The combined effects of EU and UK sanctions on Russian plywood and EU anti-dumping duties on Chinese hardwood plywood and potentially also Brazilian softwood plywood, will impact plywood availability in the EU market. This comes at a time when the level of plywood consumption in Europe is facing significant headwinds.<\/p>\n
Construction industry buyers reported another decline in construction activity in the Eurozone, with the pace accelerating in July. The latest HCOB Eurozone Construction Purchasing Managers\u2019 Index (PMI) showed the steepest decline in new orders since February.<\/p>\n
The seasonally adjusted Total Activity Index dropped to 44.7, from 45.2 in June, marking the 39th consecutive month below the 50.0 threshold separating growth from contraction.<\/p>\n
Housing remained the worst-performing segment, although its rate of decline eased slightly, while civil engineering and commercial work also contracted. France recorded the sharpest fall in output among the bloc\u2019s three largest economies. By contrast, German construction companies reported a rate of decline that, while still sharp, was the weakest for two and a half years and suggested signs of a recovery.<\/p>\n
Italy posted its first decline in five months as weak demand led to the fastest reduction in purchasing activity since December 2024. Sentiment remained negative, with only Italian firms forecasting growth. \u201cThe outlook for European construction companies remains weak,\u201d said HCOB economist Norman Liebke.<\/p>\n
Construction industry buyers in the UK recorded the steepest fall in activity in more than five years in July, with the latest S&P Global UK Construction Purchasing Managers\u2019 Index (PMI) showing sharp declines across all main sectors.<\/p>\n
The headline PMI dropped to 44.3, from 48.8 in June, signaling a marked downturn driven by a fresh contraction in residential building and a steep fall in civil engineering activity. Commercial construction also fell, albeit at a softer rate. New orders declined for a seventh consecutive month, with firms citing fewer tender opportunities, site delays and weaker customer confidence.<\/p>\n
One of the few bright spots for the European plywood trade is that freight rates are currently quite low and there are indications that the recent volatility in the shipping sector may be easing. According to the Drewry's World Container Index, at this time last year rates on the Shanghai to Rotterdam route for a 40-ft container stood at over $8250 but these had fallen to US$4774 by the end of last year and hit a new low of just above US$2000 in early May this year.<\/p>\n
Drewry expects spot rates to remain less volatile in coming weeks. Drewry\u2019s Container Forecaster expects the supply-demand balance to weaken again in the second half of this year, which will cause spot rates to contract. However the volatility and timing of rate changes will depend to some extent on future US tariffs and on capacity changes related to the introduction of US penalties on Chinese ships, which are uncertain.<\/p>","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":50635,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5204,4715],"tags":[3291,3248,3256],"class_list":["post-96771","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news","category-market-analysis","tag-eu","tag-imports","tag-plywood","topic-wood-products","topic-wood-based-panels","area-china","area-europe","area-global","area-russia","area-south-america"],"acf":[],"yoast_head":"\n