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Softwood Export Council Newsletter
 
February 2009
In This Issue
Expo Promueble
Japan Housing Starts
N. Europe Market Report
MadeExpo
Upcoming Trade Shows
Quick Links
 
Expo Promueble 2009
 
mexico

By Fernanda Vale
Expo Promueble, where furniture manufacturers and suppliers exhibited, took place from January 21st to 24th at "Centro Banamex" in Mexico City.  Members of the SPC, NAWLA, and PLEA were in attendence, helping Mexican and US staff educating a steady  stream of show attendees.
 
Even though the current conditions of the world economy is not good, people were interested in learning about and acquiring US softwood products. During the tradeshow there were all kinds of attendees, but it can confidently be said that 50% were lumber distributors (basically requesting Ponderosa Pine and SYP); 40% were furniture manufacturers (whom uses Mexican as well as US, Chilean and Peruvian lumber); the remaining 10 % were either architects or engineers that specify lumber for construction purposes and for exterior uses, mainly polin, (3x3 - 8 foot poles) timbers, structural lumber and plywood.  It is worth to mention that some furniture manufacturers requested particle board and MDF, and that Ponderosa Pine and SYP (for furniture, moldings, pallets , packaging ,different structural and exterior uses) were the species most requested.
 
 
Japan Housing Starts
Housing Starts Increase 3.1 Percent in 2008
Housing starts in Japan increased by 3.1 percent to 1.093 million units in 2008, mostly due to the reduction in starts in 2007 when changes were made in the Building Standard Law.  2x4 starts increased 9.3 percent to 107,707 units and were the highest on record, eclipsing the record of 105,390 units in 2006.  Following world trends, housing starts in December 2008 were down 5.8 percent compared to the same time last year to 82,197 units. High rise steel and concrete condominiums increased 5.9 percent to 29,003 units in December 2008.  Wooden starts were down 11.5 percent to 42,342 units, 2x4 starts were down 6.4 percent to 10,311 units, post and beam starts were down 13.3 percent to 42,342 units and wooden prefab declined 8.6 percent to 1,562 units. The seasonally adjusted annual housing starts were 1.001 million units and the share of wooden housing starts was 51.5 percent of total starts in December 2008.
 
 Wooden Starts     (January to December)

TYPE                               2008            2007       Change

Total                         516,868      504,546    102.4%   
Single Family                     261,955        257,556    101.7%
Rental Units                       142,717        128,257    111.3%
Company Housing                  1,655        1,487       111.3%
Speculative Housing            110,541        117,246     94.3%
 

 
 2x4 Starts (January to December)
TYPE                             2008           2007         Change
Total
                            107,707       98,555          109.3%
Single Family                 29,615        27,743         106.7%
Rental Units                  60,998         51,718          117.9%
Company Housing              112              151            74.2%
Speculative Housing      16,982           18,943          89.6%
Northern Europe Market
by Eddie Pearce
 
 January 2009, for the timber trade across Europe has shown to be a very slow start. With building and construction of housing at a virtual standstill, there has been a very significant downturn in demand for timber and timber products.
 
The Swedish timber industry reported a reduction in sawn timber production by 7.5% to 17.5million m³ in 2008.A similar situation also exists in Finland where sawn timber production was down by 20%. In both cases this a reflection of the downturn in demand for sawn timber across the world not just Europe.
 
Although the Swedish sawn timber producers are exporting less to Europe, USA and Japan, they are increasing exports to a number of African countries such as Egypt and Libya and also to the Middle East fairly successfully. This is in direct competition to American softwoods where increased exports have been recorded.
 
United Kingdom:
In the UK softwood imports have dropped by 31% in 2008 to 5.51million m³ compared with 2007 at 7.946 million m³. Unfortunately, the forecast for 2009 is for even lower import volumes.
 
This is reflected by the fact that housing levels in the UK dropped by 43% in 2008 and the forecast for housing is for  a further reduction in the number to be built in 2009.
The only positive aspect for the building and construction industry in the UK are the 2012 London Olympics where there will be an increasing demand for timber and timber products  as it starts to build all the accommodation buildings, which has as yet not yet begun.
 
Germany:
The renovation sector of the building industry in Germany has helped to keep the window industry very active, even though the level of house building continues to fall. However, commentators in the industry do not think this level of activity will continue into 2009.
 
A number timber producing companies have announced that they will be extending the periods of shut downs already planned. This is in direct response to the level of demand for sawn timber.  The German sawmilling industry, as a whole, is anticipating a reduction of up to 30% of sawn timber production volumes.
 
France:
The level of new housing that were built in France fell by 18% for the year ending in October 2008. According to the Ministry responsible for housing indicated that this trend is to continue in 2009. This will impact the timber industry which is already seeing a downturn in demand for sawn timber.
 
Severe storms hit southwest France during  January affecting very badly the Maritime pine forest along the coast of this part of France. The level of impact on the sawmilling industry in this region has not as yet been determined but first indicators are that they could be significant.  As a consequence, the demand for Southern Pine could possibly increase.
 
The Benelux Region:
This region is also going against the trend with continued increases in demand for American softwoods with both Douglas fir and Southern Pine benefiting.
 
Other Markets
American Softwoods continues to be active with its presence in the UAE, the Middle East, North Africa and India to ensure these markets continue to import US softwood products. To this end American Softwoods will be participating in a number trade shows in Dubai, UAE and Delhi, India during this program year.




 
MadeExpo 2009
By Ignacio Martinez
The event, hold every year since 2008 in Milan, is Italy's largest show for the timber and woodworking industries, attracting more than 75,000 visitors over the course of four days. The trade show is the largest opportunity to gain visibility among the architects and designers, window and door manufacturers and carpenters in Italy. This show offers an excellent opportunity to outline the quality features of the American products, with special remarks on the environmental aspects.
 
 This first participation at this show has been very instructive for several reasons:
·        The large visitors traffic that this city secures.
·        A noticeable number of architects and design professionals touring the exhibition
·        Not less, appreciable amount of carpenters and wood industry people attracted.
     
The high numbers of visitors provide with ample samples about the current situation of both the economy and the industry in general. In broad terms, the current economical situation in Italy is bad, but compared with other countries around shows a reasonable level of activity. However, the numbers of industries that are announced to take measures to weather the difficulties are increasing. According to some visitors, the upswing change in Italy is delayed to just two months ahead. Right now, it is more a question of the winter stop than the general situation, at least in the construction sector.

 
The presence of wood products in interiors is important through the exhibition. It is predominant the proposal of value added products and components, but also finished products: from staircases to window frames. Therefore, this exhibition  is very well adapted for industries manufacturing this type of products beyond sawn wood. Any type of components like steps, glued panels, finger jointed stock, window blanks and a large list of joinery products may find easy accommodation at MadeExpo.

Upcoming Trade Shows and Seminars 


 

February

  • Delhi Wood Show, Feb 12-15, New Delhi 
  • KH Housing Fair, Feb 18-23 Seoul
  • WoodMac China, Feb 17-20 Shanghai

March

  • Interzum Guangzhou, March 27-30 Guangzhou
  • A+C Show, March 3-6 Tokyo

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
 
  • Tecno Mueble June 4-6
September
  • FMC China September 9-12 Shanghai 


 

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