The EU Dissolving Grade Wood Pulp Market Lost Growth Momentum

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

The revenue of the dissolving grade wood pulp market in the European Union amounted to $1.6B in 2018, waning by -5.6% 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 +2.7% from 2007 to 2018; however, the trend pattern indicated some noticeable fluctuations being recorded over the period under review. Over the period under review, the dissolving grade wood pulp market attained its peak figure level at $1.7B in 2017, and then declined slightly in the following year.

Consumption by Country

The countries with the highest volumes of dissolving grade wood pulp consumption in 2018 were Austria (334K tons), Germany (320K tons) and Finland (264K tons), with a combined 57% share of total consumption. These countries were followed by Sweden, Poland, the Netherlands, France and Belgium, which together accounted for a further 32%.

From 2007 to 2018, the most notable rate of growth in terms of dissolving grade wood pulp consumption, amongst the main consuming countries, was attained by Belgium (+55.4% per year), while dissolving grade wood pulp consumption for the other leaders experienced more modest paces of growth.

In value terms, Germany ($389M), Austria ($252M) and Finland ($239M) appeared to be the countries with the highest levels of market value in 2018, together accounting for 56% of the total market. These countries were followed by Sweden, Poland, the Netherlands, France and Belgium, which together accounted for a further 32%.

The countries with the highest levels of dissolving grade wood pulp per capita consumption in 2018 were Finland (48 kg per person), Austria (38 kg per person) and Sweden (19 kg per person).

Production in the EU

In 2018, approx. 2M tons of dissolving grade wood pulp were produced in the European Union; shrinking by -4.1% against the previous year. Overall, dissolving grade wood pulp production, however, continues to indicate a buoyant increase. The most prominent rate of growth was recorded in 2013 when production volume increased by 40% against the previous year. The volume of dissolving grade wood pulp production peaked at 2.1M tons in 2017, and then declined slightly in the following year.

Production by Country

The countries with the highest volumes of dissolving grade wood pulp production in 2018 were Sweden (478K tons), Austria (456K tons) and Finland (400K tons), together accounting for 67% of total production. The Czech Republic, Poland, Portugal and France lagged somewhat behind, together accounting for a further 29%.

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

Exports in the EU

The exports stood at 1.1M tons in 2018, stabilizing at the previous year. Overall, dissolving grade wood pulp exports continue to indicate a prominent increase. The volume of exports peaked at 1.3M tons in 2014; however, from 2015 to 2018, exports stood at a somewhat lower figure. In value terms, dissolving grade wood pulp exports totaled $1B (IndexBox estimates) in 2018.

Exports by Country

In 2018, Sweden (310K tons) and the Czech Republic (264K tons) were the major exporters of dissolving grade wood pulp in the European Union, together committing 52% of total exports. Austria (168K tons) occupied the next position in the ranking, followed by Finland (143K tons), Portugal (101K tons) and France (64K tons). All these countries together held near 43% share of total exports. Spain (24K tons) took a little 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 Austria, while exports for the other leaders experienced more modest paces of growth.

In value terms, the largest dissolving grade wood pulp supplying countries in the European Union were Sweden ($297M), the Czech Republic ($242M) and Finland ($120M), together comprising 65% of total exports. Austria, Portugal, France and Spain lagged somewhat behind, together comprising a further 31%.

Export Prices by Country

In 2018, the dissolving grade wood pulp export price in the European Union amounted to $922 per ton, declining by -1.7% against the previous year. Overall, the dissolving grade wood pulp export price continues to indicate a relatively flat trend pattern.

Prices varied noticeably by the country of origin; the country with the highest price was France ($1,372 per ton), while Austria ($678 per ton) was amongst the lowest.

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

Imports in the EU

In 2018, the imports of dissolving grade wood pulp in the European Union totaled 715K tons, going down by -1.7% against the previous year. Over the period under review, dissolving grade wood pulp imports continue to indicate a relatively flat trend pattern. In value terms, dissolving grade wood pulp imports stood at $803M (IndexBox estimates) in 2018.

Imports by Country

Germany represented the largest importer of dissolving grade wood pulp imported in the European Union, with the volume of imports recording 333K tons, which was approx. 47% of total imports in 2018. It was distantly followed by the Netherlands (79K tons), Belgium (70K tons), Austria (46K tons), the UK (46K tons), Ireland (36K tons) and France (34K tons), together mixing up a 43% share of total imports.

Germany experienced a relatively flat trend pattern with regard to volume of imports of dissolving grade wood pulp imports. At the same time, the Netherlands (+5.0%), France (+4.2%), Ireland (+2.8%) and Austria (+1.5%) displayed positive paces of growth. Moreover, the Netherlands emerged as the fastest-growing importer imported in the European Union, with a CAGR of +5.0% from 2007-2018. By contrast, Belgium (-2.2%) and the UK (-7.9%) illustrated a downward trend over the same period. From 2007 to 2018, the share of the Netherlands and France increased by +4.6% and +1.7% percentage points, while Belgium (-2.7 p.p.) and the UK (-9.4 p.p.) saw their share reduced. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Germany ($413M) constitutes the largest market for imported dissolving grade wood pulp in the European Union, comprising 51% of total dissolving grade wood pulp imports. The second position in the ranking was occupied by Belgium ($73M), with a 9.1% share of total imports. It was followed by the Netherlands, with a 8.8% share.

Import Prices by Country

In 2018, the dissolving grade wood pulp import price in the European Union amounted to $1,122 per ton, increasing by 2% against the previous year. Over the period from 2007 to 2018, it increased at an average annual rate of +1.3%. The pace of growth was the most pronounced in 2010 when the import price increased by 24% y-o-y. The level of import price peaked at $1,434 per ton in 2011; however, from 2012 to 2018, import prices stood at a somewhat lower figure.

There were significant differences in the average prices amongst the major importing countries. In 2018, the country with the highest price was Germany ($1,240 per ton), while Austria ($795 per ton) was amongst the lowest.

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

Source: IndexBox Market Intelligence Platform