Non coniferous sawnwood market in MERCOSUR

Earlier Report Observations

From 2018 to 2019, the non-coniferous sawnwood market in MERCOSUR grew to 4.3 million m³, supported by rising demand for housing construction and household investments, trends that were noted in relation to the pandemic's early effects. However, market volume contracted to 4.1 million m³ in 2020 as a sharp drop in imports outweighed a modest increase in domestic production.

The market continued to decline in 2021, falling to 4.0 million m³, a movement explained by strong international demand that led to higher export volumes, reducing the material available for domestic consumption. In the following years, a gradual softening in global lumber transactions contributed to lower export levels, though restrained production and imports kept the overall market size near 3.9 million m³ through 2022.

By 2023, the market recovered to 4.0 million m³. This uptick coincided with noted logistical and port challenges, as well as a shift in export destinations away from the Americas toward Asian markets, which required Brazilian producers to adapt their processes and quality management, factors that influenced export flows and supported domestic availability.

Production non coniferous sawnwood in MERCOSUR

In kind, 2017-2020, K m³

Top producers of non coniferous sawnwood, 2017-2020

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

Following a two-year decline, MERCOSUR's non-coniferous sawnwood production rebounded in 2020. That year, the region produced 4 513 K m³ of non-coniferous sawnwood, marking a 5.5% increase compared to 2019. Over the period from 2017 to 2020, production decreased by 4.4%, which translates to an annualized decline of 1.5%. The lowest production level was recorded in 2019 at 4 278 K m³, with the largest year-on-year drop of 5.0% also occurring that year.

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

In value, 2017-2020, M $ US

After two years of contraction, MERCOSUR's non-coniferous sawnwood production value saw a significant recovery in 2020. The output was valued at 2 079 M $ US, representing a strong 22.8% gain over the previous year. From 2017 to 2020, however, production value decreased by 16.2%, with a compound annual growth rate (CAGR) of -5.7%. The lowest value was recorded in 2019 at 1 693 M $ US, while the steepest decline of 25.3% occurred in 2018.

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

Exports non coniferous sawnwood from MERCOSUR

Exports in kind, K m³

Non-coniferous sawnwood exports from MERCOSUR declined for the second consecutive year in 2020. Exports reached 471.8 K m³, which is 27.5% lower than in 2019. Over the 2017-2020 period, exports decreased by 2.6%, equating to an annualized decline of 0.9%. The peak export volume was recorded in 2018 at 689.0 K m³, with the largest year-on-year increase of 42.2% also occurring that year.

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

Data from 2017 to 2020 show that MERCOSUR's non-coniferous sawnwood exports in kind were not heavily concentrated among a few key destinations. Vietnam accounted for 16.1% of exports, the United States for 12.8%, and China for 12.4%. Together, these three countries represented only 41.3% of total export flows, indicating a relatively diversified market.

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

Non-coniferous sawnwood exports from MERCOSUR in value terms fell for the second year in a row in 2020. The region exported 217.4 M $ US worth of non-coniferous sawnwood, marking a 15.6% decline compared to the previous year. Between 2017 and 2020, export value decreased by 14.6%, with an annualized decline rate of 5.1%. The highest export value was recorded in 2018 at 283.7 M $ US, with the largest year-on-year increase of 11.4% also occurring that year.

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

From 2017 to 2020, the United States was the largest buyer of non-coniferous sawnwood from MERCOSUR in value terms, accounting for 15.3% of exports. China followed with 14.3%, and the Netherlands with 10.3%. However, even combined, these three countries represented just 40.0% of total export value, highlighting a broadly diversified partner base for MERCOSUR.

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 sawnwood to MERCOSUR

Imports in kind, K m³

The import market for non-coniferous sawnwood in MERCOSUR showed significant volatility during the observed period. Import volumes peaked in 2019 and then dropped sharply to their lowest point in 2020, resulting in a 15-fold decrease between these two years. In 2020, imports reached 46.5 K m³, down by 93.4% compared to 2019. The highest import volume was recorded in 2019 at 701.6 K m³, with the largest year-on-year increase of 159.8% occurring in 2018.

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

Between 2017 and 2020, China dominated MERCOSUR's non-coniferous sawnwood imports in kind, accounting for 66.7% of the total. The United States followed with 9.3%, and Bolivia with 3.5%. Together, these three countries represented 79.5% of total import flows, indicating a more concentrated sourcing structure compared to exports.

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

Non-coniferous sawnwood imports into MERCOSUR increased for the second consecutive year in 2020. Imports stood at 41.8 M $ US, representing a 28.4% rise compared to the previous year. Over the 2017-2020 period, import value grew by 10.9%, with a compound annual growth rate (CAGR) of 3.5%. The lowest import value was recorded in 2018 at 32.0 M $ US, with the largest decline of 15.1% also occurring that year.

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

From 2017 to 2020, the United States was the largest contributor to MERCOSUR's non-coniferous sawnwood imports in value terms, accounting for 20.5%. Ecuador followed with 18.9%, and China with 14.1%. Together, these three countries made up 53.5% of total import flows, reflecting a moderately concentrated import structure.

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

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