Roundwood coniferous market in MERCOSUR

Earlier Report Observations

The coniferous roundwood market in MERCOSUR expanded from 31.9 million m³ in 2018 to 56.9 million m³ in 2020. This surge was fueled by an oversupply from forest plantations in regions like Santa Catarina, where low demand for roundwood created a supply-demand imbalance. Simultaneously, land-use changes as producers shifted from forestry to agriculture in the South affected timber availability, while exports dropped sharply, redirecting more production to domestic consumption.

Growth slowed to 61.3 million m³ in 2021, a 7.6% increase, supported by the cyclical harvesting patterns of forests, especially eucalyptus for pulp with partial substitution by pine. In 2022, the market reached 62.6 million m³, up only 2.1%, as increased production from reforested areas and rising demand for wood used in pulp and firewood influenced supply and prices. However, in 2023, the market contracted by 5.3% to 59.3 million m³, impacted by geopolitical conflicts in the Middle East and political-economic instability that disrupted export contracts and broader economic activity, leading to lower production.

Throughout the period, the market remained dominated by timber from planted forests, with strong influence from state and private forest management companies. The value of primary forest production rose consistently, highlighting a shift toward higher-value segments like pulpwood and firewood.

Production coniferous roundwood in MERCOSUR

In kind, 2017-2020, K m³

Top producers of coniferous roundwood, 2017-2020

World map of production of coniferous roundwood, 2017-2020

After declining for two consecutive years, roundwood coniferous production in MERCOSUR rebounded in 2020. That year, production reached 59 035 K m³, marking a 6.4% year-on-year increase. However, looking at the broader period from 2017 to 2020, overall production decreased by 2.8%, which translates to an average annual decline of 1.0%. The lowest production level was recorded in 2019 at 55 491 K m³, when the largest decline of 5.2% occurred.

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

Exports coniferous roundwood from MERCOSUR

Exports in kind, K m³

The market displayed significant volatility during the observed period. Import levels fluctuated dramatically, with a 12.7-fold difference between the peak in 2018 and the trough in 2020. In 2020, cross-border shipments of roundwood coniferous from MERCOSUR amounted to 2 101 K m³, representing a sharp contraction of 85.1% compared to the previous year. The highest value was recorded in 2018 at 26 681 K m³, when the largest increase of 91.9% was observed.

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

From 2017 to 2020, China remained the overwhelmingly dominant buyer of roundwood coniferous from MERCOSUR, accounting for 98.0% of total exports in volume terms.

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

The data reveals irregular changes, indicating a volatile market environment. Export volumes peaked in 2018 and bottomed out in 2017, with a 1.9-fold difference between these years. In 2020, MERCOSUR's roundwood coniferous exports totaled 141.0 M $ US, showing a rise of 47.0% compared to the previous year. The maximum value was recorded in 2018 at 153.9 M $ US. The largest decline occurred in 2019 at 37.7%, while the largest increase was in 2018 at 91.9%.

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

Throughout the period from 2017 to 2020, two key markets—China and India—dominated exports in value terms, together accounting for 99.7% of total flows.

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

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

Imports coniferous roundwood to MERCOSUR

Imports in kind, K m³

The market showed signs of volatility over the observed period. Import levels reached their peak in 2019 and their lowest point in 2017, with a 27-fold fluctuation between these years. In 2020, roundwood coniferous imports into MERCOSUR totaled 0.0 K m³, which is 12.2% less than in 2019. The maximum value was recorded in 2019 at 0.1 K m³, when the largest increase of 560.6% occurred.

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

Over the period from 2017 to 2020, France remained the key destination for imports in volume terms, accounting for 34.1% of total flows.

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

The market exhibited an unstable trend throughout the timeframe. Import volumes varied 6.9 times, from the high in 2017 to the low in 2018. In 2020, the volume of roundwood coniferous imports into MERCOSUR stood at 0.0 M $ US, up by 55.5% compared to the previous year. The minimum value was recorded in 2018 at 0.0 M $ US, when the largest decline of 85.6% occurred. The largest increase was recorded in 2019 at 172.7%.

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

Over the period from 2017 to 2020, the country structure of imports in value terms was clearly led by France, whose share reached 11.4% of total flows.

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

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