Global Wood Chip Trade Rises in 2010 after Sharp 2009 Decline

The international financial crisis in 2009 had a major negative impact on world wide demand for pulp and paper products. As a result, the consumption of wood chips and pulpwood for pulp production was lower, and global trade of wood chips fell, according to a report issued this week by Wood Resources International (WRI), Seattle, Wash., USA. However, WRI notes that in 2010 pulp markets improved and global shipments of wood chips were up substantially.

Wood chip trade had increased on average 5% per year between 2002 and 2008, reaching an all-time high of approximately 33 million tons in 2008. This upward trend was broken in 2009, when trade fell 17% from the previous year. In 2010, wood chip shipment volumes went up by 25% to reach a new high. This was primarily due to a substantial increase in demand for wood chips in China, as reported in the latest issue of WRI's Wood Resource Quarterly (WRQ).

China has evolved from being a net exporter of chips five years ago to being a major chip consumer, having quadrupled imports in just two years, WRI points out. The country now imports more than 28% of all chips traded in the Pacific Rim and is the world's second largest importer of wood chips after Japan.

Trade of wood chips is still the highest in the Pacific Rim, accounting for almost 60% of the total global trade and more than 95% of water-born trade. The major exporting countries in 2010 have not changed much from previous years, with Australia being the biggest exporter followed by Chile, Vietnam, the U.S., and Thailand. These five countries together export just over 19 million tons, or 22% more than the previous year, according to the WRQ. A majority of the shipments are Eucalyptus wood chips destined for pulp mills in Japan and China.

Trade of wood chips is likely to increase in 2011 as the global economy slowly recovers, and as a consequence, the demand for most forest products will improve. In addition, many energy companies in Europe are searching for new sources of biomass, which will further expand the overseas trade of wood chips, biomass chips, and wood pellets, WRI explains.

More information is available online.

TAPPI
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