Unbleached kraft or soda wood pulp excluding dissolving grades market in Canada

Earlier Report Observations

The Canadian unbleached kraft pulp market experienced significant volatility between 2018 and 2024. After growth in 2019, the market contracted sharply in 2020 to 295.6 thousand tonnes. This decline was driven by the COVID-19 pandemic, which temporarily halted economic activity and reduced demand for printing paper, adversely affecting pulp and paper production in Quebec.

A strong recovery followed in 2021, with market volume rising to 394.2 thousand tonnes. This rebound was primarily due to China's ban on recovered paper imports, which forced Chinese cardboard manufacturers to shift to virgin unbleached kraft pulp, significantly boosting demand for Canadian exports. The market continued to expand slightly in 2022, reaching 405.8 thousand tonnes.

In 2023, the market declined to 365.6 thousand tonnes as reduced pulp and paper production in North America tightened supply and pushed wood pulp prices up by 9.5%. By 2024, new production capacity entered the market, including the commercial restart of Nordic Kraft's plant in Lebel-sur-Quévillon with over 300 thousand tonnes of annual unbleached kraft pulp capacity, responding to strong demand from buyers in Quebec, the US, and China.

Production unbleached kraft or soda pulp in Canada

In kind, 2017-2020, K t

From 2017 to 2020, Canada ranked 8th globally in production volume of unbleached kraft or soda wood pulp, excluding dissolving grades.

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

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

In 2020, Canada produced 537.0 K t of unbleached kraft or soda wood pulp, excluding dissolving grades, marking a 20.1% decrease from the previous year. Over the period from 2017 to 2020, production fell by 14.8%, which translates to an annualized decline of 5.2%. The highest production level was recorded in 2018 at 672.0 K t, with the largest year-over-year increase of 6.7% also occurring that year.

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

In value, 2017-2020, M $ US

Canada's production of unbleached kraft or soda wood pulp, excluding dissolving grades, declined for the second year in a row. In 2020, the output was valued at 278.8 M $ US, down 25.6% compared to 2019. From 2017 to 2020, production decreased by 23.5%, averaging an 8.5% annualized drop. The peak value was reached in 2018 at 502.0 M $ US, which also saw the largest increase of 37.8%.

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

Exports unbleached kraft or soda pulp from Canada

Exports in kind, K t

Exports of unbleached kraft or soda wood pulp, excluding dissolving grades, from Canada fell for the second consecutive year. In 2020, Canada exported 254.1 K t, a decrease of 3.6% from 2019. However, over the 2017-2020 period, exports grew by 2.8%, with an annualized rate of 0.9%. The highest export volume was in 2018 at 270.0 K t, accompanied by the largest increase of 9.2% that year.

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

Between 2017 and 2020, the United States, China, and Thailand were the top buyers of unbleached kraft or soda wood pulp, excluding dissolving grades, from Canada. The United States accounted for 33.1% of exports in kind, China for 33.0%, and Thailand for 17.5%, together making up 83.6% of total exports.

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 unbleached kraft or soda wood pulp, excluding dissolving grades, from Canada declined for the second year in a row. In 2020, exports were valued at 132.0 M $ US, a significant drop of 10.3% from 2019. From 2017 to 2020, exports decreased by 7.7%, averaging a 2.6% annualized decline. The peak value was in 2018 at 201.7 M $ US, which also saw the largest increase of 41.1%. The largest decline occurred in 2019, with a 27.1% decrease.

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

From 2017 to 2020, China, the United States, and Thailand were the main destinations for exports in value terms. China represented 33.3% of exports, the United States 29.4%, and Thailand 18.9%, collectively accounting for 81.7% of total export flows.

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

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

Imports unbleached kraft or soda pulp to Canada

Imports in kind, K t

The market showed an unstable trend during this period. Imports reached their lowest point in 2017 and peaked in 2019, with a 123-fold difference between these years. In 2020, imports to Canada amounted to 12.7 K t, an 80.5% decrease from the previous year. The highest import volume was recorded in 2019 at 65.0 K t, which also experienced the largest increase of 3,573.4%.

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

From 2017 to 2020, the country structure of imports in kind was highly concentrated, with the United States alone accounting for 97.4% of total flows.

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

Volatility characterized the market during these years. Imports hit a low in 2017 and a high in 2019, with a 70-fold variation. In 2020, import shipments to Canada reached 5.1 M $ US, declining by 72.7% compared to 2019. The maximum value was in 2019 at 18.8 M $ US, which also saw the largest increase of 1,707.0%.

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

Throughout 2017-2020, the United States was the dominant and nearly exclusive source for imports in value terms of unbleached kraft or soda wood pulp, excluding dissolving grades, to Canada, holding a 95.5% share.

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

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