{"id":78097,"date":"2019-09-11T13:57:17","date_gmt":"2019-09-11T13:57:17","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/european-plywood-markets-shaken-strong-pressure\/"},"modified":"2025-09-19T08:51:37","modified_gmt":"2025-09-19T08:51:37","slug":"european-plywood-markets-shaken-strong-pressure","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/european-plywood-markets-shaken-strong-pressure\/","title":{"rendered":"European plywood markets shaken by strong pressure"},"content":{"rendered":"
\n

Some European importers say the deterioration in market conditions started from the beginning of the year. Others said that their first three to four months sales were satisfactory, but subsequently turned down. All agreed that by the end of July business was flat. One described it as \u2018dead as a dodo\u2019.<\/strong><\/em><\/p>\n

\u201cThe orders are still coming in, but it\u2019s much more piecemeal,\u201d said one company. \u201cCustomers aren\u2019t committing to large volumes, it\u2019s hand to mouth and just in time. Everyone is very wary of building stocks in the current climate.\u201d<\/p>\n

Contributing to market problems, the larger European stockholding importers are reported to have bought heavily towards the close of 2018, due to over confidence about market growth and in order to buy within the plywood quota. So they held very large inventories as demand started to contract. They are said now to be attempting to work through the excess and in the meantime have curtailed purchasing further.<\/span><\/p>\n

In response to declining demand, combined with particular circumstances in key supplier countries and manufacturers attempting to gain competitive advantage, prices have been trending down, depending on source, for the past 10- 12 months.<\/p>\n

\u201cBrazilian elliottis is down around 40% since last August\/September, and Russian down 25-30% since around October, while Chinese has come down 10-15%,\u201d said an importer.<\/p>\n

The Brazilian price squeeze has also been attributed to tightening demand in producers key US export markets, plus deteriorating economic conditions in Brazil itself impacting producers\u2019 domestic sales.<\/p>\n

\u201cAt recent price levels, given the cost of elliottis logs, manufacturers cannot be making a margin, and, with at least one producer already closing, and others mothballing plant and taking out shifts, conditions are clearly tough and further casualties can\u2019t be ruled out, \u201d said another company. \u201cIt\u2019s more difficult to work out whether Russian mills are still in profit as their raw material costs are not so easy to ascertain, but they can\u2019t want to continue at recent price levels.\u201d<\/p>\n

Chinese price deflation is put down to manufacturers following international market trends to remain competitive, plus US tariff hikes.<\/p>\n

The Americans were also reported in April to be stepping up policing against attempts to evade antidumping and countervailing tariffs on Chinese imports.<\/p>\n

Indonesian and Malaysian plywood prices were also reported to have weakened in line with the wider market, although one importer said that, other than in the UK, these suppliers had become \u2018niche\u2019 in the EU.<\/p>\n

\u201cThey\u2019ve faced increasingly fierce competition from other sources,\u201d they said. \u201cFor instance, Indonesian film-faced has been undercut by Russian, which has also become an increasingly high quality product.\u201d<\/p>\n

On a brighter note, there are signs that prices may finally be bottoming out, with some Brazilian and Russian suppliers reported to be attempting to edge the market upwards slowly.<\/p>\n

However, many stockholding importers are said to be still taking a hit on over-valued stocks.<\/p>\n

\u201cIn some cases we\u2019re talking about US$100 cu.m difference between what companies paid for product, and current import prices. That\u2019s around US$5,000 per container and it\u2019s not unusual for some of the bigger businesses to be placing orders of 100 to 200 containers, so we\u2019re talking about stock write-offs of between US$500,000 to US$1 million. It\u2019s pretty serious. Quite a few companies must be under some pressure. Consequently we\u2019re being very careful in our purchasing. Given the precarious state of some Brazilian producers, we\u2019re keeping a close eye on payment times and in we\u2019re also not prepaying for orders as we used to. Once a shipment is on the water, then we\u2019ll pay.\u201d<\/p>\n

Chinese prices were also reported by a UK importer as now \u2018steady\u2019, with Indonesian and Malaysian following suit, \u2018although volumes of the latter have been down and shortages are anticipated in Q4, which is also the rainy season\u2019, they said.<\/p>\n

Latest figures from Eurostat are for January to May 2019, so prior, according to most importers, to the sharpest slowdown in demand. They show total EU imports of plywood by EU countries (including internal EU trade) down 4.3% compared to the same period in 2018 at 2.01 million tonnes. Total EU imports from outside the EU were 1.27 million tonnes, 2% more than the same period in 2018.<\/p>\n

Of larger EU importers, Spanish imports (including intraEU and extra-EU imports) were up 11.4% to 52,600 tonnes from January to May. This, say plywood businesses, reflects the country\u2019s improving economy, with the Bank of Spain in June revising its forecast for GDP growth for the year from 2.2% in March to 2.4% and Spanish \u2018value-added\u2019 construction, led by the residential and commercial building, sector expected to grow 3%.<\/p>\n

Total intra-EU and extra-EU imports were also up in Belgium (+4% to 165,300 tonnes), France (+6.3% to 157,400 tonnes) and Denmark (+9.3% to 69,500 tonnes).<\/p>\n

However, imports fell in Poland (-5.2% to 94,900 tonnes), Italy (-13.4% to 124,700 tonnes), Netherlands (-0.8% to 184,700 tonnes), Germany (-15.7% to 372,100 tonnes) and UK (-2.6% to 373,400 tonnes).<\/p>\n

EU tropical hardwood plywood imports were actually up from January to May compared to the same period in 2018, rising 11.8% in volume to 149,200 tonnes and 20% in value to \u20ac133.3 million. This, say importers, reflected continuing confidence in demand in late 2018 and that price deflation experienced in the market was more focused in temperate hardwood and softwood sectors, and became steeper as the year went on.<\/p>\n

In the January to May 2019 period, tropical plywood imports fell in Belgium (-3.1% to 16,300 tonnes), France (-2.4% to 8,700 tonnes), and Italy (-0.3% to 7,100 tonnes). However, German imports of tropical plywood rose 3.1% to 11,200 tonnes, and imports in the Netherlands were up 5.6% to 14,700 tonnes, but the biggest increase came in the UK, up 22.2% at 83,200 tonnes, a trend attributed in part to stockpiling pre-Brexit. \u201cQuite a number of companies built their [tropical plywood] stocks very high, despite weakening demand and they\u2019re now trying to offload surpluses which means competitive market conditions,\u201d said one UK importer.<\/p>\n

EU tropical hardwood plywood imports were up from China (+48.5% to 66,000 tonnes), Brazil (+23.4% to 5,400 tonnes) and Vietnam (+16.4% to 5,400 tonnes). However, imports fell further from Malaysia (-31.8% to 16,100 tonnes) and were also down 1% from Indonesia, to 39,700 tonnes.<\/p>\n

Asked whether FLEGT licensing was having any more market impact for Indonesian suppliers, EU importers echoed comments from the last IMM Trade Consultation in Antwerp earlier this year. They said there was still little awareness or understanding of what a FLEGT license means further down the supply chain and that, where any form of legality or sustainability verification or certification was specified, it was FSC or PEFC. So FLEGT remained a \u2018nice to have\u2019 rather than a \u2018must have\u2019.<\/p>\n

Previously reported mismatches on FLEGT licensed shipment product codes between the EU and Indonesia were not flagged up by importers as a major issue and one thought the problem had been \u2018largely resolved\u2019.<\/p>\n

An issue reported in Germany of customs putting \u2018patched\u2019 plywood, which was touch or contact sanded to achieve a specified nominal thickness post import, into a higher duty band has also been settled according to German timber trade federation GD Holz. The authorities ultimately decided this did not constitute a product refinement.<\/p>\n

In the EU temperate hardwood plywood sector, imports from outside the EU were up 2.9% overall to 630,300 tonnes in the January to May period.<\/p>\n

The biggest increases came in imports from Russia (+10.8% to 337,800 tonnes) and Ukraine (+17.2% to 37,100 tonnes). The largest decreases were in imports from China (-7.9% to 199,300 tonnes) and Belarus (-8.5% to 45,200 tonnes).<\/p>\n

In softwood plywood, EU imports from outside the bloc between January and May 2019 contracted 1.7% to 487,000 tonnes, with biggest declines from Chile (-13.3% to 43,500 tonnes) and Russia (-10.5% to 40,600 tonnes).<\/p>\n

However, imports increased from China (+2.5% to 28,500 tonnes) and Brazil (+4.3% to 358,900 tonnes). Growth in the latter was again attributed in part to UK stockpiling in the first quarter.<\/p>\n

\u201cThere was crazy elliottis buying in the first three months \u2013 way too much,\u201d said a UK importer. \u201cThen it was dumped as forward prices kept falling. Utter madness by UK importers.\u201d<\/p>\n

Looking forward, EU importers said they could see no immediate reason for much change in market conditions through the rest of 2019. One anticipated improvement setting in in 2020, although another said it was impossible to predict \u2018when we can\u2019t even forecast what\u2019s going to happen in the coming three months. The overall economic outlook is just too uncertain\u201d.<\/p>\n

Prices were expected to be more stable, with Russian and Brazilian suppliers continuing to nudge levels upward. \u201cBut in the current climate, with Brexit, international trade tensions between the US and China and to some extent the US and Europe, we don\u2019t anticipate jumps of 10%,\u201d said an importer.<\/p>\n

\u201cWe\u2019re gearing for the market to remain competitive,\u201d said another company. \u201cIn fact, forecasters are saying we\u2019re going to have to get used to lower overall economic growth than recently for the next two to three years. It\u2019s a case of being cautious in buying, ensuring stocks are not too high and being as lean and mean as possible.\u201d<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

Some European importers say the deterioration in market conditions started from the beginning of the year. Others said that their first three to four months sales were satisfactory, but subsequently turned down. All agreed that by the end of July … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":63034,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4716,4715],"tags":[3291,3256],"class_list":["post-78097","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends","category-market-analysis","tag-eu","tag-plywood","topic-forestry","topic-wood-based-panels","area-europe"],"acf":[],"yoast_head":"\nEuropean plywood markets shaken by strong pressure<\/title>\n<meta name=\"description\" content=\"Some European importers say the deterioration in market conditions started from the beginning of the year.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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