hardwood business in Europe is back to growth after a more challenging past 12 months.
2015 did see an overall decline in sawn hardwood exports to the market, after a robust 2014, by value dipping 9.9% to US$277m, and 11.1% by volume to 348,100m3. This was against a backdrop of a sharp weakening of Europe’s currencies against the dollar and slow post-recession growth in key European economic sectors, such as construction and furniture.
But in the first two months of 2016 there were encouraging indications of a rebound. Total US sawn hardwood exports to Europe were 56,500m3 to the end of February, 13% up on the same period in 2015, while value increased 7.7% to $43.6m.
The numbers are comparable to those for the start of 2014, which was significantly better for US hardwoods in Europe than last year.
Export trends in the UK drove 2015’s US sawn hardwood export European downturn, with the total down to 93,000m3 from 105,000m3 in 2014. And, bar walnut, which showed the sixth consecutive annual export rise, the contraction was across all main species. That included white oak (which accounts for over half the UK’s US imports), tulipwood and ash.
But exports to the UK and Ireland have started this year particularly well, indicating a return to 2014’s buoyancy, with both taking good volumes of white oak and tulipwood. And Ireland has been a story of continued growth now for two years. After a rise of 28% in 2014, its US sawn hardwood imports increased another 11% to 14,200m3 in 2015. A slight drop in white oak was offset by gains in other species, particularly tulipwood, red oak and ash.
Also after growth in 2014, Germany’s US hardwoods imports fell 14% to 42,800m3 in 2015. The weak euro was an issue, and German timber trade federation, GD Holz, reported that buildings and joinery sales rose 5%, but sawn timber fell 5% and wood product sales overall stagnated. But 2016 is looking better here too, with good gains in US tulipwood imports.
Meanwhile France’s white oak imports also rose in the first two months.
The continuing poor performance of US hardwood exports to Italy does remain a concern. Last year they were 64,500m3, 23% less than in 2014 and under half 2010 volumes. Export value declined 22% to US$43.3m. Tulipwood fared worst, although still accounted for over half the total export volume. White oak, ash and red alder also declined, but walnut and red oak were up slightly. There were a number of contributory factors for the overall fall, including government austerity measures, lack of liquidity and bank lending, unemployment, and a depressed construction and furniture sector. All combined to make Italy one of Europe’s weakest economies. And in the first two months of 2016, compared to the same time in 2015, US hardwood exports fell a further 7% to 9,300m3. This drop was different, however. It was concentrated in ash, implying that introduction of tougher EU plant health regulations for control of Emerald Ash Borer (EAB) infestation from January 1 may have been a factor.
Further evidence for this was that total U.S. ash exports to the EU were 3,500m3 in January and February 2016, 25% less than the same period last year. And since some continued to arrive in January under the old regulations, US ash exports to Europe are likely to fall further, until such time as the European Commission accepts the systems approach for EAB.
Other European US export trends last year were mixed. After growth in 2013, Portugal’s slow economic recovery saw its US hardwood imports fall in 2014 and a further 17% last year to 15,000m3.
Sweden’s sharp import rise in 2014 was followed by a 4% fall to 14,400m3 last year. The weak Swedish krona may have been implicated, but a rise in white oak imports and the fact the decline was mainly in ash, suggested phytosanitary rules were a more significant factor here too.
And Spain’s US hardwood imports jumped 41% in 2014, and another 33% to 47,300m3 in 2015, with value up 28% to US$38.5m. White oak accounted for 81% of volume but red oak and ash rose to 2,427m3 and 1,619m3 respectively.
