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FRENCH TIMBER 2022 ACTION PLAN
After a difficult year in 2021, French Timber has managed to keep most of its operation running and trade shows are almost back on track for 2022. Strong demand and a desire for face-to- face meetings have contributed to making attendance at latest events highly successful. Since last December, we’ve attended trade shows in Egypt, Dubai, Spain, France and South Africa. Given the significance of the Chinese market, we’ve run an office in Shanghai for the last 10 years. The market situation there is improving day by day, although this year, as last, only our local Shanghai staff will be attending events.
Our focus for 2022 will be put on different markets, including
Sweden, Vietnam, Indonesia and Japan now they are open once more for business. Companies are already registering to attend events in these countries in order to capitalise when product availability increases once more. Our mission is to support the French industry by directing members to opportunities across a range of markets and keeping them abreast of developments globally to inform their business strategy. The goal is to help them diversify their customer base and avoid over-dependence on any country in particular. ■
and transport and we can foresee static or declining production levels through 2022 and continued higher prices.
The only good news is that raw material trade with China is down in 2022, better enabling European producers to secure their supplies.
The situation for oak logs, however, remains catastrophic because there is no other equivalent source of supply for China. In the first five months of 2022, exports of French oak logs to China have increased a further 30%. In April, France was China’s leading supplier, with 53% market share. Consequently competition is fierce between French mills to secure sufficient logs. Prices continue to rise and lumber availability is restricted.
The situation in Ukraine and the EU embargo on Russian imports has also led to more buyers turning to the rest of Europe to try to secure more volume.
SOFTWOOD MARKET Exceptionally strong demand in western European markets for softwood has produced a price surge. French sawmills were principally focused on meeting domestic
needs, but export levels have been catching up with sales in France, driven particularly by demand in Belgium, the Netherlands, Spain and Germany. Douglas fir has been especially sought after. Exports to the UK are also up by 60% to reach a record high. The main softwood market driver in 2022 was demand from the packaging industry, which has seen its supply lines significantly disrupted by the war in Ukraine and the subsequent bar on imports from Belarus and Russia. That need to replace those raw material sources sent lumber and pallets prices skyrocketing.
The situation is easing right now, but the impact of the war is set to increase again once outstanding contracts with Russia and Belarus, placed prior to the conflict, are concluded in July.
French building activity remains high for the moment and the continued backlog of orders post-pandemic should keep the market active through 2022, even if distributors consider reducing their inventories. France’s export of softwood lumber should also reduce this year to reach a more normal volume of 850,000m3 in 2021.
OAK MARKET The hardwood market has also been deeply impacted by the Russian invasion of Ukraine, as it was a major source of oak lamellas for the parquet industry. Buyers scrambled to secure more product from western producers, but availability was already very limited.
FRENCH OAK EXPORTS
Exports to the UK increased 50% to reach a record high of 65,000m3
. It remains
France’s main oak export market, followed by China, but taking a wider range of products including lumber, oak for decorative applications, sleepers and construction. Overall, oak exports are back on track after a steep decline in 2019 and 2020 and as French production is not increasing, the percentage of lumber output going abroad has increased substantially.
, compared to 910,000m3
This increase was possible due to inventory at sawmills, however, these are now diminished. Most oak mills are refusing to take on new customers as a result and are even having to allocate production to existing, long-term customers. In 2022, we expect a decrease in oak lumber exports due to low log availability. ■
1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 -
2016 Total 2017 Espagne
2018 2019 2020 2021 Belgique
Pays Bas
250,000 200,000 150,000 100,000 50,000
- 2016 Total 2017 United Kingdom
2018 2019 2020 2021 Belgium
Germany
Above left: French softwood exports, with sales to Spain, Belgium, and the Netherlands highlighted Above right: French oak exports
www.ttjonline.com | July/August 2022 | TTJ
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