Wood in the rough market in Chile

Earlier Report Observations

The Chilean wood in the rough market started the period under the lasting impact of the 2016-2017 mega wildfires, which left a surplus of logs—many burnt or undersized—depressing log prices and triggering closures of small and medium sawmills. This contributed to a decline in production from 41 416 thousand tons in 2018 to 38 795 thousand tons by 2020. By mid-2018, log prices began to rise as burnt wood stocks were liquidated, but sawn timber prices remained under pressure, hitting a decade low in 2019 and forcing further mill shutdowns.

In subsequent years, production continued to decrease, reaching 36 406 thousand tons in 2023. By 2022, despite a peak in output of impregnated poles and beams, overall market volume kept falling due to lower investments in agricultural plantations, which reduced demand for treated wood. Concurrently, global factors such as supply constraints from Canada, Russia’s log export ban, and worldwide forest fires and pests influenced prices and availability in Chile.

The sustained contraction of the construction sector during 2024 further reduced demand and real prices for sawn and planed radiata pine, pointing to continued headwinds for the market.

Production wood in the rough in Chile

In kind, 2018-2021, K t

Globally, Chile ranked as the 13th largest producer of wood in the rough from 2018 to 2021.

Top producers of wood in the rough, 2018-2021

World map of production of wood in the rough, 2018-2021

Chile's production of wood in the rough increased after a two-year decline. In 2021, output reached 38 854 K t, remaining stable compared to the previous year. Over the 2018-2021 period, production decreased by 6.2%, with a compound annual growth rate of 2.1%. The lowest production level was recorded in 2020 at 38 795 K t, while the largest decline occurred in 2019 at 3.6%.

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

In value, 2018-2021, M $ US

Chile's production of wood in the rough increased for the second consecutive year. In 2021, the output was valued at 6 139 M $ US, marking a 21.8% rise compared to the previous year. Between 2018 and 2021, production grew by 7.5%, equivalent to an annualized rate of 2.5%. The lowest value was recorded in 2019 at 4 730 M $ US, with the largest decline that year at 17.1%.

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

Exports wood in the rough from Chile

Exports in kind, K t

In 2021, Chile exported 188.5 K t of wood in the rough, showing a moderate increase of 3.3% from the previous year. From 2018 to 2021, exports decreased by 31%, translating to an annualized rate of 11.6%. The lowest export volume was in 2020 at 182.4 K t, while the peak was in 2019 at 334.4 K t. The largest decline occurred in 2020 at 45.5%, and the largest increase was in 2019 at 22.4%.

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

From 2018 to 2021, China dominated Chile's exports of wood in the rough in volume terms, accounting for 85.1% of total flows, with other countries holding significantly smaller shares.

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

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

Exports in value, K $ US

In 2021, Chile exported 29 785 K $ US worth of wood in the rough, a 25.6% increase compared to 2020. Between 2018 and 2021, exports decreased by 20.9%, with an annualized rate of 7.5%. The lowest value was recorded in 2020 at 23 708 K $ US, while the highest was in 2019 at 39 614 K $ US. The largest decline occurred in 2020 at 40.2%.

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

From 2018 to 2021, the leading destinations for Chile's wood in the rough exports in value terms were China with 66.2%, Peru with 13.5%, and Ghana with 7.8%. Together, these three countries accounted for 87.6% of total export flows.

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

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

Imports wood in the rough to Chile

Imports in kind, K t

Import levels showed volatility during this period, fluctuating between the high in 2019 and the low in 2018. In 2021, Chile imported 0.0 K t of wood in the rough, a steep reduction of 74.7% compared to the previous year.

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

From 2018 to 2021, the United States led Chile's imports of wood in the rough in volume terms, holding a 75.9% share of total flows, while other markets accounted for the remainder.

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

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

Imports in value, K $ US

Chile's imports of wood in the rough increased for the third consecutive year. In 2021, imports amounted to 131 K $ US, up by 103.8% year-over-year. Between 2018 and 2021, imports surged by 67 390.6%, equivalent to an annualized rate of 777.2%.

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

Over the 2018-2021 period, Paraguay and the United States were the dominant partners for Chile's imports of wood in the rough in value terms, with other countries forming the remaining share.

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

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