Category: ITTO Market Reports

For the last 5 years, the Eurostat construction production index for both the EU27 and euro-area group of countries has fallen consistently, with only an occasional short-lived reversal (see figure 1 below).  In the first quarter of this year, EU-27 construction activity reached new lows. The index during the January-March 2013 period was down 5.2% compared to the same quarter in 2012, and down 2.8% compared to the previous quarter.

Continue reading “EU Construction Activity Continues to Fall – ITTO European Market Report 15th May 2013”

The month of March 2013 is likely to be remembered as a major turning point for the European wood industry. Not only did it mark the introduction of the EU Timber Regulation (EUTR), but it also brought extremely bad economic news. Some newspapers and economists are now talking in terms of a “depression” in Europe. The fragile optimism of the opening weeks of the year has been dashed amid emerging signs that the recession is far from over.

Continue reading “Talk of Economic Depression as Early Optimism Dashed – ITTO European Market Report 15th April 2013”

In 2012, wooden floor consumption in Europe (excluding the UK) is estimated at 91 million m², a 4% decline compared to the previous year. Last’s years decline is a reversal of the trend in 2011 when there was a brief revival in European parquet consumption following a sharp fall in consumption following the financial crises between 2008 and 2010.

Continue reading “European Wood Flooring Consumption Down 4% in 2012 – ITTO European Market Report 15th March 2013”

Prospects for the European economy seem more positive now than this time last year. The worst fears of a destructive “domino effect” that might have resulted from Greece or another country being forced out of the euro-zone have failed to materialise. The effects of the financial crises were largely contained within the most afflicted economies of southern Europe. The countries of central and north-western Europe, while experiencing higher than normal levels of economic volatility, have so far managed to weather the storm. Their relative stability has prevented the effects of the financial crises from trickling down throughout Europe. In recent months, several economic indicators in the EU, such as the Economic Sentiment Indicator and the Construction Confidence Index, have improved (see Charts 1 and 2). There is cautious optimism that economic reforms in the most troubled EU countries are beginning to work.

Continue reading “Confidence in European Economy Improves – ITTO European Market Report 15th February 2013”

Hopes of a speedy recovery for the European construction industry have been dashed. Forecasts issued at the latest Euroconstruct meeting held in Munich during December 2012 suggest that the euro crises is continuing to hold European construction activity in check. Activity is being curbed by high unemployment, stagnant economic growth or even economic downturns in many places, as well as the strained financial situation of the public sector.

Continue reading “No End in Sight to Recession in European Construction Sector – ITTO European Market Report 15th January 2013”

The European plywood market is undergoing a rapid period of change. Since the start of recession in 2008, the market has become less and less willing to pay premium prices for tropical hardwood plywood. Instead it has opted for plywood manufactured in alternative hardwood species. The emergence of China as a major supplier of large volumes of hardwood plywood at competitive prices played an important role to drive this change. Now the market looks set to alter again. This time the main driver is likely to be the EU Timber Regulation (EUTR), to be enforced from March 2013. EUTR will require that EU importers have access to documents demonstrating negligible risk of any wood product coming from an illegal source. This will present challenges for suppliers of wood products that rely on long and complex supply chains – such as many Chinese plywood manufacturers.

Continue reading “European Plywood Market Undergoing Rapid Change – ITTO European Market Report 15th December 2012”

1. Key business sentiment indicators

Drawing on Eurostat data, the four charts below provide a snapshot of recent trends in market sectors important to the European wood industry. Data is provided for the EU as a whole and for the seven EU countries that are the largest individual markets for Chinese wood products in Europe.   Overall, they indicate low levels of business confidence and particularly weak activity in the European construction sector. However there are some signs of recent improvements in business confidence in a few EU Member States in September and October 2012.

Continue reading “ITTO European Market Report 15th November 2012”

In 2007, prior to the economic crises in Europe, the EU as a whole contributed 22% of the value of all global imports of timber products (Chart 1). As such, it was the world’s largest single importer of timber. Since then, the EU has declined in relative importance, in 2011 accounting for 17% of global wood imports, and is now a smaller importer than China (which in 2011 accounted for 19% of global timber imports). The relative decline is associated both with the rising importance of China as a consumer and manufacturer of timber products and with the dramatic decline in European consumption in response to broader economic trends. Nevertheless, Europe maintains a prominent position in the global wood trade, not only because of trade volume, but also due to the leading role of European retailers, manufacturers, designers and brands in wood product innovation, design and marketing, and of European policy makers in setting of technical and environmental standards.

Continue reading “EU in International Trade – ITTO European Market Report 15th October 2012”

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”

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”