HS Code:
Pulpwood, classified under HS Code 4403, refers to wood in the rough, whether or not stripped of bark or sapwood, or roughly squared, primarily used for the production of wood pulp for paper manufacturing. This category includes logs, billets, and other forms of unprocessed wood destined for pulp mills. Pulpwood is a critical raw material in the global paper and packaging industry, with demand driven by the need for sustainable and recyclable materials. Trade in pulpwood is influenced by regional availability of timber, environmental regulations, and the proximity of pulp processing facilities.
Total Trade Volume
Approximately $12.5 billion USD
Data from 2022
Source
United Nations Comtrade Database and International Trade Centre (ITC)
$3.2 billion USD
25.6% of total trade of total trade
Increasing
$2.8 billion USD
22.4% of total trade of total trade
Stable
$1.5 billion USD
12.0% of total trade of total trade
Increasing
$1.3 billion USD
10.4% of total trade of total trade
Stable
$1.0 billion USD
8.0% of total trade of total trade
Decreasing
Average Rate
3.5% ad valorem
Highest Rate
10% (applied by certain developing countries to protect domestic industries)
Lowest Rate
0% (under free trade agreements such as NAFTA/USMCA and EU trade pacts)
Rising demand for sustainable packaging
Increased demand for pulpwood as a raw material for eco-friendly paper and cardboard products, especially in e-commerce sectors.
2021-2023
Shift to digital media reducing traditional paper demand
Slight decline in pulpwood trade for newsprint and printing paper, offset by growth in packaging and tissue paper sectors.
2019-2022
Stricter environmental regulations
Countries with sustainable forestry practices (e.g., Nordic countries) gain competitive advantage, while others face export restrictions.
2020-2023
The European Union implemented stricter rules under the EUDR, requiring pulpwood importers to prove that products are not linked to deforestation.
June 2023
Increased compliance costs for exporters, potential reduction in trade from non-compliant regions, and a push towards certified sustainable sources.
Ongoing trade disputes have led to rerouting of pulpwood exports, with US exporters seeking alternative markets in Southeast Asia.
Mid-2022
Shift in trade patterns, with increased shipping costs and market uncertainty for US pulpwood exporters.
Sanctions on Russian timber exports and disrupted supply chains in Eastern Europe have reduced pulpwood availability in certain markets.
February 2022 onwards
Price volatility and increased reliance on North American and Nordic suppliers to fill the gap in European markets.