American Softwoods
4th QUARTER MARKET REPORT
FOR
NORTHERN EUROPE
September
– December 2001
OVERALL EUROPEAN SITUATION:
The economies of the EU countries continue to slow
down. Each country is showing a downward trend in timber consumption. This lower consumption is directly related
to the building and construction industries which are at a stand still or
running at a reduced level compared with last year.
The effect of this situation and the strength of the
Dollar, which continues to exist(although it has weakened slightly over the
last few weeks) has affected the level of timber imports from the U.S.A. into
EU countries. However, not all EU
countries have been affected by the same degree as can be seen in the individual
country figures described in this report.
However, nearly all the countries are affected by
some degree by the economical condition which prevails in Germany at this
moment of time and that is a
significant slow down.
Belgium-Luxemburg
Table 1
|
|
1997 |
1998 |
1999 |
2000 |
2001YTD |
2000YTD |
|
LUMBER(m³) |
27,890 |
18,602 |
17,511 |
11465 |
6400 |
8543 |
|
FLOORING(Tons) |
5860 |
7865 |
146 |
487 |
1334 |
N/a |
|
MOLDING(m) |
520,435 |
667,723 |
624,389 |
852,176 |
N/a |
678.989 |
|
LOGS(m³) |
1,156 |
735 |
1,423 |
1,706 |
16,092 |
247 |
YTD= August
Denmark
Denmark is one of the countries that is heavily influenced by prevailing conditions that exist in Germany. As its main trading partner Germany is a major customer for wood products that Denmark has to offer, ranging from furniture to flooring.
The figures in Table 2 show clearly that the trend that is occurring with timber imports from the U.S. resulting directly from its relationship with Germany.
Furthermore, it is not just the U.S. that is being affected because the Danish timber industry forecasts that overall softwood timber imports are for 2001 are likely to drop by about 10-12% and from all sources.
Table 2
|
|
1997 |
1998 |
1999 |
2000 |
2001YTD |
2000YTD |
|
LUMBER(m³) |
1,302 |
1,308 |
1,220 |
803 |
730 |
525 |
|
FLOORING(Tons) |
10,756 |
33,313 |
21,503 |
21,018 |
8,038 |
12.721 |
|
MOLDING(m) |
- |
- |
- |
- |
- |
- |
|
LOGS(m³) |
177 |
- |
684 |
37 |
373 |
37 |
YTD= August
Germany
As stated
in previous reports Germany is the powerhouse of the European economy and as
such influences many of the other countries activities.
During recent visits to various companies and
organisations in Germany the information gained from the discussions that were
had continues to confirm the poor economic situation in Germany and which
continues to have a profound effect on the building and construction industries
which in turn is affecting the timber industry.
Table 3 shows situation regarding exports to
Germany sofar during 2001.
Table
3
|
|
1997 |
1998 |
1999 |
2000 |
2001YTD |
2000YTD |
|
LUMBER(m³) |
63,257 |
52,477 |
44,117 |
27,352 |
6,579 |
23,557 |
|
FLOORING(Tons) |
6,608 |
9,400 |
12,850 |
15,133 |
4,841 |
10,668 |
|
MOLDING(m) |
572,347 |
120,369 |
159,408 |
28,267 |
- |
- |
|
LOGS(m³) |
1,843 |
1,208 |
6,055 |
8,078 |
24,478 |
3,597 |
YTD= August
This existing economic situation in
combination with the high strength of the Dollar which has prevailed for most
of 2001, has led to a position whereby the German timber trade is at
present buying on price.
Whilst the imports of US softwood species
have fallen, the US is not the only country to be affected. Imports from Sweden
and Finland are also showing a significant downturn at 31.42% lower and 31.91%
lower respectively. The only major
exporting country that has improved its position is Russia.
Table 4 shows the comparison of various
timber species used by the German window industry and it clearly shows how
competitively disadvantaged US species are compared with far eastern hardwoods
and European softwoods at present.
Table
4
|
Species & Prices for
Window Scantlings DM per m |
September 2001 |
August 2001 |
|
Meranti White Seraya Spruce One-piece slats Finger jointed Pine One-piece slats Finger jointed Larch Oak Hemlock Douglas fir |
6.20 – 6.80 8.00 – 8.60 8.00 – 8.60 5.40 – 6.10 7.00 – 7.60 5.30 – 5.80 10.50 – 13.00 18.20 – 19.80 9.80 – 11.50 13.50 – 15.00 |
6.00– 6.80 8.50 – 9.00 8.20 – 8.80 5.30 – 6.00 7.00 – 7.60 5.10 – 5.60 10.50 – 13.00 18.20 – 19.80 9.80 – 11.50 13.50 – 15.00 |
|
Sales prices to bulk
buyers, 72x 86mm, 3ply |
|
|
|
Source: EUWID |
|
|
With
regard to interior finishing products such as flooring, according to a major
timber agency in Hamburg Southern Pine is losing out against Honduran Pitch.
Again the reason is based on price.
Another
factor that has to be taken into account is the fact that the German production
of sawn softwood has over the last few years increased to such an extent that
they now produce in the region of 14million m³
themselves and this is obviously having an effect on the requirement of
timber
France
Although not as severe as the economic
situation in Germany, France is also slowing down and this is obviously having
an effect on the building and construction industries. This situation and the
fact that French domestic timber production has significantly increased,
particularly in the Pin du Landes region, producing a softwood which is not
unlike Southern Pine, has affected the demand for Southern Pine simply due to
the fact the French product is more competitively priced. Douglas fir imports from the US have been
severely affected by the French produced Douglas fir, again for the reason as for Southern Pine. Table 5 shows the US export levels to France
up to August.
Table 5
|
|
1997 |
1998 |
1999 |
2000 |
2001YTD |
2000YTD |
|
LUMBER(m³) |
12,250 |
11,884 |
29,832 |
26,677 |
2,617 |
22,277 |
|
FLOORING(Tons) |
782 |
- |
2,488 |
1,573 |
3,672 |
- |
|
MOLDING(m) |
- |
24,934 |
- |
228,196 |
7,894 |
228,196 |
|
LOGS(m³) |
1,449 |
2,572 |
3,997 |
7,598 |
4,588 |
4,381 |
YTD = August
Ireland
Ireland is now beginning to
suffer the consequences of their economic success in so much that the boom in
new housing construction has slowed down.
This is due to the fact that house prices have risen so dramatically
over the last few years, particularly in the Dublin region it has reached a point where it has become
more difficult to find affordable housing particularly for the lower income
members of the population.
As a result this has affected demand for all
the types of product which Southern Pine is used for. eg stairs, windows, kitchen furniture and
interior finishing products such as skirting boards.
There is still a considerable demand for
housing in Ireland and it is estimated something like 50000 houses will be
needed over the next 10 years and discussions are going as to how this can be
best achieved.
Therefore on the horizon there will be
opportunity for the demand for US softwoods to increase again but this will
only be achieved if it is competitive compared with all the timber coming from
the other exporting countries.
Table 6 shows the position as of August
2001.
Table
6
|
|
1997 |
1998 |
1999 |
2000 |
2001YTD |
2000YTD |
|
LUMBER(m³) |
5,109 |
7,290 |
6,440 |
6,326 |
3,640 |
4,343 |
|
FLOORING(Tons) |
16,578 |
35,058 |
15,925 |
15,140 |
20,874 |
12,560 |
|
MOLDING(m) |
475,928 |
- |
- |
- |
33,334 |
N/a |
|
LOGS(m³) |
36 |
595 |
467 |
1,464 |
247 |
1,343 |
YTD = August
The United Kingdom
The UK is now also
feeling the affects of a slowdown in the economy. However, so far it does not
appear to be as severe as in Germany. The
number of new houses being built has flattened off but the refurbishment and
renovation activity is very strong as is reflected by the amount of added value
products such as flooring and molding that has been imported by the UK so far
during 2001.
Table 7 shows the
export levels that have occurred up to August.
Table 7
|
|
1997 |
1998 |
1999 |
2000 |
2001YTD |
2000YTD |
|
LUMBER(m³) |
25,726 |
25,033 |
24,398 |
21,143 |
11,101 |
17,170 |
|
FLOORING(Tons) |
42,550 |
62,148 |
90,336 |
129,594 |
139,854 |
58,383 |
|
MOLDING(m) |
294,742 |
726,741 |
92,141 |
160,615 |
287,967 |
17,061 |
|
LOGS(m³) |
4,015 |
2,662 |
684 |
4,134 |
2,550 |
3,734 |
YTD= August
The decking
market continues to be of considerable value in the UK.
From the
discussions that have been had with the major deck installers using treated
Southern Pine their forecast based on their analysis of the deck market
conditions and their own order levels is that they anticipated a growth in the
region of 10-15% over last year’s activity.
The Netherlands
There has been a
significant increase in the level of window joinery production which is in line
with the fact that new house construction in the Netherlands has been running
at higher levels than compared with the same period in 2000.
This situation
is of benefit to Douglas fir because as a preferred species in the manufacture
of windows the amount of this species increases as a proportion of the total
windows manufactured.
Although the
level of sawn softwood has risen during 2001, the more significant change has
been in the volume of Douglas fir and California Redwood. Unfortunately
Southern Pine is still losing out to Honduran Pitch Pine.
However, added
value products such as flooring and moldings have increased significantly
compared with the same period last year.
Table 8 shows
the present position of U.S. exports to the Netherlands
Table 8
|
|
1997 |
1998 |
1999 |
2000 |
2001YTD |
2000YTD |
|
LUMBER(m³) |
13,138 |
12,673 |
10,551 |
9,825 |
11,373 |
6,973 |
|
FLOORING(Tons) |
12,905 |
4,329 |
862 |
- |
9,695 |
- |
|
MOLDING(m) |
164,588 |
106,215 |
43,974 |
- |
41,721 |
- |
|
LOGS(m³) |
532 |
838 |
447 |
226 |
835 |
159 |
YTD = August
However it must be borne in
mind that if the situation does not improve in Germany these figures could show
a turn in the next quarter because the German market is a major customer for
the Dutch timber trade.
ENQUIRIES:
The UK Office receives enquiries from all markets in
Northern Europe.
Since the last report, the UK Office has received
the following number of enquiries covering the period APRIL – JUNE 2001:
FLOORING: 37
STAIRS: 7
KITCHEN
FURNITURE: 6
WINDOWS: 13
DOORS 22
INTERNAL
CLADDING: 8
GARDEN
LANDSCAPING: 4
TIMBER
FRAMES: 8
PURPOSE
MADE PRODUCTS: 4
GENERAL: 4
TOTAL: 113
The type of enquirer was also recorded and the
results are as follows:
Private individuals: 55
Architects: 38
Building consultants/contractors: 34
Interior Designers: 10
Landscapers : 1
As reported in the previous quarterly reported the
total number of enquiries received during this period is a direct result of the
increased PR activity which was put into place in the beginning of April by our
PR agent SPA PR. This activity consisted of a mixture of editorial articles and
press releases. In order to determine
how effective the PR activity has been the following is a list of the
publications in which placements were made and the number of enquiries received
from those publications:
Street,
Landscape & Play: 19
Building: 14
Architects
Datafile: 75
Housebuilders/Developers: 13
Landscape and Amenity: 56
Building Homes: 17
Whats New In Building: 43
Manor Creative:
2
Project Housing:
3
What’s In Building 18
New Build: 8
General : 23
TOTAL: 291
Earlier this year the American Softwoods website www.americansoftwoods.com
was launched and the following hits have been recorded:
JANUARY: 124
FEBRUARY:
167
MARCH: 2,732
APRIL : 3,234
MAY: 9,263
JUNE: 7,286
JULY:
5,759
August: 6,810
September: 9,188
October: 12,206
As can be seen from these figures the web site
continues to attract a growing number of visitors.
ACTIVITIES CARRIED OUT DURING SEPTEMBER –
DECEMBER 2001
September 5 – 8: Attended and gave a
presentation at the AGM of the Western European Institute of Wood Preservation
in Istanbul, Turkey.
September 19 –
21: Attended the Annual
Meeting of the NELMA in Rockport, Maine and gave a presentation on market
opportunities for Eastern White Pine in Europe
September 22 –
25: Attended Annual meeting of
the SFPA in Savannah, Georgia
September 4: Attended the AGM of the
Timber Decking Association.
October 10: Attended the BSI
Committee B/518
October 25: Held meeting with
Jim Robbins, Robbins Lumber
October 31: Attended Hout
Dag(Wood Day) in Schiedam, the Netherlands
November 1: Trade service visits
to G P Europe, Breda, the Netherlands
and C. Leary Timber Agents, Antwerp, Belgium
November 7 –
10: Denise McMullen
attended and assisted Madrid office at Maderalia, Valencia, Spain
November 21: Attended TRADA meeting
in Birmingham
November 27: Trade service visit to
the German Timber Federation in Wiesbaden and had discussions with Dr. Peter
Sauerwein, Director of the Federation.
November 28: Trade service to
the German Woodworking Federation in
Bad Honnef and had discussions with Herr Manfred Baums
November 29: Meeting
held with Stephan Speitkamp , German PR agent in Herzogenrath, nr Aachen to
discuss future activities for Germany
November 30: Meeting with Jeff Jones,
Agricultural Trade officer, in Hamburg
Trade
service to Jacob Jürgensen
Timber Agents in Hamburg and had discussions with Andreas von Möller, Managing Director