MERCOSUR: Wood Fuel Market 2024

Wood Fuel Market Size in MERCOSUR

The MERCOSUR wood fuel market fell modestly to $X in 2022, remaining constant against the previous year. The market value increased at an average annual rate of +2.6% from 2012 to 2022; the trend pattern indicated some noticeable fluctuations being recorded in certain years. Over the period under review, the market attained the peak level at $X in 2019; however, from 2020 to 2022, consumption stood at a somewhat lower figure.

Wood Fuel Production in MERCOSUR

In value terms, wood fuel production fell slightly to $X in 2022 estimated in export price. Overall, production, however, recorded prominent growth. The most prominent rate of growth was recorded in 2017 when the production volume increased by 105%. The level of production peaked at $X in 2019; however, from 2020 to 2022, production remained at a lower figure.

Wood Fuel Exports

Exports in MERCOSUR

In 2022, approx. X cubic meters of wood fuel were exported in MERCOSUR; with an increase of 1.6% against the year before. In general, exports posted resilient growth. The pace of growth appeared the most rapid in 2021 with an increase of 326% against the previous year. Over the period under review, the exports attained the peak figure in 2022 and are likely to see steady growth in years to come.

In value terms, wood fuel exports contracted to $X in 2022. Overall, exports saw a significant expansion. The most prominent rate of growth was recorded in 2021 with an increase of 322%. As a result, the exports attained the peak of $X, leveling off in the following year.

Exports by Country

Brazil was the key exporter of wood fuel in MERCOSUR, with the volume of exports resulting at X cubic meters, which was approx. 68% of total exports in 2022. Ecuador (X cubic meters) ranks second in terms of the total exports with a 13% share, followed by Uruguay (9.6%). The following exporters - Argentina (X cubic meters) and Paraguay (X cubic meters) - together made up 6.7% of total exports.

Brazil was also the fastest-growing in terms of the wood fuel exports, with a CAGR of +39.2% from 2012 to 2022. At the same time, Uruguay (+29.4%), Ecuador (+5.2%) and Argentina (+1.3%) displayed positive paces of growth. By contrast, Paraguay (-5.5%) illustrated a downward trend over the same period. Brazil (+57 p.p.) and Uruguay (+6.3 p.p.) significantly strengthened its position in terms of the total exports, while Argentina, Paraguay and Ecuador saw its share reduced by -11.6%, -18.9% and -22.8% from 2012 to 2022, respectively.

In value terms, Brazil ($X) remains the largest wood fuel supplier in MERCOSUR, comprising 76% of total exports. The second position in the ranking was taken by Ecuador ($X), with a 6.7% share of total exports. It was followed by Argentina, with a 6.5% share.

From 2012 to 2022, the average annual rate of growth in terms of value in Brazil totaled +52.4%. The remaining exporting countries recorded the following average annual rates of exports growth: Ecuador (+1.4% per year) and Argentina (+8.4% per year).

Export Prices by Country

The export price in MERCOSUR stood at $X per cubic meter in 2022, declining by -2.4% against the previous year. Export price indicated pronounced growth from 2012 to 2022: its price increased at an average annual rate of +4.0% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, wood fuel export price increased by +29.8% against 2019 indices. The pace of growth was the most pronounced in 2014 an increase of 122% against the previous year. Over the period under review, the export prices reached the maximum at $X per cubic meter in 2018; however, from 2019 to 2022, the export prices stood at a somewhat lower figure.

Prices varied noticeably by country of origin: amid the top suppliers, the country with the highest price was Argentina ($X per cubic meter), while Uruguay ($X per cubic meter) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Brazil (+9.5%), while the other leaders experienced more modest paces of growth.

Wood Fuel Imports

Imports in MERCOSUR

In 2022, overseas purchases of wood fuel were finally on the rise to reach X cubic meters after three years of decline. Overall, imports showed a noticeable expansion. The pace of growth was the most pronounced in 2016 when imports increased by 392%. The volume of import peaked at X cubic meters in 2018; however, from 2019 to 2022, imports stood at a somewhat lower figure.

In value terms, wood fuel imports surged to $X in 2022. In general, imports enjoyed a significant increase. The most prominent rate of growth was recorded in 2016 when imports increased by 656%. Over the period under review, imports hit record highs at $X in 2018; however, from 2019 to 2022, imports failed to regain momentum.

Imports by Country

Chile was the major importer of wood fuel in MERCOSUR, with the volume of imports amounting to X cubic meters, which was approx. 75% of total imports in 2022. It was distantly followed by Peru (X cubic meters), comprising a 23% share of total imports.

Chile was also the fastest-growing in terms of the wood fuel imports, with a CAGR of +108.0% from 2012 to 2022. Peru (-47.5%) illustrated a downward trend over the same period. While the share of Chile (+74 p.p.) and Peru (+22 p.p.) increased significantly, the shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Chile ($X) constitutes the largest market for imported wood fuel in MERCOSUR, comprising 65% of total imports. The second position in the ranking was held by Peru ($X), with an 11% share of total imports.

In Chile, wood fuel imports increased at an average annual rate of +107.5% over the period from 2012-2022.

Import Prices by Country

The import price in MERCOSUR stood at $X per cubic meter in 2022, jumping by 30% against the previous year. In general, the import price posted a resilient expansion. The pace of growth was the most pronounced in 2020 when the import price increased by 99.9%. Over the period under review, import prices reached the maximum in 2022 and is expected to retain growth in the immediate term.

There were significant differences in the average prices amongst the major importing countries. In 2022, amid the top importers, the country with the highest price was Chile ($X per cubic meter), while Peru stood at $X per cubic meter.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Peru (+14.2%).

Source: IndexBox Platform