Forest Industries Intelligence
Informing the Sustainable Wood Industry Since 1998
The import value of tropical wood and wood furniture into the UK in the opening eight months of this year was USD1.06B, 21% more than the same period last year. Following the strongest start to the year in terms of UK import value since before the 2008 financial crises, imports fell sharply during July and August (Chart 1).
The most recent EU27 trade data to end July this year shows that imports of tropical wood and wood furniture products were still at historically high levels in the early summer months this year. However, imports were slowing from the peak reached in May. Now, as Europe moves into the winter months there are ominous signs of recession ahead, particularly as the war in Ukraine is contributing to huge increases in energy prices and business and consumer confidence is being hit by expectations of higher interest rates to control inflation.
UK imports of hardwood products were rising strongly both in volume and value terms during the second half of 2021 and first half of this year as importers were building stocks on a rising market. However, in the third quarter this year the market has changed dramatically as import prices have fallen and UK importers are sitting on a lot of wood bought earlier at higher prices. This has occurred just at a time when consumption has weakened as the UK heads into recession and the GBP has fallen to the weakest ever level against the USD and is also declining against the EUR.
After the dislocation caused by the COVID-19 pandemic, the performance of the EU27 wood joinery sector was transformed in 2021. The main long-term trends in previous years were a continuous increase in joinery production in Germany offsetting a large decline in Italy and wood’s loss of share to other materials – particularly plastics – in windows and doors manufacturing. However, 2021 saw a sharp revival in wood joinery activity across the continent. Following three years of stagnation, production value of wood joinery and related products in the EU27 increased 16% to €38.22 billion in 2021. Last year, in value terms, total wood joinery activity across the EU27 was at the highest since before the 2008 financial crises (Chart 1).
Between April and June this year, EU27 import value of tropical wood and wood furniture products was, in dollar terms, at the highest quarterly level since at least before the 2007-2008 financial crisis (Chart 1). Imports of USD1.27B during the second quarter of 2022 were 11% more than the previous quarter and 25% more than the same quarter the previous year.
The import value of tropical wood and wood furniture into the UK in the opening five months of this year was USD711 million, 34% more than the same period last year. In fact, this was by far the strongest start to the year in terms of UK import value of tropical wood and wood furniture products since at least before the 2008 financial crises (Chart 1). It compares to an average import value of less than USD500 million for the January to May period throughout the whole decade prior to the onset of the pandemic in 2020.
The last two and half years, marked from the start of 2020 by the Covid-19 pandemic and from February this year by war in Ukraine, have seen unprecedented changes in Europe’s wood furniture sector. The sector has passed through a period characterised by an initial but very short lived fall in demand in the second quarter of 2020, followed by rapid demand escalation at a time when material shortages and other logistical challenges greatly reduced availability. During this relatively short period, major changes have occurred in patterns of supply and demand, trade flows, consumer preferences and working conditions, distribution channels, design, and fashion trends. Companies throughout the sector are having to evolve new strategies in response to a transformed world.
In the first four months of this year, the value of EU imports of tropical wood and wood furniture totalled USD1.23 billion, a gain of 28% compared to the same period last year. In terms of value, this was by far the highest level of trade for the four month period in the last five years (Chart 1). In fact trade value was at a level not seen since before the 2008-2009 financial crises. Continue reading “EU27 Tropical Wood Import Value Increases On The Back Of High Prices. ITTO European Market Report 15th July 2022”
According to the European Sawmiller Organisation (EOS), production of sawn hardwood in Europe was significantly impacted by the coronavirus crisis in 2020 with a strong decline particularly in France and Germany. Overall sawn hardwood production declined from around 6 million m3 in 2019 to just above 5.5 million m3 in 2020. Continue reading “European Sawn Hardwood Production At Highest Level Since 2008. ITTO European Market Report 15th June 2022”
In the first three months of this year, the value of EU imports of tropical wood and wood furniture was at a level not seen for over a decade. Import value was USD1.05 billion in the first quarter, a gain of 22% compared to the same period last year. It was also 16% up on the last quarter in 2021 when trade was already at a decadal high for that period of the year (Chart 1).