WORLD MARKETS
EU, North American wood demand rising: UN
Consumption of forest products across Europe and North America is on the rise again after a two-year slump, reports the United Nations noting that overall demand was up by 5.6 % last year, a clear indication that the industry may be on a path to recovery
T
rends in the first half of this year lend support to a continued, albeit modest, rise in consumption, according to the
Forest Products Annual Market Review 2010- 2011 prepared by the UN Economic Commission for Europe (UNECE) and the UN Food and Agriculture Organization (FAO). There were small differences in consumption
growth in the UNECE region, which includes North America. Consumption rose by 4.1% in North America and by 6.6% in Europe. In the Commonwealth of Independent States (CIS) growth in consumption was up 6.3%. Production also rose in tandem with
increasing consumption, with industrial roundwood (the raw material for processing and manufacture) climbing to 950 million m3
,
8% higher than in 2009, but still 15% below the 2006 peak production year. As the main driver for forest products
markets, especially for sawn softwood (lumber) and wood-based panels, housing construction is a key indicator of likely demand and production.
After the decline in new construction
registered since the 2006 peak, data for last year indicated a small recovery in both Europe and North America. It is uncertain if this trend will continue, though data for the first half of this year show a steady rise in house construction. In the United States, data released on July 19
by the US Census Bureau show that building permits in June were at a seasonally adjusted annual rate of 624,000 or 2.5% above the revised May rate of 609,000, and 6.7% above the June 2010 estimate of 585,000. In sharp contrast to the previous two years, all wood product sectors in the UNECE region have witnessed a recovery in demand, including
sawnwood (up by 8.3%), wood-based panels (4.8%), and paper and paperboard (4.2%). The paper and paperboard sector showed
good recovery last year in almost all categories in all the three sub-regions of UNECE, according to the report. After several years of decline, production of newsprint increased by 10% in Europe last year, compared with 2009. Even in the US, where the decline in newsprint has been steepest, with consumption in 2010 only one-third of what it was in 2005, consumption has flattened out. The forest sector, which already makes a significant contribution to the green economy, needs to redouble efforts to market itself more effectively to ensure that wood shakes off its old-fashioned image and be seen as a modern material that combines beauty and durability and has one of the lowest carbon footprints of any major raw material, the report said.
International Forest Industries | AUGUST/SEPTEMBER 2011 11
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