This is the key finding of a new report from Timbertrends looking into the origins and volumes of hardwood plywood into the UK.
From January-November 2006, Chinese import volume year-to-year was 274,400m3 – an increase of 75% over the same period in 2005.
The report says that, while the progress of imports from China since April 2006 “resembles a fairground ride”, it still meant they have taken a 33.7% share of the market.
While Chinese imports have been the big story, other countries have also fared well. Imports from Malaysia have increased 40,000m3 by volume or 29.2% in the year to date.
Brazilian volume was substantially higher in November 2006 than in the same month in 2005, reducing the shortfall in 2006 over 2005 to just 1,200m3.
But, despite seeing a better performance in October, imports of Indonesian plywood have suffered, with nearly a 50% decline in volume in 2006.
Nick Moore, the report’s author, expected no change in the market dynamics in the first part of 2007.
“The Chinese presence is solid and based on cost,” he said. “It’s a lot cheaper than the competition, and would take quite an effort to shake it off.”
However, he did think that there could possibly be a slow down in the growth rate of Chinese plywood imports.
“There are moves taking place to curb the import of Chinese products into the UK,” he said. “If the rate does slow, then the one real beneficiary could be Malaysia, providing it gets its environmental house in order.
“There’s no reason why it shouldn’t make inroads into the UK market.”
