Slow French market and new tariffs hit African plywood
Trends in EU imports of hardwood plywood from African countries varied widely in 2014. Imports from Gabon, by far the largest African supply country, declined 3% to 40,000 cu.m. A significant proportion of this product is FSC certified derived from large European-owned operations in Gabon. Demand was impeded by slow recovery in France, traditionally the main European market for okoume plywood. EU imports in 2014 were also disrupted by occasional strikes by customs officials at Libreville port in Gabon.
Like Malaysia, Gabon’s GSP status changed from 1 January 2014 leading to imposition of a 7% tariff on EU imports of hardwood plywood from Gabon.
However, under pressure from EU-based plywood manufacturers, Gabon’s exports of hardwood veneers to the EU were exempt from the increase in duty. The overall effect of the new tariff regime is to favour EU-based over Gabon-based manufacturers.
EU imports of hardwood plywood from Morocco declined sharply in 2014, continuing the downward trend of the previous year.
Log export restrictions by Gabon and other countries in the Congo region have meant that Moroccan manufacturers now have limited access to logs. EU imports of plywood from Cameroon have climbed in the last two years, but were still limited at only 7000 cu.m in 2014. EU imports from Ivory Coast and Ghana were negligible in 2014.
The majority of all African hardwood plywood imported into the EU is now destined for just two countries– Italy and the Netherlands – with smaller volumes destined for France, Belgium and Greece. European consumption of okoume plywood has been in long term decline, particularly in France, formerly the leading market. Imports into France were down 40% in 2014 at only 6000 cu.m.
However imports into Italy were relatively stable, while there were small gains in imports by the Netherlands, Belgium and Greece.
Both EU manufacturers and importers reported slightly better demand for okoume plywood in 2014 than in the previous year. This was driven by slow improvements in the construction sector in the Netherlands and Belgium and by rising boat-building activity in Italy. Sales of okoume plywood – generally sold in euros unlike Asian plywood sold in US$ – also benefitted from the weak euro exchange rate during 2014.
Another advantage is relatively short delivery time. Lead times for standard dimensions may be under 2 weeks. A growing share of supply and demand for okoume plywood in the EU market is FSC certified.
With extremely tight margins in the industry, okoume plywood manufacturers were trying to push through price increases in 2014, but struggled in the face of weak European consumption and intense competition from alternative products.
However, in early 2015 the market situation has been sufficiently favourable to allow manufacturers and distributors to push through limited price increases, particularly for FSC certified products.
Source: IHB
Khephren FANGA