outlook for european forest products markets in 2001-2002

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F A O Puumarkkinapäivä, Lahti, 2001 Outlook for European forest products markets in 2001-2002 by Ed Pepke Forest Products Marketing Specialist UNECE & FAO, Geneva

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Outlook for European forest products markets in 2001-2002. by Ed Pepke Forest Products Marketing Specialist UNECE & FAO, Geneva. Topics of presentation. Wood market situation in 2000 and 2001 Forecasts for 2002 Implications on utilization of roundwood UNECE Timber Committee recommendations - PowerPoint PPT Presentation

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Page 1: Outlook for European forest products markets in 2001-2002

FAO Puumarkkinapäivä, Lahti, 2001

Outlook for European forest products markets in 2001-2002

by Ed Pepke

Forest Products Marketing Specialist

UNECE & FAO, Geneva

Page 2: Outlook for European forest products markets in 2001-2002

FAO Puumarkkinapäivä, Lahti, 2001

Topics of presentation

• Wood market situation in 2000 and 2001

• Forecasts for 2002

• Implications on utilization of roundwood

• UNECE Timber Committee recommendations

• Concluding marketing principle

• Questions

Page 3: Outlook for European forest products markets in 2001-2002

FAO Puumarkkinapäivä, Lahti, 2001

Sources of information

• UNECE Timber Committee market statement from October 2001

• UNECE & FAO Timber Bulletin “Forest products annual market review, 2000-2001”

• UNECE & FAO TIMBER database

Page 4: Outlook for European forest products markets in 2001-2002

FAO Puumarkkinapäivä, Lahti, 2001

UNECE & FAO TIMBER database

• Annual forest products statistics from country correspondents, 1964-2000

• Timber Committee forecasts, 2001-2002

• Production, trade and consumption

• Available on Timber Committee website’s Market Information Service

Page 5: Outlook for European forest products markets in 2001-2002

FAO Puumarkkinapäivä, Lahti, 2001

Forest products market segments

• Timber Committee forecasts for:SawnwoodPanelsRoundwood

• Status of markets for:Further processed products For example, Engineered Wood Products

Page 6: Outlook for European forest products markets in 2001-2002

FAO Puumarkkinapäivä, Lahti, 2001

UN Economic Commission for Europe Region

• Europe (focus of this presentation, 41 countries!)

• North America

• Commonwealth of Independent States (CIS)

Page 7: Outlook for European forest products markets in 2001-2002

FAO Puumarkkinapäivä, Lahti, 2001

UNECE Timber Committee outlook

• Record levels in 2000

• Weakening markets in 2001

• Improvement forecast initially in 2002

• Uncertainty of 2002 forecasts following the 11 September attacks

Page 8: Outlook for European forest products markets in 2001-2002

FAO Puumarkkinapäivä, Lahti, 2001

Increasing globalization effects

• Some effects not specific to forest products sector

• Sector-specific:Multi-national buying chains, e.g., DIYGlobal product marketsExport-oriented plantations

Page 9: Outlook for European forest products markets in 2001-2002

FAO Puumarkkinapäivä, Lahti, 2001

Forest products markets outlook

• Sawnwood

• Panels

• Utilization of roundwood

• Value-added products

Page 10: Outlook for European forest products markets in 2001-2002

FAO Puumarkkinapäivä, Lahti, 2001

Sawnwood production & consumption – Europe

70,000.0075,000.0080,000.0085,000.0090,000.0095,000.00

100,000.00105,000.00110,000.00115,000.00

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Consumption Production

11000

m3

Page 11: Outlook for European forest products markets in 2001-2002

FAO Puumarkkinapäivä, Lahti, 2001

Sawnwood consumption – N. America

0

20,00040,000

60,00080,000

100,000

120,000140,000

160,000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Softwood Hardwood

1000

m3

Page 12: Outlook for European forest products markets in 2001-2002

FAO Puumarkkinapäivä, Lahti, 2001

Sawnwood production – CIS

05,000

10,00015,00020,00025,00030,00035,00040,00045,000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Production Consumption

1000

m3

Page 13: Outlook for European forest products markets in 2001-2002

FAO Puumarkkinapäivä, Lahti, 2001

Sawnwood exports – Europe

05,000

10,00015,00020,00025,00030,00035,00040,00045,000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Softwood Hardwood

1000

m3

Page 14: Outlook for European forest products markets in 2001-2002

FAO Puumarkkinapäivä, Lahti, 2001

Sawnwood exports – North America

0

10,000

20,000

30,000

40,000

50,000

60,000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Softwood Hardwood

1000

m3

Page 15: Outlook for European forest products markets in 2001-2002

FAO Puumarkkinapäivä, Lahti, 2001

Sawnwood exports – CIS

0

2,000

4,000

6,000

8,000

10,000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Softwood Hardwood

1000

m3

Page 16: Outlook for European forest products markets in 2001-2002

FAO Puumarkkinapäivä, Lahti, 2001

Sawnwood imports – Europe

0

10,000

20,000

30,000

40,000

50,000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Softwood Hardwood

1000

m3

Page 17: Outlook for European forest products markets in 2001-2002

FAO Puumarkkinapäivä, Lahti, 2001

Sawnwood trade – Europe

0

10,000

20,000

30,000

40,000

50,000

60,000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Exports Imports

1000

m3

Page 18: Outlook for European forest products markets in 2001-2002

FAO Puumarkkinapäivä, Lahti, 2001

Panels consumption – Europe

05,000

10,00015,00020,00025,00030,00035,00040,000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Particleboard (with OSB) Plywood Fibreboard

1000

m3

Page 19: Outlook for European forest products markets in 2001-2002

FAO Puumarkkinapäivä, Lahti, 2001

MDF and OSB capacity – Europe

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

1994 1995 1996 1997 1998 1999 2000 2001 2002

OSB MDF

1000

m3

Source: European Panel Federation, 2001

Page 20: Outlook for European forest products markets in 2001-2002

FAO Puumarkkinapäivä, Lahti, 2001

OSB Production

0

5

10

15

20

1996 1997 1998 1999 2000

North America Europe

Mill

ion

m3

Page 21: Outlook for European forest products markets in 2001-2002

FAO Puumarkkinapäivä, Lahti, 2001

Panel production – Europe

0

10,000

20,000

30,000

40,000

50,000

60,000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Plywood Particleboard MDF

1000

m3

Page 22: Outlook for European forest products markets in 2001-2002

FAO Puumarkkinapäivä, Lahti, 2001

Panel exports – Europe

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Particleboard MDF Plywood

1000

m3

Page 23: Outlook for European forest products markets in 2001-2002

FAO Puumarkkinapäivä, Lahti, 2001

Panel imports – Europe

0

2,000

4,000

6,000

8,000

10,000

12,000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Particleboard Plywood MDF

1000

m3

Page 24: Outlook for European forest products markets in 2001-2002

FAO Puumarkkinapäivä, Lahti, 2001

Panels consumption – N. America1984-2002

05,000

10,00015,00020,00025,00030,00035,000

Particleboard (with OSB) Plywood Fibreboard

1000

m3

Page 25: Outlook for European forest products markets in 2001-2002

FAO Puumarkkinapäivä, Lahti, 2001

Panels consumption – N. America1984-2002

05,000

10,00015,00020,00025,00030,00035,000

Particleboard Plywood Fibreboard OSB

1000

m3

Page 26: Outlook for European forest products markets in 2001-2002

FAO Puumarkkinapäivä, Lahti, 2001

Panels production – CIS

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2001 2002

Production Consumption

1000

m3

Page 27: Outlook for European forest products markets in 2001-2002

FAO Puumarkkinapäivä, Lahti, 2001

Utilization of roundwood – Europe

0

100,000

200,000

300,000

400,000

500,000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Wood pulp Sawnwood Panels

1000

m3 e

qu

ival

ent

Page 28: Outlook for European forest products markets in 2001-2002

FAO Puumarkkinapäivä, Lahti, 2001

Utilization of roundwood – N. America

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Wood pulp Sawnwood Panels

1000

m3 e

qu

ival

ent

Page 29: Outlook for European forest products markets in 2001-2002

FAO Puumarkkinapäivä, Lahti, 2001

Utilization of roundwood – CIS1988-2002

0

50,000

100,000

150,000

200,000

250,000

Wood pulp Sawnwood Panels

1000

m3 e

quiv

alen

t

Page 30: Outlook for European forest products markets in 2001-2002

FAO Puumarkkinapäivä, Lahti, 2001

Further-processed product markets

• Example: engineered wood products

• Other examples: furniture, builders joinery and millwork

• Production and trade increasing rapidly

Page 31: Outlook for European forest products markets in 2001-2002

FAO Puumarkkinapäivä, Lahti, 2001

Engineered Wood Products

• World glulam production +19% in 2000

• Wooden I-beams now 33% of North American floor area

• LVL (Laminated Veneer Lumber) production –6% in 2000 in North America, but +4% growth forecast

Page 32: Outlook for European forest products markets in 2001-2002

FAO Puumarkkinapäivä, Lahti, 2001

Rapid growth in further processed products

Added value for:DiversificationProfitabilityAvoiding commodities cyclical movements

• Shift to low-cost production countries

• Reduction in international trade barriers

Page 33: Outlook for European forest products markets in 2001-2002

FAO Puumarkkinapäivä, Lahti, 2001

UNECE Timber Committee statement

• Expand existing markets

• Develop new products to meet evolving needs

• Develop new markets for wood products

• Increase the wood culture in the UNECE region

• Coordinate international promotion of environmental advantages of wood

Page 34: Outlook for European forest products markets in 2001-2002

FAO Puumarkkinapäivä, Lahti, 2001

Conclusion:

Remember the key marketing principal

1. Know your market.

Page 35: Outlook for European forest products markets in 2001-2002

FAO Puumarkkinapäivä, Lahti, 2001

Know your market.

Where is my market ?

Hei, up here,tollo poro !

Page 36: Outlook for European forest products markets in 2001-2002

FAO Puumarkkinapäivä, Lahti, 2001

Questions?