Semi-bleached or bleached kraft or soda wood pulp excluding dissolving grades market in Canada

Earlier Report Observations

Canadian production of semi-bleached or bleached kraft pulp declined from 8.1 million tonnes in 2018 to 6.4 million tonnes in 2023. The domestic market volume fluctuated but remained relatively stable, ranging between 1.8 and 2.1 million tonnes over the same period. Initially, the sector was supported by a weak Canadian dollar which aided exports, while stable demand for tissue, packaging, and textile papers helped offset the ongoing decline in North American print paper consumption. This structural shift was reinforced by China's 2021 ban on recovered paper imports, which increased Chinese demand for virgin unbleached kraft pulp and led several Canadian mills to convert part of their capacity away from bleached grades.

The COVID-19 pandemic in 2020 sharply reduced demand for printing and writing papers, accelerating the production decline. However, sustained demand for hygiene products provided some market stability. In response to evolving preferences, the industry adapted with new investments, such as White Birch Paper's launch of a 120 000 tonne-per-year recycled kraft paper machine in 2021 and Nordic Kraft's continued focus on producing certified, sustainable bleached and specialty pulps for the North American market.

Rising costs for raw materials and energy, coupled with higher mortgage rates slowing the U.S. housing market, impacted pulpwood pricing and mill profitability in 2022. The following year saw a 40% increase in pulpwood deliveries compared to 2022, indicating improved feedstock availability. Concurrently, producers like Nordic Kraft in Quebec strengthened their environmental profile through optimized bleaching processes and a long-term renewable energy contract, aligning with growing demand for FSC®-certified sustainable pulp.

Production bleached kraft or soda pulp in Canada

In kind, 2017-2020, K t

Between 2017 and 2020, Canada ranked as the world's fourth-largest producer of semi-bleached or bleached kraft or soda wood pulp, excluding dissolving grades.

Top producers of bleached kraft or soda pulp, 2017-2020

World map of production of bleached kraft or soda pulp, 2017-2020

In 2020, Canada produced 7 371 K t of semi-bleached or bleached kraft or soda wood pulp, excluding dissolving grades, marking a 9.5% decrease from the previous year. From 2017 to 2020, production fell by 10.3%, with a compound annual growth rate (CAGR) of -3.5%. The highest growth occurred in 2019, with a modest increase of 0.7%.

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

In value, 2017-2020, M $ US

Canada's production of semi-bleached or bleached kraft or soda wood pulp, excluding dissolving grades, declined for the second year in a row. In 2020, the output was valued at 4 103 M $ US, reflecting a sharp drop of 20.6% compared to 2019. Over the 2017-2020 period, production decreased by 19.2%, with a CAGR of -6.9%. The peak value was recorded in 2018 at 6 291 M $ US, which also saw the largest increase of 23.8%.

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

Exports bleached kraft or soda pulp from Canada

Exports in kind, K t

Export volumes of semi-bleached or bleached kraft or soda wood pulp, excluding dissolving grades, from Canada fell for the third consecutive year. In 2020, exports totaled 5 979 K t, down 8.2% from the previous year. Between 2017 and 2020, exports declined by 13.3%, equivalent to an annualized rate of -4.6%.

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

From 2017 to 2020, China and the United States were the leading buyers of semi-bleached or bleached kraft or soda wood pulp, excluding dissolving grades, from Canada, together accounting for 81.7% of total exports in volume. Other partners made up a smaller portion of the market.

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

World map of product's exports from Canada in kind, 2017-2020

Exports in value, M $ US

Export shipments of semi-bleached or bleached kraft or soda wood pulp, excluding dissolving grades, from Canada declined for the second year in a row. In 2020, Canada exported 3 328 M $ US worth of this product, indicating a significant contraction of 19.4% compared to 2019. Between 2017 and 2020, exports decreased by 22%, with an annualized rate of -7.9%. The highest value was recorded in 2018 at 5 166 M $ US, which also saw the largest increase of 21.1%, while the largest decline occurred in 2019 at 20.1%.

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

Over the 2017-2020 period, China and the United States remained the primary buyers of semi-bleached or bleached kraft or soda wood pulp, excluding dissolving grades, from Canada, with a combined share of 80.7% of total exports in value. The remaining exports were distributed among a fragmented group of other countries.

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

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

Imports bleached kraft or soda pulp to Canada

Imports in kind, K t

Import volumes of semi-bleached or bleached kraft or soda wood pulp, excluding dissolving grades, into Canada showed notable fluctuations during the period. In 2020, imports reached 380 K t, up 21.1% from 2019. The lowest point was in 2017, with imports increasing 5.8-fold by 2020. The largest decline occurred in 2019 at 2.2%, while the largest increase was in 2018 at 392.0%.

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

Throughout 2017-2020, Brazil and the United States dominated Canada's imports of semi-bleached or bleached kraft or soda wood pulp, excluding dissolving grades, in volume, together making up 95.0% of total flows. Other markets contributed to a long tail of smaller shares.

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

World map of product's imports to Canada in kind, 2017-2020

Imports in value, M $ US

Imports of semi-bleached or bleached kraft or soda wood pulp, excluding dissolving grades, into Canada declined for the second consecutive year. In 2020, imports were valued at 225 M $ US, showing little change from 2019. Over the 2017-2020 period, imports increased by 13.2%, with a CAGR of 4.2%. The peak value was recorded in 2018 at 239 M $ US, which also saw the largest increase of 20.1%, while the largest decline occurred in 2019 at 5.6%.

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

From 2017 to 2020, the United States and Brazil consistently represented 96.0% of Canada's total imports in value for semi-bleached or bleached kraft or soda wood pulp, excluding dissolving grades, indicating a highly concentrated market with a long tail of smaller suppliers.

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

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