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

Earlier Report Observations

The market volume for semi-bleached or bleached kraft pulp in MERCOSUR showed considerable variation between 2018 and 2023. In physical terms, domestic consumption stood at 7.3 million tonnes in 2018, fell sharply to 5.8 million tonnes the following year, and then recovered to 7.5 million tonnes by 2021. After a decline to 6.5 million tonnes in 2022, it rose again to 7.8 million tonnes in 2023. In value terms, the market mirrored this volatility, dropping from $4.0 billion in 2018 to a low of $2.4 billion in 2020 before climbing back to $3.2 billion by the end of the period.

Regional production expanded consistently from 21.5 million tonnes to 25.4 million tonnes over the six years, while exports grew from 14.6 million tonnes to 18.1 million tonnes. Imports fluctuated within a narrow band, indicating that changes in market size were driven primarily by domestic production and export dynamics rather than trade flows.

In the broader market environment, several global trends influenced the pulp industry. Rising demand for sustainable packaging and hygiene products, particularly after the pandemic, supported long-term consumption growth. At the same time, supply chain disruptions and higher wood costs put pressure on production economics, while the closure of several pulp mills worldwide tightened available capacity, benefiting major producing regions like MERCOSUR.

Production bleached kraft or soda pulp in MERCOSUR

In kind, 2017-2020, K t

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

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

In 2020, MERCOSUR produced 21 511 thousand tons of semi-bleached or bleached kraft or soda wood pulp, excluding dissolving grades. This represented a 7.1% increase compared to the previous year. Looking at the period from 2017 to 2020, production grew by 7.5%, which translates to an average annual growth rate of 2.4%. The most significant decline occurred in 2019, when production fell by 6.6%. Conversely, the largest increase was recorded in 2018, with a 7.5% rise.

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

In value, 2017-2020, M $ US

The value of semi-bleached or bleached kraft or soda wood pulp production in MERCOSUR, excluding dissolving grades, declined for the second year in a row. In 2020, output was valued at 7 839 million US dollars, marking a 19.5% decrease from the previous year. Over the four-year span from 2017 to 2020, production value dropped by 13.4%, averaging an annual decline of 4.7%. The peak value was reached in 2018 at 11 618 million US dollars, which also saw the largest increase of 28.4%.

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

Exports bleached kraft or soda pulp from MERCOSUR

Exports in kind, K t

Exports of semi-bleached or bleached kraft or soda wood pulp from MERCOSUR, excluding dissolving grades, grew for the third consecutive year. In 2020, shipments totaled 15 611 thousand tons, up 6.1% from the previous year. From 2017 to 2020, exports increased by 16.7%, with a compound annual growth rate of 5.3%.

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

Between 2017 and 2020, China, the United States, and the Netherlands remained the top buyers of semi-bleached or bleached kraft or soda wood pulp from MERCOSUR, excluding dissolving grades. China accounted for 42.4% of exports in volume, the United States for 14.7%, and the Netherlands for 9.7%. Together, these three countries represented 66.8% of total export volume.

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 value of semi-bleached or bleached kraft or soda wood pulp exports from MERCOSUR, excluding dissolving grades, fell for the second year in a row. In 2020, exports were valued at 5 689 million US dollars, a significant 20.3% drop compared to the previous year. Over the 2017-2020 period, export value decreased by 6%, with a compound annual growth rate of -2.0%. The highest value was recorded in 2018 at 7 879 million US dollars, which also experienced the largest increase of 30.2%.

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

From 2017 to 2020, China, the United States, and the Netherlands were the leading buyers of semi-bleached or bleached kraft or soda wood pulp from MERCOSUR in value terms, excluding dissolving grades. China made up 41.2% of export value, the United States 15.2%, and the Netherlands 9.7%. Collectively, these three markets accounted for 66.1% of total export value.

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

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

Imports bleached kraft or soda pulp to MERCOSUR

Imports in kind, K t

MERCOSUR's imports of semi-bleached or bleached kraft or soda wood pulp, excluding dissolving grades, increased for the second consecutive year. In 2020, imports reached approximately 443 thousand tons, a notable 18.7% rise from 2019. Over the 2017-2020 period, import volume grew by 5.6%, with a compound annual growth rate of 1.8%. The lowest volume was recorded in 2018 at 370 thousand tons, which also saw the largest decline of 11.8%.

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

The import structure for semi-bleached or bleached kraft or soda wood pulp in MERCOSUR, excluding dissolving grades, was quite diversified from 2017 to 2020. The United States accounted for 16.0% of import volume, Chile for 2.8%, and Free Zones for 2.2%. Together, these three sources represented only 21.0% of total imports, with the remaining 79.0% spread across numerous smaller markets.

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 rising for two years, the value of semi-bleached or bleached kraft or soda wood pulp imports into MERCOSUR, excluding dissolving grades, declined. In 2020, imports amounted to 255 million US dollars, down 18.7% from the previous year. Between 2017 and 2020, import value decreased by 9.4%, averaging an annual decline of 3.2%. The peak value was in 2019 at 313 million US dollars, while the largest increase occurred in 2018 with a 6.8% rise.

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

From 2017 to 2020, MERCOSUR's suppliers of semi-bleached or bleached kraft or soda wood pulp, excluding dissolving grades, were diverse. The United States contributed 23.8% of import value, Chile 3.0%, and Free Zones 1.8%. Combined, these three sources made up only 28.6% of total import value, with many other countries holding smaller but notable shares.

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

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