KUCHING: The European Union (EU) has reported a 29 per cent drop in the value of imported tropical wood and wooden furniture products to US$1.73 billion in the first six months of 2023 (6M2023) from 6M2022.
In terms of imported volume on these products, it fell by 18 per cent to 838,900 tonnes during the same period.
The scale of the decline in the trade in 6M2023 is partly due to imports being at historically high levels in 6M2022, particularly when considered in value terms, according to International Tropical Timber Organisation (ITTO) Tropical Timber Market Report (Sept 1-15, 2023).
In 2Q2023, EU imports of tropical wood and wooden furniture valued at US$831 million, which was down 35 per cent as compared to 2Q2022 and seven per cent less than 1Q2023.
This was in line with the 24 per cent decline in the imported volume to 410,000 tonnes in 2Q2023 from 2Q2022 and four per cent less than 1Q2023.
“The quantity of EU imports in both the first and second quarters this year was well below the long-term average of around 450,000 tonnes per quarter during the 2012 to 2019 period.
“Despite the steep fall this year, import value in both the first and second quarters was significantly above the long-term average of around US$800 million per quarter between 2012 and 2019, the period of relatively stagnant market conditions for tropical products that prevailed in Europe before the COVID crises.
“Overall, the trade data highlights that imports prices for tropical wood and wooden furniture products in the EU market remained relatively high in the first half of this year despite sharp falls in freight rates and declining consumption. This is in line with broader inflationary trends impacting on the EU market, particularly driven by high energy costs,” added the ITTO report.
The report said between January and June 2023, there was a year-on-year decline in EU import value of all tropical wood product groups, except logs.
Overall, the decline in import value was more severe for second and tertiary processed products than for primary processed products.
During 6M2023, there were large declines in the European bloc import value for wooden furniture from tropical countries (-39% to US$640 million); tropical mouldings/decking (-38% to US$146 million); tropical joinery products (-33% to US$104 million); tropical marquetry (-24% to US$48 million) and tropical flooring (-26% to US$32 million).
More moderate declines were recorded for EU imports of tropical sawnwood (-12% to US$409 million); tropical hardwood-faced plywood (-16% to US$100 million) and tropical veneer (-18% to US$97 million).
On the other hand, EU import value of tropical logs increased nine per cent to US$34 million during 6M2023.
In terms of EU destinations, import value of tropical wood and wooden furniture in 6M2023 was down year-on-year in all the main markets, except Spain where import value increased marginally (+0.3% to US$123 million).
On wooden furniture, the ITTO report said in 6M2023, the EU imported 143,000 tonnes of the products from tropical countries with a total value of US$640 million, down 32 per cent and 39 per cent respectively compared to 6M2022.
Import value decreased 38 per cent to US$275 million from top supplier Vietnam, down also 38 per cent to RM193 million from Indonesia, also down 38 per cent to US$115 million from India, a hefty decline of 52 per cent to US$37 million from Malaysia and down 35 per cent to US$11 million from Thailand.
On tropical sawnwood and mouldings, EU imports fell 15 per cent to 436,700 cubic metres (cu m) in 6M2023 from a year ago. Shipments from Congo jumped 12 per cent to 47,100 cu m.
The EU bloc recorded a 34 per cent drop in shipments of tropical sawnwood from Malaysia to 33,600 cu m in 6M2023.
On tropical logs, the ITTO report said in 6M2023, EU imported six per cent less in volume to 53,500 cu m against that of 6M2022. The most significant trend during the period under review was a 31 per cent increase in logs imports from Congo to 30,000 cu m.
“This surge in European arrivals — which was concentrated in the first quarter of this year — probably reflects a last-minute efforts to ship logs in advance of the log export ban imposed by the Republic of Congo from Jan 1 2023.
On tropical veneer, there was an 18 per cent decline in EU imports to 142,400 cu m in 6M2023. Shipments from Gabon, the largest supplier, plunged 20 per cent to 73,300 cu m.
In 6M2023, EU imports of tropical plywood stood at 134,200 cu m, unchanged from 6M2022. On tropical laminated products (wood flooring), Malaysia is the largest supplier to EU, with shipments of 5,700 tonnes in 6M2023 (out of the bloc’s 11,000 tonnes of imports).
“The consistent rise in EU wood flooring imports from Malaysia that began in 2020 has stalled this year. Imports of 5,700 tonnes from Malaysia in the first six months of 2023 were 13% less than the same period in 2022.”
The value of EU imports of other joinery products from tropical countries, which mainly comprise laminated window scantlings, kitchen top and wood doors, fell 33 per cent to US$104 million in 6M2023 from a year ago.
“In a potentially significant long-term development, given efforts in the country to shift up the value chain as log exports are banned, EU imports of laminated joinery products from Congo were valued at US$3.7 million in the first six months of this year, 140% more than during the same period last year,” according to ITTO.
