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This publication provides an analysis of the global supply and demand for wood products, including production, consumption, trade, and factors affecting models and markets. It also includes specific regional and sectoral analysis.
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Global Outlook: Supply & Demand for Wood Products Ed Pepke, Ph.D. Forest Products Marketing Specialist Food and Agricultural Organization UN Economic Commission for Europe Geneva, Switzerland
Outline • Forest products markets • Production, consumption & trade • Global • Regional • Sectoral • Forest resources • Growing the market
Sources • UNECE/FAO TIMBER database on forest products statistics • UNECE/FAO Temperate & Boreal Forest Resources Assessment • FAO Global Forest Products Outlook Study • FAO Global Forest Resources Assessment • FAOSTAT Forestry Database website • UNECE/FAO Timber Bulletin “Forest products annual market analysis, 2002-2005 • UNECE Timber Committee market forecasts
World production of roundwood,1961-2003 Source: FAOSTAT
Regional production of industrial roundwood, 1961-2010 Source: FAOSTAT and FAO Global Forest Products Outlook Study
Regional trade, all primary forest products, 2002 Source: FAOSTAT
N. American softwood lumber market, 1995-2004 Source:UNECE Timber Committee forecasts, 10.2003
N. American softwood lumber trade, 1995-2004 Source:UNECE Timber Committee forecasts, 10.2003
N. American hardwood lumber market, 1995-2004 Source:UNECE Timber Committee forecasts, 10.2003
N. American hardwood lumber trade, 1995-2004 Source:UNECE Timber Committee forecasts, 10.2003
American lumber consumption & production, 1980-2010 Source: FAO Global Forest Products Outlook Study
American lumber trade, 1980-2010 Source: FAO Global Forest Products Outlook Study
Factors affecting models and markets • Gross domestic product (GDP) • Population • Costs and prices (labor, raw material, etc.) • Technological change • Government policies • Socio-economic trends Global Forest Products Consumption, Production, Trade and Prices: Global Forest Products Model Projections to 2010 By Zhu, S; Tomberlin, D; Buongiorno, J. Published by FAO, 1998
European softwood lumber market, 1995-2004 Source:UNECE Timber Committee forecasts, 10.2003
European softwood lumber trade, 1995-2004 Source:UNECE Timber Committee forecasts, 10.2003
European hardwood lumber market, 1995-2004 Source:UNECE Timber Committee forecasts, 10.2004
European hardwood lumber trade, 1995-2004 Source:UNECE Timber Committee forecasts, 10.2004
Europe lumber consumption & production outlook, 1980-2010 Source: FAO Global Forest Products Outlook Study
Europe lumber trade outlook, 1980-2010 Source: FAO Global Forest Products Outlook Study
Russian softwood lumber market, 1992-2004 Source:UNECE Timber Committee forecasts, 10.2003
Asia lumber production & consumption outlook, 1980-2010 Source: FAO Global Forest Products Outlook Study
Asia lumber trade outlook,1980-2010 Source: FAO Global Forest Products Outlook Study
Japanese and Korean tariffs • In context of WTO trade negotiations, will not support elimination of wood tariffs • Forest product tariffs protect the domestic industry interest • Tariffs protect the environment, preserve limited natural forest resources and maintain minimum harvest levels for forest management • Forestry Agencies of both governments will continue this bilateral forum to protect common trade interests in the forest products sector. Source:Global Agriculture Information Network, January 2004.
North America structural production, 1995-2004 Source:UNECE Timber Committee forecasts, 10.2003
European OSB market, 1995-2004 Source:UNECE Timber Committee forecasts, 10.2004
America panel consumption & production outlook, 1980-2010 Source: FAO Global Forest Products Outlook Study
America panel trade outlook,1980-2010 Source: FAO Global Forest Products Outlook Study
Europe panel consumption & production outlook, 1980-2010 Source: FAO Global Forest Products Outlook Study
Europe panel trade outlook,1980-2010 Source: FAO Global Forest Products Outlook Study
Asia panel consumption & production outlook, 1980-2010 Source: FAO Global Forest Products Outlook Study
Asia panel trade outlook, 1980-2010 Source: FAO Global Forest Products Outlook Study
China’s expanding trade • Total export value 2003: $390 billion, +36% • Total import value 2003: 371 billion, +39% • Trade surplus: $20 billion • China & Japan 2003 trade: $120 billion, +31% • China & US 2003 trade: $114 billion, +29% • China & Europe 2003 trade: $112 billion, +43% • “Sudden growth” of primary product imports: timber, steel, oil, soybeans Source: “China Forest Products Market Information”, December 2003
Sino-US furniture trade: US side • Chinese share of US market increasing rapidly • Chinese furniture exports to US • 2000: $1.7 billion • 2002: $2.9 billion • Anti-dumping investigation requested by 28 American furniture manufacturers in November 2003 • US furniture industry earnings down 70% • US furniture workforce down 34,000 Source: “China Forest Products Market Information”, December 2003
Sino-US furniture trade: Chinese side • 60% of China’s furniture exports are “American” furniture • Produced by US-owned companies • US wood • US technology and styles • Advantage for US manufacturers is low manufacturing costs • Labor • Energy • Taxes Source: “China Forest Products Market Information”, December 2003
China’s booming timber imports • Housing construction • Only minority wood-based • Green and healthy communities • Affordable • Renovation market for houses and municipal • Infrastructure development • Interior woodwork and furnishings • Olympic-related construction (2008 Beijing) Source: “China Forest Products Market Information”, December 2003
N. America paper & paperboard consumption & production outlook, 1980-2010 Source: FAO Global Forest Products Outlook Study
N. America paper & paperboard trade outlook, 1980-2010 Source: FAO Global Forest Products Outlook Study
European paper & paperboard consumption & production outlook, 1980-2010 Source: FAO Global Forest Products Outlook Study
Europe paper & paperboard trade outlook, 1980-2010 Source: FAO Global Forest Products Outlook Study
Asia paper & paperboard consumption & production outlook, 1980-2010 Source: FAO Global Forest Products Outlook Study
Asia paper & paperboard trade outlook, 1980-2010 Source: FAO Global Forest Products Outlook Study
Summary: Key market issues (1 of 2) • Illegal logging and trade of illegally-sourced wood • Certification of sustainable forest management, markets for certified forest products • Policies for sound use of wood, wood promo • Industrial development policies and structural oversupply Source: Forest Products Annual Market Analysis, 2002-2004
Summary: Key market issues (2 of 2) • Climate change policy • Wood energy promotion policies • Trade policy, tariff and non-tariff barriers Source: Forest Products Annual Market Analysis, 2002-2004