Global wood market and Made in China
European timber exports are expected to be halved
In the past decade, Europe's share of timber exports has expanded from 30% to 45%; in 2021, Europe had the highest sawexport value among continents, reaching $321, or about 57% of the global total. As China and the United States account for nearly half of the global timber trade, and have become the major export regions of European timber producers, European exports to China are increased year by year. In general, with Russia, a big supplier of timber, the European timber production before this year can meet its own needs, while its share of exports has even maintained a certain growth rate. However, the development of the matter has reached a turning point in the tension between Russia and Ukraine this year. The most immediate impact of the Russian-Ukraine incident on the global timber trade is the supply reduction, especially for Europe. Germany: Wood exports fell 49.5 percent year on year to 387,000 cubic meters in April, Exports rose 9.9% to US $200.6 million, Average timber prices rose 117.7% to US $518.2 / m 3; Czech: Overall timber prices peaked in 20 years; Swedish: May timber exports fell 21.1% year on year to 667,100 m 3, Exports rose 13.9% to US $292.6 million, Average prices surged 44.3% to $438.5 per m 3; Finland: May timber exports fell 19.5% year on year to 456,400 m 3, Exports rose 12.2% to US $180.9 million, Average price rose 39.3% to $396.3 per m 3; Chile: June timber exports fell 14.6% year on year to 741,600 m 3, Export value surged 15.1% to $97.1 million, Average price rose 34.8 percent to $130.9 per cubic meter. Today, Sweden, Finland, Germany and Austria, the four major European cork and wood producers and exporters, have reduced their exports to areas outside Europe to meet local demand first. And European timber prices have also seen unprecedented increases, and continue to face huge upward pressure for several months after the outbreak of the Russia and Ukraine incident. Europe is now in an inflationary environment, with high transport costs and catastrophic wildfires together suppressing the supply of wood. Despite a brief increase in European timber production due to early harvest due to bark beetles, it remains difficult to expand production and European timber exports are expected to halved to maintain the current supply and demand balance in the market. The ups and downs of timber prices and the supply constraints facing the major timber export regions have brought great uncertainty to the global timber trade and made it increasingly difficult to balance the supply and demand in the global timber trade. Returning to the domestic wood market, in the current market demand is slowing down, the local inventory still maintains a high level, the price is relatively stable. Therefore, in the case of domestic demand is still mainly rigid demand, in the short term, the European timber export reduction on China's timber market impact is not big.