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

Earlier Report Observations

From 2018 to 2020, Uruguay's bleached pulp market volume grew from 2.56 million tons to 2.81 million tons. This increase was supported by the ongoing operations of major existing mills, such as UPM's facility in Fray Bentos and the Montes del Plata plant, which benefited from the global trend toward sustainable packaging and substitution of plastics. This trend boosted demand for short-fiber bleached eucalyptus pulp, a key Uruguayan product. In August 2019, UPM's announcement of a $2.7 billion investment to build a new 2.1 million-ton mill in Paso de los Toros signaled future capacity expansion, further solidifying the country's production base.

Market volume experienced a modest contraction in 2021 and 2022, dipping to 2.73 million tons in 2022. This period coincided with the ongoing global adjustments from the COVID-19 pandemic, which affected pulp demand and prices worldwide. However, a transformative event occurred in April 2022 when UPM's Paso de los Toros mill commenced operations. While its full impact was not immediate in the 2022 annual figures, the startup marked a pivotal shift in the country's production landscape.

The market surged to 3.52 million tons in 2023, driven primarily by the new UPM Paso de los Toros mill reaching its full operational capacity of 2.1 million tons per year. This massive addition of production capability, combined with sustained global demand for certified and sustainable pulp used in tissue and packaging papers, propelled Uruguay's market volume to a new peak, cementing its role as a major bleached kraft pulp producer.

Production bleached kraft or soda pulp in Uruguay

In kind, 2017-2020, K t

From 2017 to 2020, Uruguay held the 10th position globally in the production 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

Uruguay's production of semi-bleached or bleached kraft or soda wood pulp, excluding dissolving grades, grew for the second year in a row. In 2020, the country produced 2 793 K t, marking a moderate year-on-year increase of 6.7%. Over the 2017–2020 period, production rose by 5.6%, which translates to an annualized growth rate of 1.8%. The lowest output was recorded in 2018 at 2 543 K t, with the largest decline that year at 3.8%.

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

Exports bleached kraft or soda pulp from Uruguay

Exports in kind, t

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

Between 2017 and 2020, Argentina was the primary destination for Uruguay's exports of semi-bleached or bleached kraft or soda wood pulp, excluding dissolving grades, consistently accounting for 100.0% of total exports in volume.

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

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

Exports in value, K $ US

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

From 2017 to 2020, Argentina dominated as the key and nearly exclusive market for Uruguay's exports of semi-bleached or bleached kraft or soda wood pulp, excluding dissolving grades, in value terms, with a share of 100.0%.

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

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

Imports bleached kraft or soda pulp to Uruguay

Imports in kind, t

Uruguay's imports of foreign semi-bleached or bleached kraft or soda wood pulp, excluding dissolving grades, increased for the second consecutive year. In 2020, import volume reached 20 343 t, showing a significant rise of 16.4% compared to 2019. Over the 2017–2020 period, imports fell by 10.5%, with a compound annual growth rate of -3.6%. The lowest volume was in 2018 at 16 455 t, with the steepest decline that year at 27.6%.

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

From 2017 to 2020, the United States (20.1% of import volume), Brazil (13.6%), and Chile (10.4%) formed the core of Uruguay's imports in kind, together representing 44.1% of total flows.

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

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

Imports in value, K $ US

Uruguay's import value of semi-bleached or bleached kraft or soda wood pulp, excluding dissolving grades, declined for the third year in a row. In 2020, imports totaled 7 540 K US$, a sharp drop of 35.9% from the previous year. Between 2017 and 2020, imports decreased by 44.8%, equating to an annualized rate of -17.9%.

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

Throughout 2017–2020, the three largest markets—the United States, Brazil, and Chile—remained central to Uruguay's imports in value terms, collectively accounting for 46.1% of total flows.

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

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