Wood charcoal market in Brazil

Earlier Report Observations

Between 2018 and 2019, Brazilian wood charcoal production remained stable at around 6.4 million tons, underpinned by steady demand from the steel industry which used charcoal as a reducing agent in iron smelting. Over 80% of production was concentrated in the state of Minas Gerais, primarily from eucalyptus plantations. While physical volume saw a minor dip, the production value rose significantly due to heightened demand from the metallurgical sector.

Output increased to 6.56 million tons in 2020 as Brazil expanded its share of the global charcoal market, with the domestic steel sector remaining the primary consumer. A sharp rise followed, reaching 7.30 million tons in 2021 and 7.60 million tons in 2022, driven by legislative initiatives promoting sustainable charcoal from planted forests and the growing use of charcoal as a bio-reductant for low-carbon steel production. During this period, debates began on banning charcoal from native forests and modernizing carbonization furnaces.

In 2023, production fell to 7.15 million tons, a drop of 444 thousand tons from the previous year, coinciding with stricter environmental legislation and the mandatory implementation of the Document of Forest Origin for charcoal transport and storage. Despite the volume contraction, the price for charcoal from planted forests surpassed that from native forests, reflecting the increasing valuation of sustainable product.

Production wood charcoal in Brazil

In kind, 2018-2021, K t

Brazil was the world's leading producer of wood charcoal from 2018 to 2021.

Top producers of wood charcoal, 2018-2021

World map of production of wood charcoal, 2018-2021

Wood charcoal production in Brazil increased for the second year in a row. In 2021, Brazil produced 7 300 K t of wood charcoal, showing a significant rise of 11.3% compared to 2020. Over the period from 2018 to 2021, production grew by 13.5%, which translates to an average annual increase of 4.3%. The lowest production level was in 2019 at 6 390 K t, with the largest decline that year at 0.6%.

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

In value, 2018-2021, M $ US

Wood charcoal production in Brazil saw growth for the second consecutive year. In 2021, the output was valued at 3 369 M $ US, marking an uptick of 15.0% from the previous year. From 2018 to 2021, production increased by 14.4%, averaging 4.6% per year. The minimum value occurred in 2019 at 2 768 M $ US, with the largest decline that year at 6.0%.

Annual dynamics of production in Brazil in value, 2018-2021, M $ US

Exports wood charcoal from Brazil

Exports in kind, t

Market performance showed noticeable fluctuations during this period. Export volumes reached their lowest point in 2018 and peaked in 2020, with a 3.5-fold difference between these years. In 2021, Brazil exported 13 240 t of wood charcoal, representing a decline of 16.3% compared to 2020. The maximum volume was recorded in 2020 at 15 822 t, while the largest increase occurred in 2019 at 224.7%.

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

From 2018 to 2021, the United States and Germany were the dominant destinations for Brazil's wood charcoal exports in kind, together accounting for 87.0% of total flows, with the remainder distributed among smaller markets.

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

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

Exports in value, K $ US

The data reveals irregular changes, indicating a volatile market environment. Export values hit their lowest in 2018 and peaked in 2020, with a 3.4-fold gap between these years. In 2021, wood charcoal exports from Brazil reached 6 111 K $ US, reflecting a significant decline of 13.6% compared to the previous year. The maximum value was in 2020 at 7 070 K $ US, and the largest increase was recorded in 2019 at 207.0%.

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

Over 2018–2021, the United States and Germany together captured 88.7% of Brazil's total wood charcoal exports in value terms, while the rest was spread thinly across other markets.

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

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

Imports wood charcoal to Brazil

Imports in kind, t

The market exhibited an unstable trend throughout the timeframe. Import volumes sank to their lowest in 2020 and peaked in 2021, with a 2.1-fold ratio between these years. In 2021, Brazil imported 25 677 t of wood charcoal, equivalent to a year-on-year rise of 107.3%. The minimum volume was recorded in 2020 at 12 387 t, and the largest decline occurred that year at 45.5%.

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

From 2018 to 2021, Indonesia and Paraguay remained the main sources for Brazil's wood charcoal imports in kind, jointly accounting for 96.8% of total flows, with other partners making up the remaining share.

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

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

Imports in value, K $ US

The market showed signs of volatility over the observed period. Import values were at their lowest in 2020 and highest in 2021, reflecting a 2.4-fold gap. In 2021, Brazil imported a total of 18 281 K $ US of wood charcoal, up by 142.5% compared to 2020. The minimum value was in 2020 at 7 540 K $ US, and the largest decline was recorded that year at 27.3%.

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

In 2018–2021, Indonesia remained the main source for wood charcoal imports to Brazil, taking 82.6% of total imports in value terms, while the remaining volume was distributed among other countries.

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

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