The European market for tropical hardwood plywood faces numerous challenges. Sales prices of existing landed stocks are under pressure as consumption is slow in the winter season and, with the European economic situation so fragile, few importers are now expecting a significant rise in sales next year. However, rising production costs in the Far East mean that shippers either have to raise prices – currently very difficult in an unreceptive market – or to cut costs. Many are choosing the latter course and compromising on quality.
Continue reading “Very Challenging European Market for Tropical Hardwood Plywood – ITTO European Market Report 15th December 2011”European Economic Situation Deteriorates – ITTO European Market Report 30th November 2011
The economic outlook in Europe has deteriorated rapidly and alarmingly in recent weeks. The following quote from the latest edition of the Economist is typical of current media coverage in the region:
“First Greece; then Ireland and Portugal; then Italy and Spain. Month by month, the crisis in the euro area has crept from the vulnerable periphery of the currency zone towards its core, helped by denial, misdiagnosis and procrastination by the euro-zone’s policymakers. Recently Belgian and French government bonds have been in the financial markets’ bad books. Investors are even sniffy about German bonds.
Continue reading “European Economic Situation Deteriorates – ITTO European Market Report 30th November 2011”Eurozone Crises Severely Damages European Economic Sentiment – ITTO European Market Report 14th November 2011
The eurozone debt crises is having an increasingly malign influence on economic growth and sentiment across Europe. The eurozone itself is almost certainly back in recession, dashing hopes that it can grow its way out of trouble. In a forecast issued in the second week of November, the European Commission warns that “sharply deteriorating confidence and intensified financial turmoil are affecting investment and consumption, while urgent fiscal consolidation is weighing on domestic demand and weakening global economic conditions are holding back exports. The best Europe can look forward to is “a gradual and feeble return to growth” in the second half of next year, according to the Commission.
Continue reading “Eurozone Crises Severely Damages European Economic Sentiment – ITTO European Market Report 14th November 2011”Slow Recovery in EU Imports of Tropical Hardwood Logs – ITTO European Market Report 31st October 2011
During the first half of 2011, the EU imported 198,300 m3 of hardwood logs from tropical countries, a 5% increase compared to the same period in 2010. As commercially valuable logs can no longer be exported from Gabon, EU imports from all the other main producing countries in the Congo region increased dramatically during the 6 month period (Table 1).
Continue reading “Slow Recovery in EU Imports of Tropical Hardwood Logs – ITTO European Market Report 31st October 2011”EU Imports of Tropical Lumber Remain Low but Consistent – ITTO European Market Report 15th October 2011
Table 1 shows imports of hardwood lumber into the EU-25 group of countries during the January to June 2011 period. Overall imports are up only slightly compared to the same period in 2010, with most of the growth in temperate hardwood, particularly from the countries of former Yugoslavia. These countries are capable of supplying high quality oak, a timber which has consolidated its hugely dominant position in the European market this year.
Continue reading “EU Imports of Tropical Lumber Remain Low but Consistent – ITTO European Market Report 15th October 2011”Russia drives rise in EU hardwood plywood imports during the first half of 2011 – ITTO European Market Report 30th September 2011
At 630,000 m3, EU hardwood plywood imports in the second quarter of 2011 were up 12% on the previous quarter and up 9% on the same quarter of the previous year (Chart 1). Imports during the second quarter of 2011 were at levels not seen since before the onset of the economic crises in 2008. Imports over the first 6 months of 2011 stood at 1.2 million m3, up 12% on the same period in 2010.
Continue reading “Russia drives rise in EU hardwood plywood imports during the first half of 2011 – ITTO European Market Report 30th September 2011”Diversification in Europe’s Wood Product Imports – ITTO European Market Report 15th September 2011
There is a tendency when analysing markets for tropical wood in Europe to focus heavily on demand for the main primary wood products –tropical hardwood logs, sawn, veneers and plywood. However globalisation trends, particularly the strong growth of China as a wood processing hub, combined with efforts by tropical producing countries to move up the value chain, has meant that these products have become relatively less important in the European market. Tropical and other developing countries are supplying a very wide range of secondary and tertiary processed products into this market.
Continue reading “Diversification in Europe’s Wood Product Imports – ITTO European Market Report 15th September 2011”Caution Prevails After the Summer Vacation – ITTO European Market Report 31st August 2011
As usual during Europe’s lengthy summer vacation period, there has been a slowdown in tropical hardwood trading. Importers in many parts of Europe suggest that overall trade during the first half of 2011, while unspectacular, was an improvement on the same period the previous year. However, the volumes involved were well down on levels prevailing before the recession and there is little expectation of any significant upturn when buyers return at the end of August. On-going concerns about the debt crises in the euro-zone and government austerity measures has contributed to a general feeling of uncertainty about the future direction of demand and raised the spectre of volatile exchange rates. Nor has the long-term problem of limited access to credit amongst importers been resolved.
Continue reading “Caution Prevails After the Summer Vacation – ITTO European Market Report 31st August 2011”European Domestic Hardwood Production Rebounds – ITTO European Market Report 31st July 2011
Data from the UNECE Timber Committee indicates that hardwood production across the European subregion rebounded during 2010 (the UNECE European subregion includes all countries within the continent of Europe plus Turkey but excluding Russia). Following an 18% decline in hardwood saw and veneer log production in the region between 2007 and 2009 to 29.7 million m3, production rebounded by 12% to 33.2 million m3 in 2010 (Chart 1). Significant increases in hardwood log production were recorded in Romania, Germany, Turkey, and Latvia during 2010. 26.2 million m3 (78%) of total European hardwood log production during 2010 was in EU countries.
Continue reading “European Domestic Hardwood Production Rebounds – ITTO European Market Report 31st July 2011”European Market for Tropical Wood Quiet But Stable – ITTO European Market Report 15th July 2011
The European market for tropical hardwood lumber is quiet but relatively stable. Uncertainty about future demand has meant that speculative purchasing is being kept to a minimum. Overall European stocks of lumber of the most popular species such as meranti, bankirai, sapele, sipo, and wawa remain at historically low levels. However with slow consumption this has not led to reports of significant supply problems. Orders are being placed to replace stocks as and when gaps open up.
Continue reading “European Market for Tropical Wood Quiet But Stable – ITTO European Market Report 15th July 2011”