Category: 2019

At the time of the last update on the European plywood market (ITTO TTMR Volume 23 Number 16, 16 -31 August 2019), the sector was experiencing a tightening market and competitive conditions. In the intervening four months, according to leading importers, not a lot has changed.  

To rebuild share in the European market, the tropical wood sector must exploit emerging opportunities from the synergies between the FLEGT VPA process and private sector forest certification initiatives, and to focus relentlessly on communicating simple messages to target audiences of architects, designers and civil engineers on the carbon mitigation and forest conservation benefits of using sustainable tropical timber. 

The EU’s trade in tropical wood products was more buoyant in the first nine of months of 2019 than the same period in 2018. However, the rise in imports, which began in the second quarter of 2018, has levelled off since June this year. 

After a reasonable start to the year, UK tropical timber importers report a marked slowdown in business in recent months which they attribute to market nerves surrounding the country’s still unresolved future relationship with the EU.

The Netherlands has traditionally played an important role as a driver of tropical timber demand in the EU. In addition to relatively large timber consumption for water protection works, and a long-term preference for Asian meranti for window frames, the Netherlands acts as a hub for distribution of tropical wood products to other parts of the EU. The Dutch government and private sector have also been influential in development of environmental procurement practices throughout the continent. 

The EU’s trade in tropical wood products was more buoyant in the first half of this year compared to the same period in 2018. Total imports of all wood products (classified in HS Chapter 44) from tropical countries in the first half of 2019 were 1.24 million metric tonnes (MT), 16% more than the same period in 2018. Import value increased 15% to €1.26 billion. 

Total imports of real-wood flooring into the EU increased 6.2% to 29.52 million m² in 2018. Tropical countries accounted for only 9.2% of total imports in 2018, down from 11.1% the previous year and close to 50% before the financial crises. After nearly two decades of almost continuous decline, the real-wood flooring sector in the EU is now a negligible market for VPA partner timber products (Chart 1).

As the year has progressed, the European plywood sector has become increasingly depressed. That’s the consensus among a number of leading importers and distributors. 

The EU wood joinery sector continued to grow only very slowly in 2018, well below the pace of increase in the wider construction sector. While joinery production and consumption gained momentum in Germany, Austria, Spain, the Netherlands and Belgium last year, it remained subdued in Italy, the UK, France and Scandinavia. 

The uncertainty surrounding Brexit may be casting a shadow over the UK market. However, the wider EU hardwood sector reports generally steady, in some cases strong trading in 2019 to date including in tropical timber, despite some slowdown in economic activity and increased downside concerns about the medium-term outlook.