4th   QUARTER  MARKET REPORT

FOR NORTHERN EUROPE

 

OCTOBER - DECEMBER 2004

 

OVERALL EUROPEAN SITUATION

 

The timber markets across Europe have improved over the last quarter compared with the previous nine months. This improvement in Europe, has been helped by the weakening US Dollar which has made American softwoods more attractive and more competitive, compared with timber from other world regions.

 

Germany

 

As a consequence of the poor economy that has existed in Germany for the past two years, there have been major changes which have taken place within the German timber industry during this period. A number companies, well established companies, have gone into bankruptcy or have been taken over by other companies. This has reduced the number of timber importers involved directly with overseas trade. Despite this reduction in the number of timber importers, imports from the US are running 3% higher than compared with the same period in 2003, with Douglas fir up by 72%. This is in part due to an improving economy, albeit slight and the improved competitiveness of  American softwoods resulting from a weakening U.S. dollar.

 

Belgium-Luxemburg

 

These two countries continue enduring stagnant economies and this can be seen in the level of exports which are down by 30% compared with the same period in 2003.  From comments made by a number of importers in Belgium and from reading trade journals, this position is unlikely to change until at least the middle of 2005 when a number of government initiatives will have taken effect.

 

France

 

France continues to enjoy an improving economy. This is resulting in an increase in house building across the country. This improvement is reflected in the increased levels of U.S. exports of American softwoods to France by 30% (YTD) with both Southern Pine and Douglas fir benefiting from this situation.

 

Timber has always been popular in the use walkways(boardwalks) and marine applications. However, more recently, timber decking is becoming more popular in France with commercial projects and private homeowners. As a consequence,  we have been meeting with Eric Boilley, Director, La Commerce du Bois, the French Timber Trade Federation in Paris, to discuss the possibility of  working together on activities to promote timber decking in France. Our interest would obviously be to promote American softwoods. This approach would be similar to the one we are using in the UK with our involvement with the Timber Decking Association in the UK. The discussions with Le Commerce du Bois are in their early stages, but notwithstanding these discussions, we as American Softwoods will be pursuing this market opportunity.

 

Appendix A of this report shows an article on timber decking in the publication   “Charpente-Menuiserie-Parquets”. The purpose of including this article in the report is not only to highlight the fact that decking is increasing in popularity but, more importantly, the material the article is promoting is that of Heat Treated Wood. This type of timber product has been aggressively marketed and promoted by the Finnish timber industry as the product of the future, since following the heat treatment process, it does not need any preservative/chemical treatment because this process alters the wood structure in such away that it becomes unpalatable to wood destroying fungi. During the early days of this product’s promotion it was only recommended for use as cladding(Siding). However, based on more recent test results carried out in accordance with EN335-2, claims have been made that heat treated wood  is now suitable for use in Hazard Classes 1, 2 and 3. Hazard Class 3 defines this area of use as “Subject to long term wetting but not in ground contact”.

 

This new acceptability of heat treated wood for Hazard Class 3 applications posses not only a real and significant threat to treated Southern Pine but to all treated timber, no matter which timber species is used for out door applications. This situation could make our efforts in promoting treated Southern Pine in France much more difficult.

 

Ireland

 

Ireland’s housing market continues to grow as a result of its continually improving economy. This has resulted in a small upturn in U.S. exports of  American softwoods ( YTD 29%  above the comparable period in 2003), particularly for Southern Pine, which is a favoured specie for interior joinery products such as staircases.

 

United Kingdom.

 

The economy in the UK continues to improve. The number of houses built up to the end of September increased by 8.6% to 49,000. However, this rate growth is not likely to continue because of the effect of three increases in the mortgage rate. All financial commentators indicate that these rises will slow the economy down. However, this increase in house building together with the weakening U.S. dollar has improved the exports of American softwoods

 

The Netherlands

 

The Netherlands continues to suffer a stagnant economy. This in turn is affecting the building and construction industries. Comments made by a number of timber industry members is that they do not see any change in the situation before the middle to end of 2005.

 

INQUIRIES:

 

The UK office receives inquiries from all markets in Northern Europe.

Since the last report, it has received the following number of enquiries covering the period October - December 2004:

 

OFFICE

 

 

 

Web

45

 

FAX

10

 

Telephone

  8

PUBLICATONS

 

 

 

The Builder

65

 

The Architect

43

 

Street & Landscape

69

 

ABC & D Decking

10

TOTAL

 

 250

 

WEB-SITE VISITS

 

Since it was launched in January 2001, www.americansoftwoods.com continues to attract online visitors:

 

WEB - SITE ACTIVITY  FOR 2004

 

 

 

===========================

 

 

 

 

 

 

 

 

 

 

 

 

Visitors

 

Page

Requests        Site Hits

 

January

 

2246

 

130342

140535

 

February

 

2106

 

120759

129918

 

March

 

2366

 

128582

138659

 

April

 

1993

 

100668

109154

 

May

 

1786

 

89133

96282

 

June

 

1458

 

82260

88794

 

July

 

1339

 

73543

79382

 

August

 

1586

 

74334

80134

 

September

1932

 

123729

132020

 

October

 

2169

 

117,067

125.074

 

November

 

1957

 

109947

117760

 

December

 

1371

 

80361

  85668

 

 

 

 

 

 

 

 

TOTALS:

 

22300

 

1,230,899

1,323,565

 

 

Since the web-site had been upgraded in November 2003, the facility for the visitor to register his/her details in order to receive information on any aspect of American softwoods continues to increase.

 

When applicable, the registered information will be used to send notification of events and activities by e-mail to those who have registered.

 

ACTIVITIES CARRIED OUT DURING OCTOBER - DECEMBER 2004

 

October 10 - 13:        Attend and participate at ASFI trade show, NEC, Birmingham, UK

 

October  14:               Attended TDA Annual General Meeting Leicester, UK   

 

October 28:                Attended meeting of the UK Timber Grading Committee, London, UK

 

November 10:            Meeting with SPA PR to discuss future marketing and advertising activity, UK Office.

 

November 15 – 19:   Trade service visit to Hamburg.

 

December 3:             Attended Meeting at Agricultural Office, US Embassy, London, UK

                                                           

December 9:             Attended Board Meeting of the TDA, New Holland, UK

 

December 17:           Meeting with Rex Osborne, Toro Timber and Andrew True, Forest Products Agencies Ltd

 

APPENDIX A