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Report
from
North America
Hardwood plywood imports from China, Indonesia up
US imports of hardwood plywood grew by 14% to
290,946 m³ in August. Higher shipments from China and
Indonesia accounted for much of the growth. Year-to-date
imports were 11% higher than in August 2012.
Imports from China were 129,793 m³ in August, up 9%
from July. Imports from Indonesia recovered after
dropping steeply in July. August shipments were 77,255
m3, and year-to-date imports were 125% higher than at the
same time last year.
Ecuador‟s shipments fell from last month to 22,676 m3,
but on a year-to-date basis US imports from Ecuador were
more than four times higher than in August 2012.
More hardwood moulding from Brazil
Hardwood moulding imports fell to $16.6 million in
August, after they surpassed $18 million in July. Despite
the decline in total imports, Brazilian manufacturers
increased shipments to $4.6 million, up 3% from the
previous month.
All other major suppliers shipped less than in July.
Imports from China fell by 23% to $4.6 million in August.
Malaysian shipments declined by 10% to $1.2 million.
Indonesia remains largest hardwood flooring supplier
despite drop in August shipments
Imports of assembled flooring panels remained almost
unchanged from the previous month at $14.9 million, but
hardwood flooring imports grew by 14% to $3.1 million.
Hardwood flooring imports from Indonesia fell to
$861,000, down 34% from July. Malaysia shipped
$919,000, up 133% from the previous month. On a yearto-
date basis Indonesia remains the largest hardwood
flooring supplier, followed by Malaysia and China.
Wooden furniture imports from Mexico and Indonesia
up
US imports of wooden furniture remained around the $1.2
billion mark in August. Year-to-date imports were 5%
higher than in August 2012. Imports from China and
Vietnam declined in August, while imports from Mexico
and Indonesia were up.
China‟s furniture shipments to the US were $585.8 million
in August, down 7% from July. China‟s market share in
total US furniture imports in 2013 remained unchanged
from the previous year at 49%.
Imports from Mexico‟s were worth $49.7 million (+11%).
Imports from Indonesia grew to $51.6 million (+3%) and
Malaysian shipments were worth $47.9 million (+1%).
Furniture, wood products manufacturing expanding
Economic activity in the manufacturing sector expanded in
September for the fourth consecutive month, according to
the Institute of Supply Management. Furniture
manufacturing increased, while the wood products sector
reported no change from August.
Raw material prices increased, and wood product
companies reported the highest increase in purchasing
prices of all manufacturing sectors.
The overall economy also expanded in September. Based
on the Institute‟s survey data and past experience, GDP
growth is estimated at 3.3% on an annualized basis.
Consumer confidence down
Consumer confidence in the US economy fell in
September, according to the Thomson Reuters/University
of Michigan consumer sentiment index. Consumers are
worried about the government‟s economic policies and
they expect interest rates to rise in 2014.
The consumer survey was carried out before the partial US
government shutdown, and according to other surveys, the
government shutdown led to a steep decline in consumer
confidence in early October.
Builder confidence in the market for newly built singlefamily
homes remained essentially unchanged in
September, according to the Home Builders/Wells Fargo
Housing Market Index.
Factors that deter potential home buyers are rising
mortgage rates and difficulties to obtain credit. Rising
labour costs contribute to higher costs of construction.
Slow recovery in housing market continues
US housing starts increased slightly in August.
Construction started on 891,000 homes at a seasonally
adjusted annual rate, 0.9% above the revised July estimate
of 883,000. Housing starts are 19% higher than at the
same time last year.
In August, Single-family starts, which account for a larger
share of wood demand than multi-family housing,
increased by 7% to 628,000.
The number of building permits issued declined by 4% to
918,000 in August at a seasonally adjusted annual rate.
The number of permits issued is usually an indicator of
future building activity.
Sales of existing homes increased strongly in July. Sales
rose by 6.5% in July at a seasonally adjusted annual rate,
according to the National Association of Realtors. The
median home price is only 7.3% below its record high in
July 2006, before the financial crisis.
Canadian housing market stable
Canada‟s housing starts declined by 6.4% in August from
the previous month (seasonally adjusted annual rate).
Much of the decline was in multi-family starts in urban
areas.
Demand for existing homes remains strong. Sales of
existing homes grew for the sixth consecutive month in
August. Homes prices increased from the previous month
and compared to August last year.
Growth in non-residential construction projected
Commercial/industrial building construction was the
strongest non-residential sector in August. Construction of
hotels has also grown, but other non-residential building
types have declined, including manufacturing, offices and
education.
Non-residential construction will increase in the last
quarter of 2013 and continue to grow in 2014, according to
surveys by the American Institute of Architects. The
institute projects an overall increase of 2.3% for 2013 and
7.6% for 2014.
No duties on plywood from China
The US International Trade Commission ruled in early
November that there is not enough evidence for injury to
the US wood industry by imported Chinese plywood. The
unanimous ruling overturns the Commission‟s preliminary
determination of injury in 2012. The final countervailing
and antidumping duties that were announced in September
will not be imposed.
The Commission acknowledged that Chinese plywood
was subsidised and sold at less than fair market value. But
this has not harmed the US industry enough to impose
antidumping or other additional duties.
A public report of the investigation will be available after
December 16. The report ¡°Hardwood Plywood from
China¡± can be requested by email from the International
Trade Commission (pubrequest@usitc.gov).
Union calls for stronger enforcement of laws against
illegal logging
The United Steelworkers union supports measures to stop
illegal logging abroad to protect jobs in the US wood
processing industry. The union is the largest in North
America, representing workers in the pulp, paper and
forestry industries, mining, metals and several other
sectors.
The union has called for stronger enforcement of trade and
environmental laws, such as the Lacey Act, in response to
a report on illegal logging published by the Environmental
Investigation Agency. The report describes the illegal
logging and trade from Russia to China and after
processing and manufacturing, to the US market. For
example, illegally logged Russian hardwood is processed
into flooring in China and then exported to the US.
The Environmental Investigation Agency report is
available here: http://eia-global.org/campaigns/forestscampaign/
liquidating-the-forests
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