world news - 26.08.2004
Sawn hardwood production in the UNECE region increased by 0.9% to just over 45 million m3 in 2003, compared with the previous year.
Sawn hardwood production in the UNECE region increased by 0.9% to just over 45 million m3 in 2003, compared with the previous year, due to increased domestic demand in the United States, a result of a buoyant construction sector and higher demand in central and eastern Europe for secondary processing.
In October 2003, the Timber Committee forecast an increase of about 6% for 2004, an assessment confirmed by market impressions for the first six months of the year.
Consumption of sawn hardwood in the region also went up in 2003, compared with the previous year, rising to just under 47 million m3, a gain of 3.3%. Both production and imports increased, while exports fell, due to a weakening in demand from Asian markets.
After three consecutive years of decline, with much of the production moving to central and eastern Europe, production of sawn hardwood in the EU/EFTA subregion stabilized in 2003 at 6.83 million m3.
Due to stabilization of the economic situation, as well as increased imports and decreased exports, apparent consumption of sawn hardwoods in the EU/EFTA subregion increased by 9.1% in 2003 compared with 2002, taking it back towards the peak level of 2000, around 12.3 million m3.
In contrast to the downward trends in 2001 and 2002, the hardwood flooring sector recovered its growth trend in 2003. The latest statistics available from the European Federation of the Parquet Industry (FEP) suggest that production amongst traditional member countries (i.e. not including four EU accession countries) rose by 5.6% to reach an all-time high of 65.8 million m2. If the new members of the FEP are taken into account, production in 2003 increased to 81 million m2, representing the same year on year increase of 5.6%. Growth in hardwood flooring production has been fuelled by confidence in the future of the market, as well as by growth in the remodelling market. Consumption reached 84.2 million m2 in 2003, a rise of 4.6% over the previous year.
Production of sawn hardwood in other European countries rose again in 2003 by 4.2% to around 8.7 million m3. Once again, continued growth in Romania's forest products sector drove this increase, while significant production increases in both Turkey and Latvia contributed to the overall growth.
While Romania has been focusing on investment (partly foreign) within its domestic forest products sector and improving the quality of its sawn hardwood production, Latvia, Lithuania and Estonia have all increased production and exports of sawn hardwood. Apparent consumption of sawn hardwood within the subregion rose by 3.6% in 2003, compared with 2002. The pace of growth in 2003 did not equal the consumption increase of 6.2% reported in 2002, due mainly to a rise in exports from the region.
CIS subregion production and consumption of sawn hardwoods are forecast to continue to rise slowly but steadily, as investment, infrastructure and general economic conditions improve.
US production of sawn hardwood increased in 2003, driven by domestic demand and increased demand for exports to the EU/EFTA subregion.
North American sawn hardwood prices rose significantly in 2003 and remained firm through the first half of 2004 as supplies struggled to meet demand.
UNECE/FAO
See also:
- — The privatization of Russian largest timber enterprises is not advisable: Federal Agency on Timber Sector
- — Finnish timber sector faces raw timber shortage
- — World pulp stores increased 10% in July 2004
- — Byelorussia reported timber cargo loading to the railway transport up 17.2% within 7 months in 2004
- — European consumers reduced pulp stores 5% in July 2004
