Insights on Engineered Wood Market Trends

1. Secondary processed wood products markets, including engineered wood products UNECE TIMBER COMMITTEE Fifty-ninth session 2-5 October 2001

2. Secretariat introduction by Mr. Ed Pepke, Forest Products Marketing Specialist, UNECE & FAO Timber Section • European flooring market by Mr. Filip De Jaeger, Deputy Secretary General, CEI-Bois • Discussion UNECE TIMBER COMMITTEE Fifty-ninth session 2-5 October 2001

3. Highlights from Forest Products Annual Market Review, 2000-2001 • World trade of secondary processed wood products is expanding at a faster rate than trade in primary wood products. • United States, Germany, France, United Kingdom and Japan account for 60% of world imports of secondary processed wood products. • Changing import supply patterns to these markets differ by product and by country. UNECE TIMBER COMMITTEE Fifty-ninth session 2-5 October 2001

4. Highlights from Forest Products Annual Market Review, 2000-2001 • Imports of secondary processed wood products from tropical producers are replacing primary product imports from these producers. • Comparative advantage in the manufacture of secondary processed wood products is likely to shift increasingly to regions with low production costs. • The value of world trade in wooden furniture ($29 billion) exceeds that of sawnwood ($25 billion) and wood-based panels ($16 billion). UNECE TIMBER COMMITTEE Fifty-ninth session 2-5 October 2001

5. Highlights from Forest Products Annual Market Review, 2000-2001 • Engineered wood product markets are gaining market share in North America; for example, 33% of wood floor area is now built with wooden I-beams. • North American glulam production increased by 14% in 2000. • Laminated veneer lumber (LVL) production in North America declined by 6% in 2000. UNECE TIMBER COMMITTEE Fifty-ninth session 2-5 October 2001

6. EU imports of tropical primary and secondary • wood products from tropical producing • countries, 1995-1998 •   1995 1998 • Primary products 12,953 2,605 (Million $) • -12% • Secondary products 2 1,272 1,641 (Million $) • +29% • 1 Logs, sawnwood, plywood, veneers. • Wooden furniture and parts, builders’ woodwork, • other processed secondary wood products, cane and • bamboo furniture and parts. • Source: ITTO, 2000. UNECE TIMBER COMMITTEE Fifty-ninth session 2-5 October 2001

7. Four drivers of international trade in secondary processed wood products • Exporters of primary products are adding value to their basic products to improve profitability and to avoid the strong cyclical movements associated with commodity products. • Shifts in manufacturing location reflecting regional differences in cost competitiveness. UNECE TIMBER COMMITTEE Fifty-ninth session 2-5 October 2001

8. Four drivers of international trade in secondary processed wood products • Technology transfer facilitates regional shifts in production. • International agreements reducing tariffs and other trade barriers are creating new international trading opportunities. UNECE TIMBER COMMITTEE Fifty-ninth session 2-5 October 2001

9. Engineered Wood Products • Glulam • I-beams • Laminated Veneer Lumber (LVL) UNECE TIMBER COMMITTEE Fifty-ninth session 2-5 October 2001

10. Glulam (glued, laminated sawnwood beams) UNECE TIMBER COMMITTEE Fifty-ninth session 2-5 October 2001

11. Glulam (glued, laminated sawnwood beams) • World glulam production increased by 19% in 2000 to a record 3.1 million cubic metres. • Japanese imports of glulam increased 55% in 2000. • North American glulam production increased by 14% in 2000 because higher demand in N. America, Japan and Europe. UNECE TIMBER COMMITTEE Fifty-ninth session 2-5 October 2001

12. Glulam (continued) • Standard sizes growing in popularity in both residential and non-residential building construction. • APA-the Engineered Wood Association’s outlook for North American domestic market growth is 1% to 3% annually. UNECE TIMBER COMMITTEE Fifty-ninth session 2-5 October 2001

13. Glulam production by region and countries, 1995-2000 1000 m3 UNECE TIMBER COMMITTEE Fifty-ninth session 2-5 October 2001

14. Wooden I-beams UNECE TIMBER COMMITTEE Fifty-ninth session 2-5 October 2001

15. Wooden I-beams • 33% of the wood floor area in United States and Canadian homes is built with I-beams that have substituted for solid sawn joists or beams. • North American I-beam production declined 3% in 2000 • 1/3 of the decline can be attributed to fewer housing starts. 2/3 of the decline was due to a loss in market share to conventional sawnwood at lower prices in 2000 UNECE TIMBER COMMITTEE Fifty-ninth session 2-5 October 2001

16. Laminated veneer lumber (LVL) UNECE TIMBER COMMITTEE Fifty-ninth session 2-5 October 2001

17. Laminated veneer lumber (LVL) • LVL production in North America declined 6% in 2000 to 1.4 million cubic meters. • 2000 production drop due to the decline in I-beam production (60% of LVL is used for flanges of I-beams). • 3% to 4% annual growth forecast by APA. UNECE TIMBER COMMITTEE Fifty-ninth session 2-5 October 2001

18. Next presentation: Mr. Filip De Jaeger, CEI-Bois on European Flooring Market Then discussion on secondary processed wood products and engineered wood products. UNECE TIMBER COMMITTEE Fifty-ninth session 2-5 October 2001