IndexBox has just published a new report: ‘U.S. Pulp Market. Analysis And Forecast to 2025’. Here is a summary of the report’s key findings.

The revenue of the pulp market in the U.S. amounted to $4.8B in 2018, going up by 9% 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 +2.5% from 2013 to 2018; the trend pattern remained relatively stable, with somewhat noticeable fluctuations throughout the analyzed period. The pace of growth was the most pronounced in 2014 with an increase of 19% against the previous year. In that year, the pulp market attained its peak level of $5.1B. From 2015 to 2018, the growth of the pulp market remained at a lower figure.

Pulp Production in the U.S.

In value terms, pulp production totaled $7.2B in 2018. Overall, pulp production, however, continues to indicate a relatively flat trend pattern. The growth pace was the most rapid in 2014 with an increase of 8.9% year-to-year. In that year, pulp production reached its peak level of $7.7B. From 2015 to 2018, pulp production growth failed to regain its momentum.

Exports from the U.S.

In 2018, approx. 6M tonnes of pulp were exported from the U.S.; going down by -4.7% against the previous year. Over the period under review, pulp exports continue to indicate a mild shrinkage. The growth pace was the most rapid in 2015 with an increase of 3.1% against the previous year. Exports peaked at 6.4M tonnes in 2013; however, from 2014 to 2018, exports remained at a lower figure.

In value terms, pulp exports amounted to $4.5B (IndexBox estimates) in 2018. The total export value increased at an average annual rate of +1.7% from 2013 to 2018; the trend pattern remained relatively stable, with only minor fluctuations being observed over the period under review. The growth pace was the most rapid in 2018 when exports increased by 11% against the previous year. In that year, pulp exports reached their peak and are likely to continue its growth in the immediate term.

Exports by Country

China (1.6M tonnes) was the main destination for pulp exports from the U.S., with a 26% share of total exports. Moreover, pulp exports to China exceeded the volume sent to the second major destination, Japan (479K tonnes), threefold. The third position in this ranking was occupied by Italy (391K tonnes), with a 6.6% share.

From 2013 to 2018, the average annual rate of growth in terms of volume to China stood at -3.2%. Exports to the other major destinations recorded the following average annual rates of exports growth: Japan (+3.1% per year) and Italy (-3.4% per year).

In value terms, China ($1.2B) remains the key foreign market for pulp exports from the U.S., comprising 26% of total pulp exports. The second position in the ranking was occupied by Japan ($410M), with a 9.1% share of total exports. It was followed by Italy, with a 6.3% share.

From 2013 to 2018, the average annual growth rate of value to China amounted to +1.0%. Exports to the other major destinations recorded the following average annual rates of exports growth: Japan (+6.9% per year) and Italy (-1.5% per year).

Export Prices by Country

In 2018, the average pulp export price amounted to $759 per tonne, going up by 16% against the previous year. Over the period from 2013 to 2018, it increased at an average annual rate of +3.1%. The growth pace was the most rapid in 2018 an increase of 16% against the previous year. In that year, the average export prices for pulp reached their peak level and is likely to continue its growth in the immediate term.

Prices varied noticeably by the country of destination; the country with the highest price was Japan ($855 per tonne), while the average price for exports to Germany ($554 per tonne) was amongst the lowest.

From 2013 to 2018, the most notable rate of growth in terms of prices was recorded for supplies to South Korea, while the prices for the other major destinations experienced more modest paces of growth.

Imports into the U.S.

In 2018, the amount of pulp imported into the U.S. totaled 2.5M tonnes, increasing by 4.2% against the previous year. The total import volume increased at an average annual rate of +3.5% from 2013 to 2018; the trend pattern remained relatively stable, with somewhat noticeable fluctuations being recorded in certain years. The pace of growth appeared the most rapid in 2018 when imports increased by 4.2% year-to-year. In that year, pulp imports reached their peak and are likely to continue its growth in the immediate term.

In value terms, pulp imports totaled $1.5B (IndexBox estimates) in 2018. The total import value increased at an average annual rate of +4.8% over the period from 2013 to 2018; the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2018 with an increase of 23% year-to-year. In that year, pulp imports attained their peak and are likely to continue its growth in the immediate term.

Imports by Country

In 2018, Brazil (2.1M tonnes) constituted the largest pulp supplier to the U.S., accounting for a 85% share of total imports. Moreover, pulp imports from Brazil exceeded the figures recorded by the second-largest supplier, Chile (248K tonnes), ninefold.

From 2013 to 2018, the average annual rate of growth in terms of volume from Brazil amounted to +1.7%. The remaining supplying countries recorded the following average annual rates of imports growth: Chile (+20.8% per year) and Sweden (+19.7% per year).

In value terms, Brazil ($1.4B) constituted the largest supplier of pulp to the U.S., comprising 90% of total pulp imports. The second position in the ranking was occupied by Chile ($75M), with a 4.8% share of total imports.

From 2013 to 2018, the average annual growth rate of value from Brazil totaled +4.0%. The remaining supplying countries recorded the following average annual rates of imports growth: Chile (+16.9% per year) and Sweden (+14.9% per year).

Import Prices by Country

The average pulp import price stood at $619 per tonne in 2018, growing by 18% against the previous year. Over the period from 2013 to 2018, it increased at an average annual rate of +1.2%. The pace of growth appeared the most rapid in 2018 an increase of 18% y-o-y. In that year, the average import prices for pulp reached their peak level and is likely to continue its growth in the immediate term.

There were significant differences in the average prices amongst the major supplying countries. In 2018, the country with the highest price was Brazil ($655 per tonne), while the price for Chile ($300 per tonne) was amongst the lowest.

From 2013 to 2018, the most notable rate of growth in terms of prices was attained by Brazil, while the prices for the other major suppliers experienced a decline.

Companies Mentioned in the Report

Profile Products, Domtar Industries, Georgia-Pacific Brewton, Woodland Pulp, Cascade Pacific Pulp, Northwest Capital Appreciation, Forest Resolute Products, American Paper Recycling, Cascades Tissue Group-Oregon, A Division of Cascades Holding US, Parsons & Whittemore, St Paper, Alabama River Cellulose, Buckeye Technologies, Brunswick Cellulose, Parsons & Whittemore Enterprises, Fibrek Inc., Port Townsend Holdings Company, Buckeye Mt. Holly, Lest Distributors, Southern Cellulose Products, DOMTAR A.W., Alabama River Group, GP Cellulose, Buckeye Florida Limited Partnership, Pratt Paper (ny), Fibrek Recycling U.S. , Cosmo Specialty Fibers, Ox Paperboard

Source: IndexBox AI Platform