Wood in the rough market in Ecuador

Earlier Report Observations

From 2018 to 2019, the market volume for wood in the rough in Ecuador remained stable at around 4 470 thousand tons. During this period, the government promoted forestry incentives through the Ministry of Agriculture to boost domestic raw material supply for the timber industry, aiming to reduce logging in primary forests. Concurrently, the persistent issue of illegal logging, particularly in the Amazon, posed challenges for sector formalization. In 2019, the particleboard manufacturer Novopan started up a second production line, enhancing its export capacity and diversifying markets, which increased demand for rough wood as feedstock.

The market grew to 4 606 thousand tons in 2020, largely due to the COVID-19 pandemic, which spurred demand for construction and renewable energy projects, benefiting the timber sector. This expansion continued into 2021, with the market reaching 4 685 thousand tons. A key driver was the rapid 53% growth in the agglomerated wood panel segment, which raised consumption of raw wood. Companies like Aglomerados Cotopaxi expanded production and diversified markets, contributing to the sector's overall dynamism. However, in 2022, the market volume dipped to 4 599 thousand tons as production eased and exports of rough wood increased.

A notable shift occurred in 2023 when the market volume recovered to 4 693 thousand tons. This was primarily because exports of rough wood nearly halted, while domestic processing remained active, reflecting a broader industry trend toward value-added products. Ecuador solidified its position among Latin America's top wood exporters, with the forest-based industry contributing significantly to GDP. Ongoing efforts by the government and sector associations to formalize the market, simplify procedures, and promote sustainable practices supported this structural evolution.

Production wood in the rough in Ecuador

In kind, 2017-2020, K t

Top producers of wood in the rough, 2017-2020

World map of production of wood in the rough, 2017-2020

Wood in the rough production in Ecuador increased for the third consecutive year. In 2020, Ecuador produced 4,875 K t of wood in the rough, showing no significant change compared to 2019.

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

In value, 2017-2020, M $ US

After a two-year contraction, Ecuador's wood in the rough production volume increased. In 2020, the output was valued at 729.6 M $ US, representing a solid 14.7% rise from 2019. The lowest value was recorded in 2019 at 635.9 M $ US, which also saw the largest decline of 11.7%.

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

Exports wood in the rough from Ecuador

Exports in kind, K t

After a two-year increase, wood in the rough exports from Ecuador declined. In 2020, Ecuador exported 269.8 K t, down 31.7% from the previous year. Over the 2017-2020 period, exports decreased by 21.8%, with a compound annual growth rate of 7.9%. The highest volume was recorded in 2019 at 394.8 K t, while the largest increase occurred in 2018 at 12.7%.

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

From 2017 to 2020, India remained the primary destination for Ecuador's wood in the rough exports, accounting for 74.0% of total exports in kind, with other markets playing much smaller roles.

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

World map of product's exports from Ecuador in kind, 2017-2020

Exports in value, K $ US

Foreign wood in the rough supplies from Ecuador declined for the second consecutive year. In 2020, exports stood at 40,373 K $ US, a notable 21.7% reduction compared to 2019. Over the 2017-2020 period, exports decreased by 23%, with a compound annual growth rate of 8.3%. The peak value was recorded in 2018 at 57,632 K $ US, which also saw the largest increase of 10.0%.

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

From 2017 to 2020, the geographical pattern of exports in value terms was marked by India's strong dominance, with its share reaching 74.4% of total flows, while other partners held relatively minor shares.

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

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

Imports wood in the rough to Ecuador

Imports in kind, K t

Wood in the rough deliveries to Ecuador declined for the third consecutive year. In 2020, Ecuador imported 0.0 K t of wood in the rough, a sharp 94.3% drop from 2019. Between 2017 and 2020, imports decreased by 98.8%, equating to an annualized rate of 76.9%.

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

Over the 2017-2020 period, Chile and Colombia together captured 99.1% of total imports in kind, with the remainder thinly spread across other markets.

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

World map of product's imports to Ecuador in kind, 2017-2020

Imports in value, K $ US

The data reveals irregular changes, indicating a volatile market environment. In 2020, Ecuador imported 6 K $ US of wood in the rough, a sharp 61.9% fall from the previous year. The highest value was observed in 2018 at 60 K $ US, while the lowest occurred in 2020, resulting in a peak-to-trough ratio of 9.3 times. The largest decline was recorded in 2019 at 71.9%, and the largest increase in 2018 at 60.4%.

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

Over the 2017-2020 period, Colombia and Chile were the main sources for imports in value terms, jointly accounting for 93.0% of total flows, with the residual share distributed among other markets.

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

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