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US Hardwood Exports: A Global Perspective Michael S Snow Executive Director AHEC. AHEC member companies supply the growing worldwide demand for U.S. hardwoods, exporting the full range of hardwood products including lumber, flooring, veneer, molding, and dimension materials.
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US Hardwood Exports:A GlobalPerspectiveMichael S SnowExecutive DirectorAHEC
AHEC member companies supply the growing worldwide demand for U.S. hardwoods, exporting the full range of hardwood products including lumber, flooring, veneer, molding, and dimension materials. AHEC Members include: 111 direct company members; 12 export association members; 8 associate members; 4 sponsor members; Represents 90% of the U.S. hardwood industry AHEC Membership
U.S. Hardwood Exports1986-2007 $ Million
World’s Leading Hardwood Lumber Exporters: 2007 Source: Global Trade Atlas
Growing Importance of US Hardwood Exports:Exports as a % of US Production Source: Hardwood Review,
Red Alder Exports $Millions FAS value)
Red Alder Exports: Major Markets 2005-2007(Millions of Dollars) Source: GTA
Value of Hardwood Lumber Exports to Japan1997-2007 ($ Thousand F.A.S. Value) Source: US Census Bureau
Value of Hardwood Lumber Exports to Korea1997-2007 ($ Thousands F.A.S. value) Source: US Census Bureau
China: Threat AND Opportunity (Photo by Dr. Dave Cohen, UBC) Center for International Trade in Forest Products
US Hardwood Lumber Exports to China ($ Millions FAS value)
Demand Drivers • Housing Privatization • Commercial Construction • Rising consumer wealth and sophistication; • Domestic and export oriented • manufacturing in furniture and interior fittings sectors; • Hospitality industry – 2008 Beijing Olympics/2010 Asian Games in Guangzhou
Chinese GDP Growth 1999-2007 Pillars of Growth: • High levels of investment spending • Trade and Opening to world economy.
Chinese Domestic Market • China Accounted for 20% of Global Economic Growth 2000-2005 • Automobile Market Exceeds Germany • Largest Mobile Phone Market in the World • Estimated 10% of Population with “Middle Class” Purchasing Power. Represents 130 million consumers and growing!
China Furniture Production & Exports Billion USD • China National Furniture Association
Greater China: Furniture Sector Chinese Furniture Export by Province 2006 (Million US$) Province Guangdong province accounts For over 50% of China furniture exports.
Greater China: Furniture Sector Export Markets for Chinese Furniture in 2004 .
Greater China: Furniture Sector Export Markets for Chinese Furniture 07 .
Greater China: Property Development • Approximately 700 million square meters of finished construction each year • Flooring demand to hit 2.5 billion square meters in 2008 • Door and window market to hit 500 million units in 2008 Source: ITTO,
厨房:美国红橡木橱柜 Kitchen: American Red Oak Cabinets
Hardwood Demand Driver III:Flooring and Secondary Manufactures
China Flooring Production: 2002-2006 • China is the largest wood flooring producer & consumer • Account for 50% world flooring production. million m2
US Hardwood Flooring Imports: Major Suppliers 2004-2006(Millions of Dollars) Source: GTA
2004-2006 China Door Production & Export United States is the largest export market for Chinese door, account for over 40% of the total export value. million USD
What’s Next? • Will China become a major player in the lumber/veneer export markets? • How much growth left in the furniture industry? • Can Chinese plantations make them more self-sufficient in wood fibre?
China’s rank in wood products global trade: • Production:Global Rank • Plywood #1 • MDF #1 • Blockboard #1 • Furniture #2 • Hardwood lumber #2 • Particleboard #3 • Softwood lumber #4 (higher than Sweden) • Finished Products Soaring • Imports #2 (after the USA) • Exports #1 Source: Wood Markets Inc
Chinese Wood Product Exports:(Millions of Dollars/ 8 month totals) Source: World Trade Atlas
China is a Low Cost Producer, But… Source: Wood Markets Inc
World’s Leading Hardwood Log Importers Source: Global Trade Atlas
US Hardwood Log Exports to China: 1997-2007(Thousands of Cubic Meters) Source: USDA-FAS
China: Hardwood LogImports 2007 % Market Share Source: World Trade Atlas:
China Domestic Timber Output Under NFCP Source: China Timber Import Export Co/IFSA Consulting
Per Capita Wood Consumption In cubic meters per capita Source: China Timber Import Export Co/Hardwoodmarkets.com 2005
Other Markets to Watch • Southeast Asia/Vietnam • Middle East • Latin America • India • **The EU**
S.E. Asia: Market Overview Million US$
VIETNAM U.S. Hardwood Log, Lumber & Veneer to VIETNAM Million US$
2 1 3 4 5 6 7 8 Establishment (company – enterprise) Picture of wood processing factories in VN Source: Ministry of Agriculture & Rural development
Hardwood Lumber Exports to Mexico Source: Global Trade Index
Mexico: Hardwood Import Market Share Source: Global Trade Index