Competition in the UK hardwood market between US and Eastern suppliers is set to become more intense.
This is the prediction from Rupert Oliver, editor of Hardwoodmarkets.com.
Speaking at the London Hardwood Club, Mr Oliver said the US remains the global hardwood giant with an annual harvest of 170 million m3 and lumber production of 32 million m3, compared with 31.7 million m3 and 6.7 million m3 for all eastern Europe, excluding Russia. The Americans also have more species and sophisticated marketing via the American Hardwood Export Council.
However, said Mr Oliver, the eastern European exporters are making headway.
“Their impact was restricted to Germany and Italy. However recently it has extended into the U.K., Spain and France.” He attributed this to increased political stability and confidence-boosting inward investment in the timber sector .
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“American hardwood suppliers will remain dominant, but will have to cut costs, maintain their lead in efficient distribution, and exploit their species range. They may also have to tackle EU trade barriers dressed up as environmental legislation” |
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Rupert Oliver, editor Hardwoodmarkets.com |
Because of low domestic consumption, eastern Europe also has more hardwood to export and its total last year of 2.5 million m3 was just 300,000m3 short of the Americans’.
Mr Oliver predicted that eastern European consumption would rise. But this would not necessarily mean a less competitive market in the UK. More eastern European exports of finished hardwood products and components were likely to depress UK hardwood lumber consumption.
The eastern Europeans’ large state owned forests are also better adapted to rapid eco- certification than those in the US where ownership is much more fragmented.
Mr Oliver concluded that the Americans will remain dominant international hardwood players; ” but will have to cut costs, maintain their lead in efficient distribution, and exploit their species range. They may also have to tackle EU trade barriers dressed up as environmental legislation.”
