Business Trends Abroad

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Central and West Africa – Over the past few weeks, the timber industry in the Central African Republic has faced significant challenges due to widespread heavy rain that has interrupted harvesting and transportation, according to the most recent data available at press time. For an extended period, almost no logs have been delivered to the Port of Douala primarily because of the washed-out roads.

After a surge of interest, the market for Sapele has weakened, leading mills to reduce production.

Cameroon – Cameroon’s timber sector is facing challenges brought on because of new regulations from the government and by continuous heavy rain that has delayed harvesting, production and transport.

Some mills are shifting their focus to Azobé, moving away from redwoods previously exported to China and Europe. While demand for Azobé remains stable, issues with recent shipments of low-quality timber are causing problems in some European markets, according to the most recent data available at press time.

Gabon – Gabon is also experiencing the effects of heavy rain. For a period of three dry days mid-December, sawmills in upcountry regions rushed to transport their sawnwood stocks.

However, key routes, such as the roads from Okondja and Makokou through Lastourville, were still in poor condition with trucks taking up to three days to cover the 650-kilometer distance to the Port of Owendo in Libreville.

The proposed increase in land tax has not been implemented, following strong opposition from syndicates and operators who lobbied the Ministry of Forestry. The negative market situation has led to reduced production and worker layoffs at a time when the new government is encouraging investors and operators.

December is traditionally a half-production month and with China currently out of the market, some mills are closed or cut back operations, according to the latest information available at press time.

Republic of Congo – The ongoing shortage of petrol and diesel continues to create complex challenges for both private individuals and industries, especially those not connected to the national grid.

Production of sawnwood and veneer remains slow- exacerbated by heavy rain and difficulties in log supply. In regions around Pointe-Noire, road conditions are better when dry, as most main roads are paved though travel on forest roads remains a challenge. It is estimated that Okoume mills are operating at approximately 50 percent capacity due to diminished demand from China, according to the most recent data available.

Producer observations on market developments – The Chinese market remains very quiet. Buyers in the Philippines continue to purchase Okoume, redwoods and Dabema, maintaining a steady demand. In Vietnam, the market remains strong for Tali with robust purchasing activity. In India, there has been a noticeable slowdown in purchases of veneer and Padouk sawnwood.

There has been a substantial reduction in Padouk exports to Belgium and India. This decline is attributed to increased domestic market consumption and the need for exporters to satisfy CITES regulations.

Europe – The European Council has approved a regulation that introduces the first EU-level (European Union) certification framework for permanent carbon removals, carbon farming and carbon storage in products. This voluntary framework aims to foster high-quality carbon removal and soil emission reduction activities across the EU, supporting the goal of achieving climate neutrality by 2050.

The regulation includes several key activities such as permanent carbon removals, which capture and store atmospheric or biogenic carbon for centuries, such as bioenergy with carbon capture and storage and direct air capture with storage in addition to carbon storage in products. This refers to the capture and storage of carbon in long-lasting products, like wood-based construction materials for at least 35 years. Carbon farming is another key activity. It involves enhancing carbon sequestration and storage in forests and soils or reduces greenhouse gas emissions from soils, carried out over a minimum of five years. Examples include reforestation, restoring peatlands and improving fertilizer use.

For certification, all carbon removal activities must meet four main criteria: they must result in a quantified net carbon or soil emission reduction benefit; they must be additional, meaning they exceed statutory requirements and are financially viable with the incentive of certification; they must aim to ensure long-term carbon storage while minimizing the risk of carbon release; they should not cause significant harm to the environment and should offer co-benefits to other sustainability goals.

Third-party verification will be required to ensure the credibility of certified activities. Certification schemes will be implemented to allow operators to prove compliance with the regulation, supported by robust monitoring, verification and reporting rules.

The regulation also sets the stage for an EU-wide electronic registry, to be established within four years, ensuring transparency and full traceability of certified carbon removal and soil emission reduction activities.

This regulation is a significant step in integrating carbon removal efforts into EU climate policy, helping the EU meet its climate neutrality target while supporting the wood products sector’s role in long-term carbon storage. It will be published in the EU’s Official Journal and will enter into force 20 days after publication, becoming directly applicable in all EU member states.

Vietnam – Vietnam’s wood industry was set to achieve impressive export earnings of $16 billion in 2024, showcasing strong recovery and growth. With a year-to-date growth rate of nearly 21 percent, the sector earned $13.18 billion in the first 10 months of 2024. This surge reflects the industry’s resilience and ability to adapt to market fluctuations through technological advancements, sustainable practices and an expanding global footprint.

The United States remains Vietnam’s largest consumer of wood and wood products, accounting for over 50 percent of the market share. China and Japan follow as the next largest importers. Notably, exports to the U.S. and China grew by double digits compared to the same period last year, while exports to Japan saw a modest increase. Among Vietnam’s 15 major export markets, Spain recorded the highest growth, with a remarkable increase of over 63 percent. Key products driving this growth include wood chips (up nearly 38 percent) and wood products (up over 20 percent).

Vietnam’s wood industry is also focusing on sustainable forest management and circular production to meet international standards and reduce risks from regulatory scrutiny. The Ministry of Agriculture and Rural Development has implemented initiatives to certify timber from legal sources and promote sustainable forest management. Efforts include issuing codes for raw material forest-growing areas and supporting collaboration between forest producers and processors. These measures aim to ensure compliance with international regulations such as the EU’s Anti-Deforestation Regulation (EUDR).

As global demand for wood products continues to recover, Vietnam’s wood processing sector is poised to expand its international presence. Trade fairs, market promotions and investments in green technology and digital transformation are set to solidify Vietnam’s position as a leading player in the global wood industry. However, challenges remain, including potential United States anti-dumping investigations and the need for enhanced trade promotion strategies for domestic enterprises.

Europe – According to the most recent data available at press time, total EU27 imports of tropical wood and wood furniture of 358,100 tonnes in the third quarter of 2024 were down four percent compared to the previous quarter and 10 percent less than in the same quarter in 2023.

The latest figures mean that imports in the last four quarters, averaging around 350,000 tonnes, have been well below the long-term average of closer to 450,000 tonnes. In the first nine months of 2024, the EU27 imported 1,066,400 tonnes of tropical wood and wood furniture, 14 percent less than the same period in 2023. In quantity terms, EU imports of tropical wood and wood furniture products this year look set to be at the lowest annual level ever recorded since the EU was first formed (as the EEC) in 1957.

The trade figures look healthier when considered in value terms. EU27 import value of tropical wood and wood furniture in the third quarter this year was US$763 million, five percent less than the previous quarter and just 0.7 percent down on the same quarter last year.

In value terms, EU27 tropical wood product imports are at the same low, but broadly stable, level prevailing between 2013 and 2019. In the first nine months of 2024, the EU27 imported tropical wood and wood furniture with total value of US$2,284 million, nine percent less than the same period in 2023.

By Miller Wood Trade Publications

The premier online information source for the forest products industry since 1927.

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