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18, Oct 2019 -

Global Dissolving Wood Pulp Market 2019 - China Stil Dominates the Market, Despite a Trade War a Softer Economy

Global Dissolving Wood Pulp Market 2019 - China Stil Dominates the Market, Despite a Trade War a Softer Economy


IndexBox has just published a new report: 'World - Chemical Wood Pulp (Dissolving Grades) - Market Analysis, Forecast, Size, Trends and Insights'. Here is a summary of the report's key findings.

The global dissolving wood pulp market revenue amounted to $9.3B in 2018, jumping by 6.5% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). The market value increased at an average annual rate of +3.9% over the period from 2007 to 2018; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The growth pace was the most rapid in 2013 with an increase of 21% y-o-y. Over the period under review, the global dissolving wood pulp market attained its peak figure level in 2018 and is likely to see steady growth in the near future.

Consumption By Country

The country with the largest volume of dissolving wood pulp consumption was China (4.9M tonnes), accounting for 50% of total consumption. Moreover, dissolving wood pulp consumption in China exceeded the figures recorded by the world's second-largest consumer, India (889K tonnes), fivefold. The third position in this ranking was occupied by Indonesia (590K tonnes), with a 6.1% share.

From 2007 to 2018, the average annual rate of growth in terms of volume in China totaled +5.2%. In the other countries, the average annual rates were as follows: India (+8.7% per year) and Indonesia (+3.3% per year).

In value terms, China ($4.7B) led the market, alone. The second position in the ranking was occupied by India ($799M). It was followed by the U.S..

Market Forecast 2019-2025

Driven by increasing demand for dissolving wood pulp worldwide, the market is expected to continue an upward consumption trend over the next seven years. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +2.3% for the seven-year period from 2018 to 2025, which is projected to bring the market volume to 11M tonnes by the end of 2025.

Production 2007-2018

Global dissolving wood pulp production stood at 8.6M tonnes in 2018, increasing by 2.2% against the previous year. The total output volume increased at an average annual rate of +3.0% from 2007 to 2018; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The pace of growth appeared the most rapid in 2013 with an increase of 18% against the previous year. Over the period under review, global dissolving wood pulp production reached its peak figure volume in 2018 and is expected to retain its growth in the immediate term.

In value terms, dissolving wood pulp production amounted to $7.9B in 2018 estimated in export prices. The total output value increased at an average annual rate of +3.2% from 2007 to 2018; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The pace of growth was the most pronounced in 2013 with an increase of 16% y-o-y. In that year, global dissolving wood pulp production attained its peak level of $8.2B. From 2014 to 2018, global dissolving wood pulp production growth failed to regain its momentum.

Production By Country

The countries with the highest volumes of dissolving wood pulp production in 2018 were China (1.8M tonnes), the U.S. (1.4M tonnes) and South Africa (950K tonnes), together comprising 48% of global production. Brazil, Canada, Sweden, Austria, Finland, India, the Czech Republic, Japan and Norway lagged somewhat behind, together comprising a further 41%.

From 2007 to 2018, the most notable rate of growth in terms of dissolving wood pulp production, amongst the main producing countries, was attained by Brazil, while the other global leaders experienced more modest paces of growth.

Global Trade 2007-2018

In 2018, approx. 4.6M tonnes of dissolving wood pulp were exported worldwide; increasing by 4.1% against the previous year. Overall, dissolving wood pulp exports continue to indicate a buoyant increase. The pace of growth was the most pronounced in 2008 with an increase of 15% y-o-y. Over the period under review, global dissolving wood pulp exports reached their peak figure in 2018 and are expected to retain its growth in the near future.

In value terms, dissolving wood pulp exports totaled $4.5B (IndexBox estimates) in 2018. Overall, dissolving wood pulp exports continue to indicate resilient growth. The pace of growth was the most pronounced in 2011 when exports increased by 32% year-to-year. Over the period under review, global dissolving wood pulp exports attained their maximum in 2018 and are expected to retain its growth in the near future.

Exports by Country

South Africa (948K tonnes), the U.S. (902K tonnes), Brazil (702K tonnes), Canada (522K tonnes) and Sweden (478K tonnes) represented roughly 77% of total exports of dissolving wood pulp in 2018. It was distantly followed by the Czech Republic (225K tonnes), committing a 4.9% share of total exports. Norway (143K tonnes) took a minor share of total exports.

From 2007 to 2018, the most notable rate of growth in terms of exports, amongst the main exporting countries, was attained by Brazil, while the other global leaders experienced more modest paces of growth.

In value terms, the largest dissolving wood pulp markets worldwide were the U.S. ($975M), Brazil ($766M) and South Africa ($754M), with a combined 56% share of global exports.

Brazil experienced the highest rates of growth with regard to exports, in terms of the main exporting countries over the last eleven-year period, while the other global leaders experienced more modest paces of growth.

Export Prices by Country

In 2018, the average dissolving wood pulp export price amounted to $964 per tonne, therefore, remained relatively stable against the previous year. Overall, the dissolving wood pulp export price, however, continues to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2011 an increase of 17% y-o-y. In that year, the average export prices for dissolving wood pulp attained their peak level of $1,237 per tonne. From 2012 to 2018, the growth in terms of the average export prices for dissolving wood pulp failed to regain its momentum.

There were significant differences in the average prices amongst the major exporting countries. In 2018, the country with the highest price was Norway ($1,274 per tonne), while South Africa ($795 per tonne) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by Brazil, while the other global leaders experienced more modest paces of growth.

Imports by Country

China represented the major importer of dissolving wood pulp in the world, with the volume of imports finishing at 3.1M tonnes, which was near 53% of total imports in 2018. India (634K tonnes) ranks second in terms of the total imports with a 11% share, followed by Indonesia (7.9%) and Germany (7.3%). Japan (162K tonnes), Thailand (158K tonnes), China, Macao SAR (142K tonnes) and Austria (87K tonnes) took a relatively small share of total imports.

Imports into China increased at an average annual rate of +17.3% from 2007 to 2018. At the same time, India (+18.2%), Indonesia (+11.4%), Austria (+7.5%), Japan (+6.6%), Thailand (+3.6%) and Germany (+2.3%) displayed positive paces of growth. Moreover, India emerged as the fastest-growing importer in the world, with a CAGR of +18.2% from 2007-2018. China, Macao SAR experienced a relatively flat trend pattern. From 2007 to 2018, the share of China, India, Indonesia, China, Macao SAR and Germany increased by +44%, +9.3%, +5.5%, +2.5% and +1.6% percentage points, while the shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, China ($3B) constitutes the largest market for imported dissolving wood pulp worldwide, comprising 54% of global imports. The second position in the ranking was occupied by India ($590M), with a 11% share of global imports. It was followed by Germany, with a 7.5% share.

In China, dissolving wood pulp imports increased at an average annual rate of +16.8% over the period from 2007-2018. The remaining importing countries recorded the following average annual rates of imports growth: India (+18.7% per year) and Germany (+2.4% per year).

Import Prices by Country

The average dissolving wood pulp import price stood at $962 per tonne in 2018, standing approx. at the previous year. Overall, the dissolving wood pulp import price continues to indicate a relatively flat trend pattern. The pace of growth was the most pronounced in 2011 when the average import price increased by 22% y-o-y. In that year, the average import prices for dissolving wood pulp attained their peak level of $1,286 per tonne. From 2012 to 2018, the growth in terms of the average import prices for dissolving wood pulp remained at a lower figure.

Prices varied noticeably by the country of destination; the country with the highest price was Japan ($1,149 per tonne), while China, Macao SAR ($509 per tonne) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by Thailand, while the other global leaders experienced more modest paces of growth.

Source: Index Box

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