Quarterly Market Report
Mediterranean Region
April - June 2003
Spanish Wood Industry
Sawn Lumber Imports in Spain: 1st Quarter
Italian Softwood Imports: January-April 2003
Market News
Part Two – Activities
Seminars
Trade Servicing
Advertising and PR Campaign
Calendar of Activities
Despite
forecasts for a crude decline in Spain’s construction industry during 2003, the
facts show that it continues to serve as the most significant catalyst in the
region’s economy. Current projections
for housing starts in 2003 indicate a record level of nearly 600,000 units. If
these projections are confirmed, the results for the wood industry could be
very promising in the months ahead.
In fact, the
continued Southern Pine market share slump in Spain could be reversed. Current
Euro currency strength, coupled with strong construction and ongoing
promotional campaigns among wood industry professionals and construction
professionals, may help reverse the recent trend by the end of this year.
Positive news from different regions suggest that a recovery is near.
Several
activities were executed during the second quarter of this year. An ongoing
advertising campaign on Southern Pine lumber is gaining momentum and is
expected to reach a large number wood industry and construction professionals.
A number of press releases have been prepared and made available to the media
with positive results to date. The seminar activity was completed with a
presentation in the island of Ibiza, known as a key area for Southern Pine
usage. This activity was used for gathering market information on moldings and
photographs for future press releases about the use of Southern Pine in
exterior carpentry and furniture making.
The Spanish wood
sector is formed by nearly 41,000 firms with 240,000 employees. The furniture
industry represents a 56% (13,400 companies) margin, compared to all the other
wood industries, which represent 44%. Of the total, 94% of them have less than
20 employees and 65% of the industries are formed by two people or fewer. The
carpentry sector encompasses both structural and non-structural applications.
This subsector is formed by approximately 12,500 industries and nearly 55,000
employees. Its regional distribution shows there are higher concentrations in
the regions of Valencia, Cataluña and Galicia, but also in Madrid and
Andalucia.
Exports in 2002
have been reduced by -1.3% overall compared with positive growths in 2000-2001
(+4.94%), and an excellent 14% in the period 1999-2000. The main export
destination (65%) has been the EU. Imports show a declining direction, too,
following the weakening of the economic environment domestically and abroad. In
2002 imports grew by a modest 1.34% compared
to 5.59% in 2000-2001 and an astonishing 19% in 1999-2000. With the
stagnation of the economy, imports have stopped their brisk growth, and
importers have chosen stock reduction and a very selective purchase approach.
The primary
semi-processed wood products during 2002 were: (million Euro)
Sawn Oak
(440791909)*118
Sawn European
redwood (44071093)113
Sawn tropical
hardwoods (44072969)113
Sawn conifers
(other) (44071098)112
Veneers
(44089095)100
Eucalyptus wood
(44039930) 84
Sawn spruce
(44071091) 67
Fiberboard
(44112110) 66
Other sawn wood
species (44079997) 49
Multilayer
flooring (44183091) 46
* Represents the
harmonized tariff code position
Raw wood fibers
in different forms represent more than 50% of the total imports, therefore the
Spanish wood industry is a strong manufacturer of wood products. The origin of
the main supplies are France, Germany, Portugal, Chile, USA, Finland, Sweden,
Ivory Coast, Cameroon, and Brazil (Source: Confemadera).
SAWN LUMBER IMPORTS IN SPAIN (January-March 2003)
The first
quarter of 2003 has shown slower import activity overall, although softwood
imports grew by 5.3% overall. The most important supplier, Sweden, has seen a
decline of 8.7% compared to the previous year, Other traditional suppliers
losing market share have been Russia -31%, Portugal –7.3% and USA -3%.
|
country |
Volume m3 |
% |
|
|
|
2002 |
2003 |
|
|
Sweden |
140500 |
128200 |
-8,7 |
|
France |
89400 |
100000 |
11,8 |
|
Portugal |
77600 |
72000 |
-7,3 |
|
Finland |
56900 |
66000 |
15,9 |
|
USA |
29600 |
28700 |
-3,0 |
|
Russia |
18600 |
12800 |
-31,0 |
|
Germany |
19300 |
26200 |
35,7 |
|
Brazil |
18400 |
25100 |
36,4 |
|
Chile |
14100 |
22200 |
57,3 |
|
Poland |
12800 |
14600 |
14,3 |
|
Other |
29900 |
38100 |
27,4 |
|
total |
507600 |
534400 |
5,3 |
The market share
lost by Swedish lumber is probably caused by the weaker competitiveness induced
by a strong krona, although it also reflects superior productivity from other
suppliers and perhaps difficult access to saw logs caused by an oversupply in
the world’s paper markets. Cuts therefore are reduced and the saw logs have
become more scarce.
Net winners were
France (+11.8%), Finland (+ 15.9%), Germany (+ 35.7%) and significantly Chile
(+57.3%) and Brazil (+36.4%). With respect to US supplies, it seems that the
large losses have been restrained. Trade sources confirm more active demand and
a possible recovery during the rest of 2003 and during 2004, if the Euro
retains its strength against the dollar. As the current high dollar inventories
are depleted more ambitious orders should be expected.
To better
understand the relative competitiveness of the softwoods from several
countries, the average price per cubic meter during the first quarter is shown
next. As noted, American lumber nearly doubles the running prices for Swedish
material, which is mostly consumed by the wood industry in Spain. The relative
high prices achieved by Radiata pine lumber from Chile, probably destined to
the furniture industry, is also significant.
On the low end, fiber from Portugal and France is likely to be converted
primarily into packaging materials.
Note the shaky
situation in the demand for hardwoods. Despite positive construction activity,
first-quarter imports of oak from the U.S. dropped 20.3%, but this market
segment has seen a 9.6% decrease in global imports of oak.
During the past
weeks, no major changes were detected, implying price stability. Public
perceptions pointing to greater scarcity of saw logs for European redwood and
whitewood (spruce) are not confirmed. Therefore, prices remain stable with no
increases expected for the second half of the year.
Price References
(Source: AEIM)
Basic Price References (EUROS / M3). C.I.F
|
|||||
|
|
Mediterranean
Ports |
|
|||
|
REDWOOD |
|
|
WHITEWOOD
|
||
|
|
|
|
|
|
|
|
U/S |
275/280 |
|
|
U/S |
235 |
|
|
|
|
|
|
|
|
|
|
|
|
SF |
215 |
|
|
|
|
|
|
|
|
V |
205
|
|
|
V |
200 |
|
|
|
|
|
|
|
|
VI |
175
|
|
|
VI |
170 |
U.S. Lumber
Exchange rate at the time of this report: 1 EURO = 1.149 U.S. Dollar. Although the dollar has recovered slightly,
the Euro remains very strong. Southern
Pine No price changes have been observed during the period and prices show no
trend. (Source: AEIM)
|
PRICE REFERENCES ON SOUTHERN PINE. MAIN
SPECIFICATIONS |
||||||||
|
|
|
|
Dollars/M.
CIF Valencia. |
|
|
|
||
|
SAPS |
4/4 X 6 |
4/4 X8 |
4/4 X
10 |
4/4 X 12 |
5/4 X 8 |
1-5/8
x 6 y 8 |
1-5/8
x 10y12 |
8/4 |
|
|
980 |
980 |
1.090 |
1.160 |
1.175 |
975 |
1.100 |
1.025 |
|
|
|
|
|
|
|
|
|
|
|
PRIME &Bttr |
|
|
|
5/4x4 |
5/4x8
y10 |
12/4x6
y + |
|
|
|
|
|
|
790 |
990 |
1.200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FLITCHES N º 1 |
|
|
|
|
8/4 X
10y+ |
12/4x10y+ |
|
|
|
|
|
|
|
|
900 |
1.150 |
|
|