{"id":77165,"date":"2019-02-25T12:55:16","date_gmt":"2019-02-25T12:55:16","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/eu-plywood-importers-face-risk-oversupply\/"},"modified":"2025-09-19T08:50:01","modified_gmt":"2025-09-19T08:50:01","slug":"eu-plywood-importers-face-risk-oversupply","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/eu-plywood-importers-face-risk-oversupply\/","title":{"rendered":"EU plywood importers face the risk of oversupply"},"content":{"rendered":"

EU plywood importers report that in the latter part of the year, the plywood market started to turn around and become more volatile.<\/em><\/p>\n

\u201cWe saw the Turkish economy slow dramatically, with construction particularly hard hit, and several of their big name companies seeking court bankruptcy protection,\u201d said a continental importer. \u201cAs a result Russian birch ply, in particular, that would have been destined for Turkey, was pushed into other markets, including Germany.<\/p>\n

\u201cAt the same time, the Middle East started to slow down. Following the buoyant international market in the first half of the year, however, plywood production was still high and given an added boost by rising availability of logs in China, Indonesia and Malaysia,\u201d said another plywood specialist European imports also initially remained strong, they added, with contributory factors including importers placing big orders for the next duty-free quota.<\/span><\/p>\n

The eventual outcome of the combination of high output and falling international market demand was prices, in the words of one company representative, going into a downward spiral. \u201cAnd due to the strengthening dollar, dollar-based suppliers had to cut particularly deep to remain competitive,\u201d he said.<\/p>\n

This, he added, left importers holding substantial expensive stocks and facing the dilemma of whether and by how much to discount them to compete with falling current and forward import prices. Brazilian softwood plywood recorded a particularly sharp fall in prices.<\/p>\n

\u201cOver six months the price fell between 30% and 40%,\u201d said a European distributor. \u201cStandard Brazilian 20mm elliottis, for instance which had been $310m3 last April went down to $225m3, or even less. After five or six years of good growth, the Brazilian industry has also built up a lot of capacity, which could undermine prices still further.\u201d<\/p>\n

Russian plywood production was temporarily affected late last year by unseasonably warm weather delaying the start of logging, but it is also reported to be back to full production.<\/p>\n

\u201cThe result is that Russian mills have been cutting prices too,\u201d said an importer.<\/p>\n

A UK company echoed the comments of continental counterparts. \u201cAfter rising quickly in the first half of 2018 in line with demand, prices on Brazilian pine and Malaysian ply have tumbled,\u201d they said. \u201cBrazilian is about $100m3 lower and Malaysian around $50 from its high, or 10% FOB. Chinese is likely to rise by 4% after the Chinese New Year, but currently it is 8% lower.\u201d<\/p>\n

Another importer distributor reported that Indonesian plywood prices had also fallen a few per cent in the last two to three months, possibly due to weaker exports and cheaper logs.<\/p>\n

\u201cFor Indonesian film-faced shuttering plywood prices are also badly affected by cheap offers of Russian film-faced, resulting in demand for Indonesian \u2013benchmark 18\/21mm\u2013 being at probably its lowest point for years,\u201d they said. \u201cMalaysian prices are a few per cent lower too in spite of stable cost prices and some mills are consequently increasing their use of rubberwood to compensate.\u201d<\/p>\n

While there wasn\u2019t complete consensus on the topic, freight rates, which had been firm, were also expected by some to flatten and fall, reflecting more competitive conditions. \u201cBrazilian rates have already declined as less is being shipped to the UK due to stocks now being so high and Far East freight should also trend down,\u201d said an importer. Cutting prices also does not seem to have had the impact suppliers wanted to increase European consumption.<\/p>\n

\u201cIf anything it has had the opposite effect,\u201d said another importer stockist. \u201cPrices have fallen so rapidly that, instead of buying more, customers have deferred purchases to see if products will be even cheaper the following week, or week after.\u201d<\/p>\n

UK importers also mentioned continuing substitution of plywood by OSB in key markets, with the competitive threat increased by the opening last year of a \u00a395 million new line at Norbord\u2019s OSB plant near Inverness in Scotland.<\/p>\n

However, an importer on the continent did not see this as a significant long-term or widespread threat, and felt the two products could co-exist.<\/p>\n

\u201cIt obviously poses increasing competition in some sectors, but in other applications there is still a preference for plywood,\u201d they said. \u201cThe degree of competition also tends to strengthen and weaken. As prices of plywood rise, some customers opt for OSB, then OSB goes up in price and we see the reverse.\u201d<\/p>","protected":false},"excerpt":{"rendered":"

EU plywood importers report that in the latter part of the year, the plywood market started to turn around and become more volatile. \u201cWe saw the Turkish economy slow dramatically, with construction particularly hard hit, and several of their big … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":59493,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4716,4715],"tags":[3291,3248,4015,3256],"class_list":["post-77165","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends","category-market-analysis","tag-eu","tag-imports","tag-oversupply","tag-plywood","topic-wood-based-panels","area-europe"],"acf":[],"yoast_head":"\nEU plywood importers face the risk of oversupply - Timber Industry News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.timberindustrynews.com\/ro\/eu-plywood-importers-face-risk-oversupply\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"EU plywood importers face the risk of oversupply - 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