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European Report - Barriers And Opportunities For EU Deforestation Of Hardwood
Jan 18, 2019

  The hardwood importers surveyed said in December that the status of cross-border trade is satisfactory and cautiously optimistic. Will remain until 2019. However, various issues have caused concern.

A concern is the impact of the UK’s departure.

It is scheduled to be issued from the European Union on March 29, 2019. Not only is the UK one of the largest direct importers of tropical and temperate hardwoods in the European Union, it is also an international trader on the European continent. Importers are concerned about the potential impact of Brexit.

“The lack of clarity in the Brexit overall is also a “headache,” says a hardwood importer in continental Europe.

“Businesses don’t like uncertainty.” European importers have also reported a range of supply and year-round availability issues, particularly in the tropics, as well as ongoing trade, which has also attracted attention.

The consequences of China’s tariff on US hardwoods.

On the positive side, the main driver of the market is the continued prosperity of the overall economy, especially the continued strength of the construction and real estate sectors, which in turn supports consumer confidence.

The European Union's General Administration of Economics and Finance EFA lowered its forecast for the EU, economic growth this year and next year. The 2018 European economic forecast was published in the fall, and in November it said that this year's gdp growth was in November. It is expected to be 2.1%, compared to 2.4% in 2017. It is expected that EU GDP growth will further slow down in 2019, and it has dropped to 1.9% before “stable relaxation to 1.7%” in 2020. A more moderate outlook can be attributed to “the existence of a number”. However, the EFA projections point out that the EU is still entering its sixth consecutive year of growth. And added that the driving force of domestic economic growth should be enough to keep economic activity growth and unemployment fall.

“The improvement in the labor market, wages have increased slightly. Some members have grown and expanded fiscal measures. The state should also help to maintain consumption next year.” The latest outlook confirms the perspective of education for all. According to the European Construction Company, the growth in construction and construction industry reached its peak in 2017, reaching 4.1% in the 19th century. It covers the European countries. However, this year's growth has slowed down, and overall growth is still expected to be 2.8%. It is expected that there will be an annual increase of 1.6% to 2021 from 2019.

Hardwood traders in several EU countries have noted continued strong demand from customers in the construction and related industries. The construction industry in the Netherlands is said to be particularly buoyant, but other places have reported that sales of construction products are as follows: rising. “Construction works are still far below the level before the collapse in 2007. So there is room for further growth.” Hardwood importers said. “There is a huge potential demand especially for housing.” The flooring sector and general joinery, especially the production of doors, windows, stairs and moulds, have exceptionally strong hardwood consumption. “And most joiner customers reported all orders outside of Christmas.” An importer dealer said.

EU sawn timber imports increased by 4%

Import statistics. According to an independent analysis of the data provided by the Eurostat's Eastern and Southern African Common Market for the International Tropical Timber Organization, the EU's total sawn timber imports increased by 4% in the first nine times. The months of 2018 were 1.62 million cubic meters. Tropical wood leads 7% to 720,000 cubic meters and temperate hardwoods increase 2% to 900,000 cubic meters.

In terms of supply countries, the strongest growth from January to September came from Indonesia. Despite the relatively low base, sawn timber imports from the EU in Indonesia increased by 75% to 17,600 cubic meters. Full sawn timber Indonesia has been granted FLEGT license to export to the EU. From November 2016, everything must be S4 as a rough saw and the exit is banned.

In addition, Gabon’s economic growth has also been strong, rising by 22% to 88,200 cubic meters. Brazil grew 19% to 91,300 cubic meters. Malaysia, up 10% to 121,600 cubic meters.

Among the temperate species, the EU imported the most from the United States, with external suppliers, in the first quarter, 247,200 cubic meters. Imports in the nine months of the year increased by 39%. 7%, 139,200 cubic meters from Russia; 68,200 cubic meters from Serbia. However, imports from Ukraine fell 10% to 215,000 cubic meters, down 8% from Belarus and 47,000 cubic meters.

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