Europe – The EU has adopted the first-ever law to set legally binding restoration targets for the long-term recovery of natural habitats in Europe. A final vote was held at the Environmental Council recently, and the law passed when a narrow majority of 20 countries voted in favor of implementation. Those 20 countries represented 66 percent of the EU’s population and the threshold for approval by a qualified majority is 65 percent.
To remain compliant under the new law, Member States are required to restore at least 30 percent of habitats covered by law from “poor” to “good” condition by 2030 and 90 percent by 2050. Once restored under the definition of the law, states are required to take necessary steps to prevent future deterioration. Habitats that fall under the scope of the new regulations include forests alongside grasslands, wetlands, rivers and lakes.
Allowances were made for the farming sector. Writers of the deal embedded an “emergency brake” that would allow for the suspension of actions targeting farming “under exceptional circumstances” if such actions have the potential to threaten food security.
The ordinance introduces critical new safeguards to protect remaining old-growth forests. Member States must set aside additional forests for restoration and take additional steps to improve the biodiversity of forests managed for lumbering.
Although Europe’s total tree coverage has increased slightly over the past 20 years, recent analysis of satellite data completed by the World Resources Institute (WRI) supports the timeliness of the Nature Restoration Law.
According to the WRI’s analysis, “Europe’s forests face increasing pressures. Impacts include fewer tall forests, climate change-induced wildfires, insect outbreaks, and, most recently, increased wood harvesting to meet additional demand for ‘home-grown’ biomass in response to the Ukraine war and changing energy demands.”
Ghana – A report from the Timber Industry Development Division (TIDD) said that first quarter 2024 export volumes and values were each down approximately 13 percent from where they were during the same period in 2023.
Speculation about the decrease pointed toward a weakening in demand, the unavailability of raw materials for production and the impact power outages had on production.
The report showed that Ghana grossed 29.31 million EUR from the export of primary, secondary and tertiary wood products over the first three months of 2024.
Primary products made up 56 percent — 16.52 million EUR — of the total value of exports between January and March 2024 and around the same percent over the same period in 2023, according to the data provided by TIDD. Secondary products made up the second largest percentage and represent 39 percent of the share of exports.
Primary products exported to Asia included sawnwood, Teak logs, billets, boules, kindling and roll board. Secondary products included plywood, veneer and briquettes. Products that are considered “tertiary” included mouldings and dowels.
Asian markets continued to be the top destination for Ghanaian wood product exports — 40,149 cubic meters over the first quarter of 2024 — with India, Vietnam and China being key markets.
Europe continued to be the second most likely destination for Ghana’s wood products. Down from 24 percent during the first quarter of 2023, European destinations accounted for 20 percent of Ghana’s overall export during the first quarter of 2024. Key European markets include Belgium, Germany, UK, France and Denmark.
Products exported to Europe included sawnwood, veneers, and mouldings produced from Eucalyptus, Papao, Dahoma, Kako, Chenchen, Niangon, Sapele, Odum, Guarea, Asanfina, Koto and Ananta.
Regional African markets were the third most likely destination for Ghana’s wood products.
Vietnam – In May 2024, wood and wood product exports (W&WP) earned Vietnam $1.25 billion, according to data available at press time and provided by the Vietnam Office of Customs. Down 14 percent from April 2024, earnings are up 18 percent from the previous May. Wood products (WP) accounted for $812 million (of the overall $1.25 billion) and were down 14 percent compared to April 2024 but saw a six-percent increase over the previous May.
Over the first five months of 2024, W&WP exports to the US totaled $6.1 billion and represented an increase of 24 percent from the same period in 2023. Of that overall figure, WP exports earned $4.16 billion — a 23-percent increase over the same period in 2023.
In May 2024, W&WP exports to the US garnered $710 million — eight percent less than in April 2024, but 13 percent more than in May 2023. Wood and wood product exports to the US grossed $3.4 billion over the first five months of 2024 for an increase of 27 percent over the same period in 2023.
Vietnam also experienced fluctuation on the import side. In May 2024, W&WP imports were valued at $250 million for a seven-percent increase over April 2024 and a 16-percent increase compared to May 2023. Vietnam spent $1.02 billion on W&WP imports during the first five months of 2024 for a 20-percent increase over the same period in 2023.
In the first five months of 2024, the volume of Tali imports was down 31 percent from the same period in 2023. This decrease drove a 39 percent reduction in value over the same period in 2023. April 2024, however, saw an eight-percent increase in volume and a seven-percent increase in the value of Tali imports over April 2023.
Brazil — According to Fordaq, exports of Brazilian wood-based products (excluding paper and pulp) grew from $328.3 million in May 2023 to $337 million in May 2024 and represented an increase of nearly three percent. This was the most recent data available at press time.
Conversely, Brazil experienced a 14-percent decrease in the value of Pine sawnwood exports between May 2023 and April 2024 — from $74.5 million in May 2023 to $64.1 million in April 2024. In terms of volume, Pine sawnwood exports decreased 11 percent over the same period from 306,300 cubic meters to 271,300 cubic meters.
The volume of tropical sawnwood exports decreased by 18 percent in volume and 36 percent in value in May 2024 ($9.6 million) compared to May 2023 ($14.9 million).
The value of Pine plywood exports increased 20 percent in May 2024 ($76.5 million) compared to May 2023 ($63.8 million). In volume, exports increased 11 percent over the same period, from 195,900 cubic meters (May 2023) to 217,100 cubic meters (May 2024).
Tropical plywood exports increased nine percent in volume and 11 percent in value in May 2024 (3,500 cubic meters) compared to May 2023 (3,200 cubic meters).
India – The Indian market was turbulent thanks to a rise in sea freight and global logistics issues. Rising container and logistics delays — including from Vietnam — contributed to supply shortages in the Indian plywood market. The cost of sea freight, coupled with the rising cost of chemicals globally, pushed container costs to $2500, the highest they had been since COVID 2020.
The last week of May saw the landed price of 16mm imported plywood increase by 10-to-12 percent in Delhi and eight percent in southern Indian markets. Plywood importers also reported a hike of Rs 5.50-6.50 per square foot on 18mm plywood.
Similarly, the cost to import and export MDF rose, but the impact across the market is still to be seen. Tough competition and limited supply inside the MDF sector were expected to further affect the cost of plywood and imported calibrated plywood.
The increased cost of imported panels offered relief to some Indian producers as this change provided them a level playing field; however, the cost of imported core veneers increased by 20 paise per millimeter.
Dealer inquiries from Indian companies increased over the first weeks of July. Plywood manufacturers from Bareilly, Yamunanagar, Visakhapatnam, Rajasthan and Gujarat reported that the demand for calibrated 16 mm also increased.
It’s reported that sea freight and supply chain issues are not going to ease for the next 3-4 months or until there is a resolution to the global turmoil.
