Category: 2017

European consumption of real wood flooring (i.e. excluding laminates) remains flat and the role of tropical timber in this sector is declining. This is apparent from combined analysis of Eurostat trade data and the latest market report by the FEP (European Federation of the Parquet Industry) released on 16 June 2017 at the Federation’s annual general meeting in Budapest, Hungary.

After making gains last year, EU imports of tropical veneer have continued to rise in 2017, hitting 40,000 metric tonnes (MT) in the first quarter, a 15% increase compared to the same period in 2016. As in 2016, most gains were in imports from Gabon, which increased 28% to 21,700 MT in the first quarter of 2017. EU veneer imports also increased from several smaller supplying countries including Congo (+18% to 2,900 MT), DRC (+187% to 1,400 MT) and Equatorial Guinea (+45% to 1,400 MT). However, imports declined from Côte d’Ivoire (-19% to 6,600 MT), Cameroon (-1% to 3,000 MT), and Ghana (-12% to 1,500 MT). (Chart 1).

The slowdown in EU imports of tropical timber products registered in the second half of 2016 continued into the first quarter of 2017. Twelve monthly rolling average imports, which peaked at just below €196 million in June 2016, had slipped to €193 million by March 2017. Most of the rise and subsequent slowdown in EU tropical imports in the 24 months prior to 2017 was driven by sawn wood. Imports of other product groups remained relatively more stable during this period (Chart 1).

Demand for wood furniture in the EU is rising slowly but the signs are not very positive for external suppliers into the region, particularly from the tropics.

The EU renewed anti-dumping duties on imports of okoumé plywood manufactured in China on 7^th April. These duties were originally introduced by the EU in 2004 and would have lapsed after only five years had not an interested party requested the European Commission (EC) to initiate an expiry review. In 2009, the European Panel Federation (EPF) requested a review which led the EU to extend the duties for another 5 years from January 2011. Near the end of that period, in October 2015, the EPF once again requested that the EC initiate an expiry review. This new investigation led to the announcement of another 5-year extension from April 2017.

Indonesia issued the first ever FLEGT licenses in mid-November last year with high expectations that these would boost the value and share of Indonesia’s wood exports to the EU. This is a reasonable expectation, given the very significant commitment and investment by Indonesia, supported through the FLEGT Voluntary Partnership Agreement with the EU, and the mandatory requirement that all timber and timber products exported from Indonesia to the EU must now be licensed.

The upturn in EU imports of hardwood veneer which began in 2013 continued last year. The EU imported 542,000 m³ of hardwood veneer from outside the region in 2016, 12% more than in 2015. Imports from the tropics increased 10% to 313,400 m³, exceeding 300,000 m³ for the first time since 2011. However, EU imports of tropical veneer are still well below volumes of over 400,000 m³ per annum prevailing before the financial crises (Chart 1).

In 2016, EU imports of tropical sawn hardwood were 1.04 million m3, unchanged from the previous year. The value of EU imports increased by 2% to €775 million. The average unit value of tropical sawn hardwood imports into the EU in 2016 was €747 per cubic meter, up from €730 per cubic meter the previous year.

To end years of decline in UK hardwood consumption, a radical step change is required to improve two-way communication between the hardwood trade and key end-user and specifier groups, including product designers, architects, manufacturers, building contractors and retailers.

The total value of EU imports of wood products was Euro 17.48 billion in 2016, 1.3% more than in 2015. This followed an increase of 12% to  Euro 17.25 billion in 2015. In 2016 EU import value was at the highest level since 2008 just before the global financial crises (Chart 1).