UK demand boost EU imports of softwood plywood

Source:
ITTO
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In the first six months of 2014, EU28 imports of softwood plywood were 898,000 cubic metres, 17% more than the same period the previous year. Imports from Brazil increased 19% to 657,000 m3 in the first half of 2014. There was also a 26% rise in imports from China to 97,400 cubic metres, and a 5% increase from Chile to 72,300 cubic metres.

Much of the gain in imports was due to improving market conditions in the UK. However imports also increased into Belgium, Italy, Denmark and the Netherlands in the first half of 2014. Imports into Germany and France have been weaker this year.

A large proportion of softwood plywood imported into the EU each year arrives in the first quarter as importers rush to benefit from the annual duty free quota of 650,000 cubic metres. This year there was a particularly strong surge in imports in January, but imports slowed dramatically in February and only recovered a little ground in the March to June period.

While consumption of softwood plywood has been good in the UK this year, disappointing construction activity in the spring months in other European markets has weakened demand elsewhere. European importers have been resistant to the higher prices asked by Brazilian exporters following rapid appreciation of the real exchange against the dollar in the first four months of this year.

Brazilian exporters have also faced higher log, energy and wage costs this year. In previous years, Brazilian suppliers have lowered prices for softwood plywood in Europe by an amount equivalent to the 7% duty rate once the duty-free quota is used up. However this year they have had little incentive to reduce prices to European buyers at a time of robust demand in North America.

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