{"id":81049,"date":"2021-08-05T07:07:08","date_gmt":"2021-08-05T07:07:08","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/challenging-european-plywood-market\/"},"modified":"2025-09-19T08:55:54","modified_gmt":"2025-09-19T08:55:54","slug":"challenging-european-plywood-market","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/challenging-european-plywood-market\/","title":{"rendered":"Challenging European plywood market"},"content":{"rendered":"<p><em>Some European plywood importers report that container costs out of Asia have started to come off their pandemic peak. Others, however, say that they are still being quoted charges which one described as \u2018unreal\u2019. \u201cWe\u2019ve recently been offered rates for a 40ft container of US$15,000 to US$20,000,\u201d they said. \u201cThat compares with US$1,500 to US$2,000 in October 2020. It\u2019s crazy.\u201d<\/em><\/p>\n<p>Even those who report some softening in container rates confirm they remain at historically high levels, hence widespread migration to breakbulk.<\/p>\n<p>The unprecedented inflation in container charges is principally attributed to the impact of the pandemic on trading patterns, which has left containers in the wrong places, with major quantities stacked empty at ports in consumer countries.<span id=\"more-26507\"><\/span><\/p>\n<p>\u201cChanges in consumption and shopping patterns triggered by the pandemic, including a surge in electronic commerce, as well as lockdown measures, have led to increased import demand for manufactured consumer goods, a large part of which is moved in shipping containers,\u201d stated a briefing note on the situation from UNCTAD. \u201cCarriers, ports and shippers were all taken by surprise. Empty boxes were left in places where they were not needed, and repositioning was not planned for.\u201d As the global economy more generally revived when lockdown restrictions eased, exporters in producer countries, notably in Asia, found themselves increasingly short of containers and prices rose accordingly. \u201cThere\u2019s also clearly been an element of profiteering at some shipping lines,\u201d said a plywood importer.<\/p>\n<p>\u201cThe fact some are quoting container rates at half the value of the plywood contents is not all down to availability.\u201d<\/p>\n<p>Importers also point out that breakbulk is not a straightforward alternative, particularly for those who have not used it before. It involves more administration, the risk of penalties if cargoes are not at port on time or in the volumes booked and greater likelihood of product damage in transit. While considerably cheaper than container freight, it has also become more expensive.<\/p>\n<p>\u201cBreakbulk operators are seeing an opportunity to make money and their rates have roughly doubled in the last six months,\u201d said an importer distributor.<\/p>\n<p>And transport is just one of the challenges facing the European plywood import trade. Over the last three months, they report, global consumption has continued to gather pace, given added impetus by government economic stimulus measures.<\/p>\n<p>At the same time production in many parts of the world remains constrained by lack of personnel due to Covid-19 infection or isolation, plus pandemic safe work practices. Raw material supply is also cited as an issue for some manufacturers. Product prices have consequently continued to climb.<\/p>\n<p>\u201cWe\u2019re getting good margins, but obtaining product and managing allocation, keeping your key customers covered and reasonably happy despite the price rises, has made it an increasingly stressful business,\u201d said an importer distributor. \u201cIt\u2019s lucrative, but more challenging than at any time we can remember.\u201d<\/p>\n<p>Some European importers expected plywood demand to ease somewhat over the summer season. But, with tourism still depressed by the pandemic, others say they\u2019re not expecting to see the usual degree of holiday slowdown. The general consensus is that for the time being consumption remains on an upward curve. The European DIY and home improvement market is cited as a key plywood demand driver, as it has been since summer 2020.<\/p>\n<p>\u201cWhile pandemic controls are being relaxed, large numbers of people are still working from home at least part of the time, and that\u2019s expected to be a permanent state of affairs for many. As a result they\u2019re spending more on improving and enlarging their properties. Loft conversions and garden office building are at record levels,\u201d said a UK-based importer.<\/p>\n<p>\u201cSpending on holidays, which was absolutely decimated in 2020, also continues to be depressed this year, leaving more funds for investing in homes and gardens. The UK Construction Products Association stated that in normal times UK holiday expenditure alone exceeds \u00a360 billion a year. So there\u2019s a lot of surplus money around.\u201d<\/p>\n<p><a href=\"https:\/\/timberindustrynews.com\/wp-content\/uploads\/2025\/09\/sveza-plywood-4.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-24825\" src=\"https:\/\/timberindustrynews.com\/wp-content\/uploads\/2025\/09\/sveza-plywood-4.jpg\" alt=\"\" width=\"478\" height=\"354\" \/><\/a><\/p>\n<p>Demand from new build is also reported to be looking increasingly healthy, not least due to fiscal support from governments which see construction as a key engine of economic recovery. This is borne out by the June report from Euroconstruct. It says that European construction recovery is faster than expected and much of the loss in output due to the pandemic is expected to be recovered in 2021. It forecasts average building growth in the 19 Euroconstruct countries this year to be 3.8%, following last year\u2019s 5.8% contraction.<\/p>\n<p>While recovery rates will vary from country to country, with Ireland and Hungary expected to show some further decline in 2021, this puts the industry overall on track to reach pre-crisis levels of activity in 2022 latest. Besides construction, importers also report good growth in demand from joinery, furniture manufacture, packaging and boat building. \u201cIt\u2019s pretty much across the board,\u201d said one.<\/p>\n<p>So far, the import sector reports little market push back on price. \u201cIt can\u2019t last forever, and if we\u2019re not seeing some more significant price easing in two or three months, there may be more resistance, especially if there\u2019s any degree of economic slowdown,\u201d said one importer. \u201cSo far though, customers accept that this is a market-wide phenomenon.<\/p>\n<p>They\u2019re doing good business, so they\u2019re willing to pay.\u201d Despite logistical difficulties, added to which are longer manufacturing lead times, most importers are reported to be \u2018well covered for purchases\u2019 over coming months.<\/p>\n<p>\u201cBut stocks on the ground are still very short, there\u2019s little in the way of a product buffer,\u201d said an importer.<\/p>\n<p>\u201cWhatever comes in is delivered immediately. Nobody is saying, why don\u2019t you hold on to our shipment and we\u2019ll take it in four to six weeks. Customers are waiting for vessels to arrive to receive their cargoes. They want it straight away.\u201d<\/p>","protected":false},"excerpt":{"rendered":"<p>Some European plywood importers report that container costs out of Asia have started to come off their pandemic peak. Others, however, say that they are still being quoted charges which one described as \u2018unreal\u2019. \u201cWe\u2019ve recently been offered rates for &hellip; <a href=\"https:\/\/www.timberindustrynews.com\/ro\/challenging-european-plywood-market\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":57985,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4716,4715,4714],"tags":[3299,3351,3256],"class_list":["post-81049","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends","category-market-analysis","category-wood-industry-prices","tag-europe","tag-market","tag-plywood","topic-industry-prices","topic-wood-based-panels","area-europe"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Challenging European plywood market - 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\/challenging-european-plywood-market\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Challenging European plywood market - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"Some European plywood importers report that container costs out of Asia have started to come off their pandemic peak. 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