood, representing 84.1% of total export value. Other countries accounted for the remaining share of 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 non coniferous roundwood to MERCOSUR

Imports in kind, K m³

Import volumes showed considerable volatility during the period. The lowest point was recorded in 2017, while imports peaked in 2019, creating a 4.4-fold difference between these years. In 2020, MERCOSUR's non-coniferous roundwood imports amounted to 17 thousand cubic meters, indicating a sharp 53.8% decrease compared to the previous year. The highest import volume was recorded in 2019 at 36 thousand cubic meters, while the most substantial increase occurred in 2018, surging by 157.6%.

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

During 2017-2020, three key markets—Bolivia, Hong Kong, and Greece—collectively accounted for 71.8% of MERCOSUR's non-coniferous roundwood import volumes.

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

After two years of decline, MERCOSUR's non-coniferous roundwood import value recovered in 2020. Import volumes reached 2.6 million US dollars, showing a significant 33.9% increase compared to 2019. Over the 2017-2020 period, imports grew by 17.7%, with an average annual growth rate of 5.6%. The lowest import value was recorded in 2019 at 2.0 million US dollars, while the most notable decline occurred in 2018, dropping by 8.8%.

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

Throughout 2017-2020, Bolivia (25.5% of import value), Myanmar (1.3%), and China (0.8%) remained the primary sources for MERCOSUR's non-coniferous roundwood imports, together accounting for 27.6% of total import flows by value.

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

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