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

Earlier Report Observations

The expansion of China's market for semi-bleached or bleached kraft pulp, from 26.9 million tonnes in 2018 to 44.8 million tonnes in 2023, was primarily driven by a sharp increase in domestic production, which grew from 7.7 million tonnes to 19.3 million tonnes over the same period. This production surge was fueled by vertical integration strategies adopted by major paper companies, who invested in their own pulp capacity to reduce reliance on imported pulp and improve profitability.

Import volumes, which remained a key supply source, were affected by external disruptions. The COVID-19 pandemic in 2020 boosted demand for tissue and hygiene paper products, supporting pulp consumption. In subsequent years, supply chain issues including transport delays and strikes, followed by geopolitical tensions that disrupted Russian softwood pulp supplies, led to a decline in softwood pulp imports in 2021 and 2022. However, robust growth in domestic output compensated for this, ensuring overall market expansion.

The market structure continued to evolve with the commissioning of new global hardwood pulp capacity, such as projects in Brazil and Chile, increasing the availability of this grade. Competition intensified, and the industry moved towards greater consolidation and technological upgrading, including the initial adoption of artificial intelligence in production processes by 2024.

Production bleached kraft or soda pulp in China

In kind, 2017-2020, K t

From 2017 to 2020, China ranked as the world's third-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

China's production of semi-bleached or bleached kraft or soda wood pulp, excluding dissolving grades, grew for the third consecutive year. In 2020, output reached 11 137 K t, representing a 25.4% increase compared to 2019. Over the 2017-2020 period, production rose by 66.2%, with an average annual growth rate of 18.4%.

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

In value, 2017-2020, M $ US

In 2020, the value of China's semi-bleached or bleached kraft or soda wood pulp production, excluding dissolving grades, stood at 7 347 M $ US, up 15.4% from 2019. Between 2017 and 2020, production value increased by 62.6%, translating to an annualized growth rate of 17.6%. The largest annual increase occurred in 2018 at 42.9%, while the only decline was a modest 1.4% in 2019.

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

Exports bleached kraft or soda pulp from China

Exports in kind, K t

Export volumes showed significant fluctuations during this period. In 2018, exports hit a low of 17 K t, then surged to a peak of 36 K t in 2019—a 108.7% increase—before declining to 32 K t in 2020, down 8.7% from the previous year. The difference between the 2019 peak and 2018 low was 2.1 times. The sharpest drop occurred in 2018 with a 29.2% decrease.

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

From 2017 to 2020, China's exports of semi-bleached or bleached kraft or soda wood pulp, excluding dissolving grades, were widely distributed across many markets. The top three destinations—Iran (19.5%), the United Arab Emirates (8.1%), and India (7.5%)—collectively accounted for just 35.0% of total export volume, with numerous smaller markets making up the remaining 65.0%.

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

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

Exports in value, M $ US

Export values were volatile over the observed years. In 2018, they reached a minimum of 14 M $ US, then jumped to a maximum of 25 M $ US in 2019—a 77.9% rise—before falling to 21 M $ US in 2020, a 16.0% decline from 2019. The peak in 2019 was 1.8 times higher than the 2018 low.

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

Between 2017 and 2020, China's exports of semi-bleached or bleached kraft or soda wood pulp, excluding dissolving grades, in value terms were not heavily concentrated. The leading markets—Iran (19.7%), the United Arab Emirates (6.9%), and India (6.8%)—together represented only 33.4% of total export value.

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

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

Imports bleached kraft or soda pulp to China

Imports in kind, K t

China's imports of semi-bleached or bleached kraft or soda wood pulp, excluding dissolving grades, increased for the third year in a row. In 2020, imports totaled 22 612 K t, up 9.3% from 2019. Over the 2017-2020 period, import volume grew by 21.6%, with an average annual increase of 6.7%.

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

From 2017 to 2020, Brazil (30.2%), Indonesia (14.3%), and Canada (13.8%) were the top sources for China's imports of semi-bleached or bleached kraft or soda wood pulp, excluding dissolving grades, in volume terms, collectively accounting for 58.3% of total imports.

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

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

Imports in value, M $ US

China's import value of semi-bleached or bleached kraft or soda wood pulp, excluding dissolving grades, declined for the second consecutive year. In 2020, imports amounted to 15 087 M $ US, down 10.2% from 2019. The highest value was recorded in 2018 at 15 087 M $ US, following a 32.5% increase that year. The largest drop occurred in 2019 with a 15.5% decrease.

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

During 2017-2020, the main sources for China's imports of semi-bleached or bleached kraft or soda wood pulp, excluding dissolving grades, in value terms were Brazil (28.2%), Canada (15.1%), and Indonesia (13.2%), which together made up 56.5% of total import value.

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

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