Unbleached kraft or soda wood pulp excluding dissolving grades market in Latin America and the Caribbean

Earlier Report Observations

The Latin American market for unbleached kraft pulp experienced moderate growth in 2018 and 2019, reaching 2.4 million tonnes. In 2020, the COVID-19 pandemic disrupted global supply chains; a sudden surge in demand for virgin wood and pulp, coupled with constrained scrap imports, tightened local supply and contributed to a market contraction to 2.3 million tonnes.

Market volume rebounded strongly in 2021, climbing to over 2.4 million tonnes. This recovery was driven by technological advancements in production and increased demand for paper packaging due to its light weight and recyclability. The following year, the market stabilized near this level. The startup of UPM's new pulp mill in Uruguay in the second half of 2022 significantly boosted regional capacity, while rising pulp prices and ongoing global supply chain pressures balanced the market dynamics.

In 2023, the market volume declined to 2.3 million tonnes. This was primarily due to increased costs and limited availability of hardwood and softwood pulp, which drove pulp prices higher by over 12% and squeezed manufacturers' margins. Although demand for sustainable kraft packaging in segments like cosmetics grew, the overall market was constrained by these elevated input costs and supply instability.

Production unbleached kraft or soda pulp in Latin America and the Caribbean

In kind, 2017-2020, K t

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

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

Latin America and the Caribbean saw a second straight year of declining production for unbleached kraft or soda wood pulp, excluding dissolving grades. In 2019, output stood at 2 721 K t, marking a slight 3.0% drop from the previous year. Production peaked in 2018 at 2 809 K t, which also represented the largest annual increase of 2.8%.

Annual dynamics of production in Latin America and the Caribbean in kind, 2017-2020, K t

Exports unbleached kraft or soda pulp from Latin America and the Caribbean

Exports in kind, K t

Exports of unbleached kraft or soda wood pulp, excluding dissolving grades, from Latin America and the Caribbean fell for the second consecutive year. In 2020, shipments totaled 434.2 K t, down 5.8% from 2019. Over the 2017-2020 period, exports decreased by 4.2%, with a compound annual growth rate of 1.4%. The highest export volume was recorded in 2018 at 489.1 K t, which also saw the largest annual rise of 7.9%, while the steepest decline occurred in 2019 at 5.8%.

Annual dynamics of product's exports from Latin America and the Caribbean in kind, 2017-2020, K t

From 2017 to 2020, China was the top buyer of unbleached kraft or soda wood pulp, excluding dissolving grades, from Latin America and the Caribbean, accounting for 56.5% of export volume. Asia, not elsewhere specified, followed with 10.2%, and the United States with 9.9%. Together, these three destinations made up 76.5% of total exports.

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

World map of product's exports from Latin America and the Caribbean in kind, 2017-2020

Exports in value, M $ US

Export value for unbleached kraft or soda wood pulp, excluding dissolving grades, from Latin America and the Caribbean dropped for the second year in a row. In 2020, exports were valued at 232.9 M $ US, a significant 18.8% decrease from 2019. Over the 2017-2020 span, export value fell by 17.1%, with a compound annual growth rate of 6.1%. The peak was in 2018 at 408.7 M $ US, which also experienced the largest annual increase of 45.5%, while the sharpest decline happened in 2019 at 29.8%.

Annual dynamics of product's exports from Latin America and the Caribbean in value, 2017-2020, M $ US

Between 2017 and 2020, China led as the primary destination for unbleached kraft or soda wood pulp, excluding dissolving grades, from Latin America and the Caribbean in value terms, with a 54.7% share. The United States accounted for 10.7%, and Asia, not elsewhere specified, for 10.1%. Combined, these three markets represented 75.6% of total export value.

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

World map of product's exports from Latin America and the Caribbean in value, 2017-2020

Imports unbleached kraft or soda pulp to Latin America and the Caribbean

Imports in kind, K t

In 2020, Latin America and the Caribbean imported 23.4 K t of unbleached kraft or soda wood pulp, excluding dissolving grades, a sharp 45.5% decrease from 2019. From 2017 to 2020, imports fell by 58.5%, translating to an annualized rate of 25.4%. The only increase during this period was in 2019, at 4.1%.

Annual dynamics of product's imports to Latin America and the Caribbean in kind, 2017-2020, K t

During 2017-2020, Russia was the leading source for imports of unbleached kraft or soda wood pulp, excluding dissolving grades, into Latin America and the Caribbean, with a 21.1% share by volume. Canada contributed 12.2%, and the United States 9.5%. Together, these three countries supplied 42.8% of total imports.

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

World map of product's imports to Latin America and the Caribbean in kind, 2017-2020

Imports in value, M $ US

Import value for unbleached kraft or soda wood pulp, excluding dissolving grades, into Latin America and the Caribbean declined for the third consecutive year. In 2020, imports amounted to 22.3 M $ US, down 28.1% from the previous year. Between 2017 and 2020, import value decreased by 38.5%, equivalent to an annualized rate of 15.0%.

Annual dynamics of product's imports to Latin America and the Caribbean in value, 2017-2020, M $ US

From 2017 to 2020, imports of unbleached kraft or soda wood pulp, excluding dissolving grades, into Latin America and the Caribbean were sourced from numerous countries. Even the top three suppliers—Russia, Canada, and the United States—collectively accounted for only 40.1% of total import value.

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

World map of product's imports to Latin America and the Caribbean in value, 2017-2020