Wood in the rough market in El Salvador

Earlier Report Observations

The market volume for wood in the rough in El Salvador declined steadily from 3 120 тыс. т in 2018 to 3 067 тыс. т in 2023. This downward trend began with the implementation of a 5% VAT on previously exempted rough wood, which increased operational costs and encouraged sector formalization. Tax exemptions for new timber plantations supported long-term supply but did not reverse the contraction. Market structure remained focused on distributors serving construction and small manufacturers, with a persistent preference for high-quality dark woods like Laurel and Cedro.

By 2022, a drop in regional wood and manufactured wood sales across Central America, driven by competition and demand shifts, directly contributed to lower volumes. Government measures to contain fuel and raw material price increases helped mitigate production costs, but the market continued to shrink. In 2024, the approval of a metallic mining law granted the state exclusive mining rights, altering the regulatory landscape for extractive sectors, while low foreign direct investment levels persisted.

Production wood in the rough in El Salvador

In kind, 2018-2021, K t

Top producers of wood in the rough, 2018-2021

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

El Salvador's production of wood in the rough declined for the third consecutive year. In 2021, the country produced 3 095 K t of wood in the rough, remaining virtually unchanged from the 2020 level.

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

In value, 2018-2021, M $ US

El Salvador's production of wood in the rough declined for the third consecutive year. In 2021, the output was valued at 641.7 M $ US, representing a controlled decrease of 5.5% year-over-year. Between 2018 and 2021, production decreased by 17.4%, equating to an annualized rate of 6.2%.

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

Exports wood in the rough from El Salvador

Exports in kind, t

After two years of decline, El Salvador's exports of wood in the rough increased in 2021. Shipments totaled 5 997 t, marking a steep uptick of 44.6% compared to 2020. Between 2018 and 2021, exports decreased by 48.7%, with an annualized rate of 19.9%. The lowest volume was recorded in 2020 at 4 147 t, while the largest decline occurred in 2020 at 44.9%.

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

From 2018 to 2021, India was the dominant destination for El Salvador's wood in the rough exports in kind, accounting for 84.7% of total flows, with the remaining share distributed among a fragmented group of other markets.

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

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

Exports in value, K $ US

After two years of decline, El Salvador's exports of wood in the rough increased in 2021. The country exported 1 243 K $ US worth of wood in the rough, showing a dramatic rise of 37.1% year-over-year. Over the period from 2018 to 2021, exports decreased by 57.1%, with a compound annual growth rate of -24.6%. The lowest value was recorded in 2020 at 907 K $ US, while the largest decline occurred in 2020 at 47.6%.

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

From 2018 to 2021, India clearly dominated El Salvador's wood in the rough exports in value terms, taking 83.5% of total flows, while other countries each held significantly smaller shares.

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

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

Imports wood in the rough to El Salvador

Imports in kind, t

Volatility characterized the market behavior during these years. Imports peaked in 2019 at 1 631 t and reached their lowest point in 2020 at 14 t, with a 119-fold difference between these years. In 2021, El Salvador's imports of wood in the rough amounted to 75 t, which is 442.9% higher than in 2020. The largest decline was recorded in 2020 at 99.2%.

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

From 2018 to 2021, Guatemala remained the main source for El Salvador's wood in the rough imports in kind, accounting for 84.3% of total flows, with the remaining share distributed across various smaller markets.

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

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

Imports in value, K $ US

The data reveals irregular changes, indicating a volatile market environment. Imports reached their highest value in 2018 and their lowest in 2020, with a peak-to-trough ratio of 7.1 times. In 2021, El Salvador's imports of wood in the rough amounted to 104 K $ US, which is 522.2% more than in the previous year. The minimum value was recorded in 2020 at 17 K $ US, while the largest decline occurred in 2020 at 81.9%.

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

From 2018 to 2021, the main markets for El Salvador's wood in the rough imports in value terms were Honduras (41.2%), Russia (33.3%), and Guatemala (20.4%), together accounting for 94.9% of total flows.

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

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