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Report from
Europe
Anti-dumping investigation drove rise in European
plywood imports
Total EU+UK imports of plywood from outside the region
in the first five months of 2025 were 1.83 million cu.m, up
15% compared to the same period in 2025. Import value
increased by 14% to US$829 mil. in the first five months
year-on-year. While the rebound is significant, import
quantity in the 12 months to May 2025, at around 4
million cu.m, is still some way below the annual average
import of 4.25 million cu.m in the years immediately
before the covid pandemic (Chart 1a).
European plywood imports in the first five months of this
year were likely boosted by on-going anti-dumping
investigations in the EU which may have encouraged
stock piling of the affected products in advance of
anticipated levy increases.
These include Chinese hardwood plywood for which the
EU introduced provisional duties of up to 62.4% from 11
June and Brazilian softwood plywood for which EU anti-
dumping investigations are still on-going.
In terms of share of total plywood imports in the EU+UK
region, Brazilian softwood plywood has experienced the
biggest gain this year, accounting for 37% of imports in
the first five months compared to 33% in the same period
last year. The share of Chinese temperate hardwood
plywood in total plywood imports fell from 36% in the
first five months of 2024 to 31% in the same period this
year.
Nevertheless, Chinese hardwood plywood still retained a
large part of the gains in the European market made
following the imposition of EU and UK sanctions on
Russian plywood in 2022 (Chart 1b).
EU Commission determines dumping by Chinese
hardwood plywood manufacturers
EU domestic plywood manufacturers called for an anti-
dumping investigation of Chinese hardwood plywood
imports. The complaint against China was made last year
on behalf of the EU hardwood plywood manufacturing
sector by the Greenwood Consortium,which, according to
evidence collected by the Commission, was supported by
producers accounting for more than 25% of hardwood
plywood production in the EU.
Details of the EU Commission’s investigation which led to
the subsequent imposition of the preliminary duties on
hardwood plywood from China from 11 June this year are
contained in Implementing Regulation (EU) 2025/1139 of
6 June 2025.
The EU Commission investigation concluded that EU
production of hardwood plywood fell 11% from 1,872,902
cu.m in 2021 to 1,664,963 cu.m during the period 1 July
2023 to 30 June 2024. It determined that the “Union
industry was unable to benefit from the exclusion of
Russian and Belarusian hardwood plywood on the Union
market. To the contrary, it was forced to reduce its
production starting in the year 2022 because of the
increase of Chinese imports (+32% in 2022, +10% in 2023
and + 16% in the investigation period) sold at dumped
prices.”
The EU Commission investigation further concludes that
“[T]he development of [EU hardwood plywood]
production capacity, which increased by 2% during the
period considered following investments made by the
Union industry, bears witness to the efforts of the Union
industry to replace the Russian and Belarusian hardwood
plywood excluded by the sanctions from the Union
market.
Capacity utilisation at 75% was already low in 2021 when
COVID negatively affected demand. In 2022, the Union
industry managed to maintain this level, only to see it fall
by 10% in 2023 and 13% in the IP, when compared to the
2021 level”.
The EU Commission goes on to state that “Sales quantity
on the EU market by the Union industry followed a
downward trend between 2021 and 2023 before slightly
picking up in the investigation period. Throughout the
period considered, the total Union industry’s sales quantity
decreased significantly by 12%”.
The EU Commission’s report of the investigation refers to
numerous submissions by Chinese plywood industry and
EU plywood importing representatives, the latter led by
the Plywood Trade Interest Alliance (PTIA), arguing
against the call for antidumping duties. These focused on
the specific characteristics of Chinese hardwood plywood
sold in the EU which they implied satisfies a different
market segments from EU production.
The various arguments against duties were rejected by the
EU Commission mainly on grounds that both the Chinese
and EU plywood industries “can and do produce the full
range of hardwood plywood products present in the Union
market” and that the “purported differences between
Chinese and Union industry hardwood plywood are in
quality only; their basic physical, technical and chemical
characteristics remain the same”.
See: https://eur-lex.europa.eu/eli/reg_impl/2025/1139/oj/eng
Declining availability of supply and consumption of
plywood
The combined effects of EU and UK sanctions on Russian
plywood and EU anti-dumping duties on Chinese
hardwood plywood and potentially also Brazilian
softwood plywood, will impact plywood availability in the
EU market. This comes at a time when the level of
plywood consumption in Europe is facing significant
headwinds.
Construction industry buyers reported another decline in
construction activity in the Eurozone, with the pace
accelerating in July. The latest HCOB Eurozone
Construction Purchasing Managers’ Index (PMI) showed
the steepest decline in new orders since February.
The seasonally adjusted Total Activity Index dropped to
44.7, from 45.2 in June, marking the 39th consecutive
month below the 50.0 threshold separating growth from
contraction.
Housing remained the worst-performing segment,
although its rate of decline eased slightly, while civil
engineering and commercial work also contracted.
France recorded the sharpest fall in output among the
bloc’s three largest economies. By contrast, German
construction companies reported a rate of decline that,
while still sharp, was the weakest for two and a half years
and suggested signs of a recovery.
Italy posted its first decline in five months as weak
demand led to the fastest reduction in purchasing activity
since December 2024. Sentiment remained negative, with
only Italian firms forecasting growth. “The outlook for
European construction companies remains weak,” said
HCOB economist Norman Liebke.
Construction industry buyers in the UK recorded the
steepest fall in activity in more than five years in July,
with the latest S&P Global UK Construction Purchasing
Managers’ Index (PMI) showing sharp declines across all
main sectors.
The headline PMI dropped to 44.3, from 48.8 in June,
signaling a marked downturn driven by a fresh contraction
in residential building and a steep fall in civil engineering
activity. Commercial construction also fell, albeit at a
softer rate. New orders declined for a seventh consecutive
month, with firms citing fewer tender opportunities, site
delays and weaker customer confidence.
One of the few bright spots for the European plywood
trade is that freight rates are currently quite low and there
are indications that the recent volatility in the shipping
sector may be easing. According to the Drewry's World
Container Index, at this time last year rates on the
Shanghai to Rotterdam route for a 40-ft container stood at
over $8250 but these had fallen to US$4774 by the end of
last year and hit a new low of just above US$2000 in early
May this year.
Drewry expects spot rates to remain less volatile in
coming weeks. Drewry’s Container Forecaster expects the
supply-demand balance to weaken again in the second half
of this year, which will cause spot rates to contract.
However the volatility and timing of rate changes will
depend to some extent on future US tariffs and on capacity
changes related to the introduction of US penalties on
Chinese ships, which are uncertain.
See: https://www.drewry.co.uk/supply-chain-advisors/supply-
chain-expertise/world-container-index-assessed-by-drewry
Malaysia and Vie Nam increase share of European
hardwood plywood market
Imports of plywood faced with tropical hardwood into the
EU+UK region were 191,400 cu.m in the first five months
of 2025, 6% more than the same period in 2024. In value,
imports increased 5% to US$121m in 2024.
This year EU+UK imports of tropical hardwood plywood
direct from tropical countries are performing much better
than imports of tropical hardwood plywood from China
(Chart 2).
EU+UK imports of tropical hardwood faced plywood from
China, mainly destined for the UK, were 25,300 cu.m in
the first five months of this year, 37% less than the same
period last year. However, EU+UK plywood imports
direct from tropical countries in the first five months of
2025 were 157,300 cu.m, 22% more than the same period
last year.
There were particularly large year-on-year increases in
imports from Malaysia, up 49% to 36,300 cu.m, and Viet
Nam which rose 120% to 19,500 cu.m. Imports of
hardwood plywood also increased 14% year-on-year from
Brazil, to 9,300 cu.m, while eucalyptus plywood imports
from Paraguay increased 105% to 8,500 cu.m.
In contrast, imports from Indonesia were down 3% year-
on-year to 48,700 cu.m in the first five months of 2025,
while imports from Gabon were down 11% to 24,300
cu.m, and imports of okoume plywood from Morocco
were down 15% to 7,500 cu.m.
The share of imports of hardwood plywood direct from
tropical countries in total EU+UK imports of plywood in
the first five months of this year was 8.6%, up slightly
from 8.1% in the same period last year. A bigger rise was
not recorded only because of the surge in Brazilian
softwood plywood imports in the early months of this
year.
The opportunity for tropical counties to increase their
share of the European market in the future seems clear
given the sanctions on Russian product and anti-dumping
measures already targeting Chinese product and threatened
for Brazilian softwood plywood.
European imports of temperate hardwood plywood
declined
The quantity of EU+UK imports of temperate hardwood
plywood decreased 3% year-on-year to 724,600 cu.m in
the first five months of 2025. Import value fell 2% to
US$375. A big part of the decline was due to a 64% fall in
imports from Kazakhstan, a result of EU taking steps to
prevent circumvention of the sanctions on Russian
plywood by supplying through the country.
There were also large percentage falls in EU+UK imports
during the first five months of this year from Uruguay (-
24% to 8,700 cu.m), and Norway (-48% to 5,100 cu.m).
Imports of temperate hardwood plywood from China were
559,500 cu.m in the first five months of this year, 1% less
than the same period in 2024. These losses were partly
offset by rising year-on-year imports from Ukraine (+3%
to 93,600 cu.m), Turkey (+24% to 14,300 cu.m), and
Georgia (+16% to 12,900 cu.m) (Chart 3).
Rising pace of European softwood plywood imports
The EU+UK region imported 912,000 cu.m of softwood
plywood in the first five months of 2025, 38% more than
the same period in 2024. Imports were up 30% year-on-
year from Brazil at 681,900 cu.m, while imports from
China increased 241% to 112,800 cu.m.
Imports also increased 20% to 76,100 m3 from Chile and
47% to 11,300 cu.m from South Africa. Imports from
elsewhere were negligible.
The duty-free quota for coniferous plywood imports, set at
201,000 cu.m for the UK and 448,500 cu.m for the EU,
was used up very rapidly this year (Chart 4).
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