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Softwood Export Council Newsletter
 
April 2009
In This Issue
AmSo China Mission
A+C Show 2009
Market report
Upcoming Trade Shows
Quick Links
 
AmSo China Mission and Interzum Guangzhou 2009
By Hande Buyuksahin
During the last week of March and first week of April the SEC launched its China mission. The SEC and its members, PLEA, PCC and MMPA, exhibited in Interzum Guangzhou 2009 trade show. Following week was for AmSo seminars in Guangzhou, Dalian and Xi'an.
 
interzum 
 
According to show organizers, Interzum Guangzhou 2009 ended on a positive note, attracting 60,697 trade buyers from the DIY (Do-it-yourself) and BIY (Build-it-yourself); Furniture manufacturing; Furniture wholesale and retail; Interior design sectors. This is an increase of 6 per cent over 2008's 57,073 visitors. And despite the global economic slowdown, there was a general optimism among the suppliers and manufacturers at the fair.

The AmSo booth was located in US pavilion which was a good opportunity for the members to be found by Chinese buyers. The booth had attracted 250 visitors during the 4 day long show. The quality of the visitors and the exhibitors were noteworthy. The SEC members had also chance to visit a Guangzhou port and timber market.
mission
 
After the Interzum 2009 show, SEC continued its seminar mission to Dalian, Xi'an,and Shanghai. The seminars were designed to educate and promote US western softwood species and applications. The presenters of the seminars were, Don Wallace, Tom Kelly from Neil Kelly Company and Jesse Yang from Taiwan.
 
The seminars were introduced by local Chinese officials.  The majority of the participants were architects , designers and builders. Chinese officials such as, International Trade department of Xi'an gave a opening speech in the seminars about the importance of learning the new technology and building materials.  The mission was informative for both sides. Chinese architects learned how to use US Western softwood species while U.S. side learned the current design trends in China.
 
Next SEC mission will be in September.
 
Architecture and Construction Materials Show 2009 Japan
acBy Tomoko Igarashi 
SEC and APA exhibited in the 'Architecture and Construction Materials Show 2009 ' held from March 3 to March 6, 2009 at Tokyo Big Site. The members of SEC, WWPA, PLEA, EBPA and CTED, State of Washington participated in the show. AmSo booth displayed the photo panels of the most recent U.S. softwood projects such as 'Makuhari Internation School' and 'Takachiba Shoji New Office Building' made with U.S. manufactured Glulam and U.S.Douglas Fir lamstock. These projects attracted audience in terms of its structural design, strength, beauty of grain, and sustainable material.
 
In terms of the U.S. softwood lumber market to Japan in 2008, it was about 236,000cm3 (100 million BF) which was about 53% upward compared to 2007. In addition, Douglas fir was about 200,000cm3 ( 85 million BF) which was 82.5% increase compared to 2007.
In addition, the U.S. export to Japan is still stable. The export volume from January to February 2009 was approximately 42,600cm3(18 million BF) which was about 99.8% increase compared to the same period of the previous year. The market is still growing.
Therefore, some of visitors showed interests in cut samples of Douglas Fir including Taruki (Baby Square) for its quality, fine grain, and market.

The most frequently-asked questions were the features of each species such as Douglas Fir, Hem Fir, Ponderosa Pine, Southern Pine as well as the usage for structural members, demand, the way of exports, major projects, and etc.,
The total number of participants was 236,740 for four-day trade show including other five shows including 'Architecture and Construction Materials Show 2009','Japan Shop 2009', 'Security Show 2009', and 'Lighting Fair' and etc.,
The next show American Softwoods Japan Office conducts will be 'Total Construction Material Show 2009' at Intex Osaka ' from June 2 to 5, 2009.
 
Market Report- The Mediterranean Region
By Ignacio Martinez 
Update of the man economical indicators of the Mediterranean countries
 
Euro Trade

Euro area external trade deficit amount up to 10.5 bn euro in January 2009
26.3 bn euro deficit for EU27.
 
Concerning the total trade of Member States, the largest surplus was observed in Germany (+175.5 bn euro in 2008), followed by the Netherlands (+40.5 bn) and Ireland (+28.0 bn). The United Kingdom (-118.0 bn) registered the largest deficit, followed by Spain (-90.5 bn), France (-67.9 bn), Greece (-35.7 bn), Poland (-24.6 bn), Portugal (-23.2 bn) and Romania (-22.7 bn).
 
The countries with a poor record on exports like most of the Mediterranean region will need to increase their competitive strengths in order to recover in a short time. Otherwise they will undergo a long recessive period beyond todays expectations. This applies particularly to the UK and to Spain. Italy has a good record of exports, therefore it may be possible to find it with the leading group to reverse the current recession. Latest data available show the stop of imports in virtually all the European countries. We see a -24% decrease of total imports from Spain,, -9.8 inItaly, -8.2% in Portugal, including a significant -4.2 and -3.3 for France and Germany respectively.
 
For the wood importing countries, this is a reflection of how weak the imports are at present. Later in this paper there is an indication of the evolution of the wood imports in Spain during 2008.
  
Spain
Softwood Sector
 
The wood sector in Spain is going through a complex situation. Several wood industries are closing the door, while the overall wood demand is reduced sharply. In the words of the Wood Importers Association chairman, Mr. Gabarró, " it is time of hard work for little money, but it is also time for opportunities". He advocated to weather the storm with the hope on better times in the short term.
 
The opinions among the wood importers reflect a sour reality: sales in clear fall around 30 to 40% less than the year before as an average, customers closures and sawmills layoffs in Europe and Africa, unavoidable cost reductions, too large stocks in the lumberyards, an increasingly exiguous market coupled with wood sales at times under purchase cost. All these factors are inducting a rather wild competition. It will also contribute to a more difficult replenishing of lumber stocks at the time the crisis is over.
 
Everybody is looking anxiously to find signs of recovery.  Expectations are that a change of the trend could be expected by the turn of the year or the first part of 2010, but this is more a hope than any facts based prediction. Until then the only recipe on what there is a general consensus is that of cutting costs and wait as long as possible. Among the flow of bad news some pointed out the announcement of a possible price recovery in origin towards the end the current year and first months in 2010. This opinion is based on the production halt in the USA and Northern European countries. Thus, as demand starts picking up there will not be enough lumber near the consumption nodes to satisfy it. While the production restores an activity level capable of handling that point, the importers forecast a price increase.
 
With this scenario at sight, the importers president requested a positive approach and a return to the values used by responsible company managers. It is obliged an ethical regeneration inside the business, the return to the culture of hard work, it is time to work hard for a modest return, but even the crisis can offer opportunities. To make the best of them we need to reorganise our companies, invest in talent, in working teams, and work as if we were starting from scratch. All our skills need to be applied to the task of adapting to this environment. At the end it is the price of returning to normal affairs.
 
Among the key focus areas of activity for the association in 2009, is the endorsement of a mandate to promote actively the use of certified lumber. To this end it has been approved the publication of a monograph on certified wood lumber and sources. The importers association advocates the use of wood as a contemporary material, both in construction and decoration, thanks to its technical, design a environmental qualities compared with other materials intensively used in the last century like aluminium,, pvc, steel and concrete.
 
Wood Industry
 
Preference for softwoods in the molding industry
 
The wood industrial sector related with the molding industry has adopted finger joint stock as a main source for raw material. Preferences are on low density wood with restrained movement after seasoning. Tropical supplies becoming increasingly more difficult or unpredictable quality wise, has pushed this industry to seek other alternatives. For these reasons, today the implantation of Radiata pine is a success. This material is supplied finger jointed, dried to a 8% moisture content, and cut to final sizes per the customer's specifications. Purchase orders in the range of 500 to 1000 cubic meters are not uncommon in the frame moulding industry. Country of origin: Chile. Trials with
 
The finger joint material, planned 4 sides and square edged, is typically supplied to a 10' length in three main thicknesses: 20 mm (25/32"), 25 mm (1") and 30 mm (1 3/16")  by 35 mm, in 5 mm increments in width up to 70 mm. These members are glued together according to the specific profile frame and machined accordingly. Finally ,a coat of plaster is applied over what decoration for the finished frame follows. This use is not directly impacted by the construction stagnation, therefore still maintains interesting activity levels.
 
 The Spanish molding industry is a net exporter to Europe of this type of product and it competes well with other suppliers because its largely specialized skills required and technology involved. This means is reasonably protected from low cost  molding imports from Far East countries.
  
Italy
Data available from statistical sources for the current year are behind schedule regarding the import trades. In  the table below, data furnished by Istat, the Italian  statistical agency, softwood import volumes for January 2009 are available only for third countries. This is due to the reporting requirements. Intra European trade has only recently reinstated the need to report on volume data also. However this information is only available long after and fragmentary and lacks quite often consistency.

PRODUCT

SOFTWOOD

SOFTWOOD

PARTNER/PERIOD

Jan. 2008

Jan. 2009

AUSTRIA

200263

 

CANADA

2161

3238

SWITZERLAND

8000

6406

CZECH REPUBLIC)

16085

 

GERMANY

53952

 

FINLAND

13074

 

FRANCE

2046

 

POLAND

3676

 

ROMANIA

7636

 

RUSSIAN FEDERATION (RUSSIA)

16316

1930

SWEDEN

11750

 

SLOVAKIA

8901

 

UNITED STATES

2830

2232


 

Despite it, clearly the volume of softwood imported has seen a reduction, with the episodic increase for Canada. As more information is added into the system, we will be able to confirm this trend. Recently adopted financial measures at a worldwide level may help lifting the conditions that have depressed the market to the current levels.

 

 

The Italian wood association Fedecomlegno just launched a publicity campaign to promote the use of certified wood in exterior carpentry.  It is based on the concepts of renewability and and energy saving values. Fedecomlegno seeks reinforcing the image of wood as a natural material that carries answers for todays needs. The campaing uses three icons linked with the motto: Think further pass into wood. It includes the view of a mountain against a blue sky, at the base a forest and in first instance a wooden window frame. The underlying messages being: With the wood window, carbon dioxide is captured, and the air we breathe is cleaner, while achieving a substantial energy saving. A number of Italian associations related with the promotion of wood like Promolegno and Vero Legno are participating with Fedecomlegno in this promotional campaign during 2009.


 

Upcoming Trade Shows and Seminars 


 

April

  •  Dubai Wood, April 21-23 Dubai

May

  • Interzum,  May 13-16   Koln
  • Design Build Australia May 21-23   Sydney
  • USCB Sales Mission May 11-15   Fuzhou, Kunming and Chengdu
     

June

  • SEC Spring Meeting - June 11 - Sacramento
  • Total Construction - Osaka - June 3-6
  • Interbuild Egypt - Cairo - June 18-22

August
 

  • Tecno Meuble Guadalajara August 19-22
     
September
  • FMC China September 9-12 Shanghai 
  • SEC Chinainterior seminars
  • USCB mission

October
 

  • EXPO CIHAC October 14-17 Mexico City
  • Interbuild 2009 October 18-21, NEC Birmingham

November

  •  Maderalia November 3-6 Valencia Spain
  • Japan Home and Building Show Novemebr 11-13 Tokyo

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Softwood Export Council- Promoting the expansion of export markets for primary and secondary softwood products manufactured in the United States.
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