Unbleached kraft or soda wood pulp excluding dissolving grades market in South Africa

Earlier Report Observations

The market for unbleached kraft or soda wood pulp in South Africa contracted from over 304 000 t in 2018 to approximately 211 000 t in 2023, with production showing a similar decline from 300 000 t to a low of 181 000 t in 2021 before a partial recovery. This initial downturn occurred alongside Sappi's continued investments in diversifying its product mix towards specialties and packaging, while the later rebound in 2022 corresponded with increased demand for sustainable paper-based packaging and significant industry modernization efforts.

Regulatory changes, particularly the introduction of Extended Producer Responsibility (EPR) regulations in May 2021, directly impacted producers and coincided with the market's recovery phase. Sappi's strategic moves, including applying for a 5% tariff on imported newsprint in 2022 and subsequently closing high-cost mills in 2023 to focus on packaging and dissolving wood pulp, reshaped production capacity. Concurrently, Mpact's R1.2 billion upgrade to its Mpumalanga mill and global pressures from supply chain disruptions and rising wood fiber costs further influenced the market's volume and cost structure throughout the period.

Production unbleached kraft or soda pulp in South Africa

In kind, 2018-2021, K t

Globally, South Africa ranked as the 15th largest producer of unbleached kraft or soda wood pulp, excluding dissolving grades, between 2018 and 2021.

Top producers of unbleached kraft or soda pulp, 2018-2021

World map of production of unbleached kraft or soda pulp, 2018-2021

South Africa's production of unbleached kraft or soda wood pulp, excluding dissolving grades, declined for the third year in a row. In 2021, the country produced 181.0 thousand tonnes, marking a 15.8% decrease compared to the previous year. From 2018 to 2021, overall production fell by 39.7%, which translates to an average annual decline of 15.5%.

Annual dynamics of production in South Africa in kind, 2018-2021, K t

Exports unbleached kraft or soda pulp from South Africa

Exports in kind, t

The market displayed significant volatility during this period. Export volumes fluctuated dramatically, with a 137-fold difference between the low in 2020 and the high in 2021. In 2021, South Africa exported 2 tonnes of unbleached kraft or soda wood pulp, excluding dissolving grades, representing a massive increase of 13,562.0% from 2020.

Annual dynamics of product's exports from South Africa in kind, 2018-2021, t

From 2018 to 2021, Eswatini was the dominant buyer of unbleached kraft or soda wood pulp, excluding dissolving grades, from South Africa, accounting for 99.0% of total exports in volume terms.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from South Africa in kind, 2018-2021

Exports in value, K $ US

The market experienced notable volatility over these years. The lowest export value was recorded in 2020, while the highest was in 2021, showing a 29-fold gap between them. In 2021, South Africa exported 0.2 thousand US dollars worth of unbleached kraft or soda wood pulp, excluding dissolving grades, which was a 2,817.5% increase compared to 2020.

Annual dynamics of product's exports from South Africa in value, 2018-2021, K $ US

Between 2018 and 2021, Eswatini was the leading destination for exports in value terms, making up 88.7% of total flows. Other markets contributed smaller shares, forming a long tail of minor partners.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from South Africa in value, 2018-2021

Imports unbleached kraft or soda pulp to South Africa

Imports in kind, t

The market showed signs of volatility throughout the observed period. Import volumes varied significantly, with a peak-to-trough amplitude of 4.5 times from 2019 to 2021. The maximum volume was recorded in 2019 at 8,873 tonnes, followed by the largest decline of 67.6% in 2020 and the largest increase of 116.0% in 2019. In 2021, imports totaled 1,961 tonnes, a 31.7% decrease year-over-year.

Annual dynamics of product's imports to South Africa in kind, 2018-2021, t

From 2018 to 2021, New Zealand and Russia were the primary suppliers of unbleached kraft or soda wood pulp, excluding dissolving grades, to South Africa, together accounting for 81.8% of total imports in volume. The remaining share was distributed among other countries.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to South Africa in kind, 2018-2021

Imports in value, K $ US

The market exhibited an unstable trend during this timeframe. Import values fluctuated by 3.4 times, with the highest in 2019 and the lowest in 2021. The maximum value was 5,276 thousand US dollars in 2019, which saw the largest increase of 59.6%. The largest decline of 70.1% occurred in 2020. In 2021, imports amounted to approximately 1,571 thousand US dollars, showing little change from the previous year.

Annual dynamics of product's imports to South Africa in value, 2018-2021, K $ US

Between 2018 and 2021, New Zealand and Russia jointly accounted for 83.2% of the total import value of unbleached kraft or soda wood pulp, excluding dissolving grades, to South Africa. The rest was spread across various smaller markets.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to South Africa in value, 2018-2021