UN-ECE 2000 - 1

UN/ECE Timber Committee

Rome, Oct. 2000

Secondary Processed Wood Products Markets

in ECE countries

P-M. DESCLOSForest Products Consultants

UN-ECE 2000 - 2

Highlights

Trade of secondary processed wood products (SPWPs) is smaller but growing faster than that of primary products in both temperate and tropical species.

The United States and the EU are the world’s major producers, importers and exporters of SPWPs.

Furniture is the most traded SPWP in the ECE region and overall the region is a net importer.

Volumes of SPWPs traded are difficult to assess from trade and production statistics.

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UN-ECE 2000 - 3

IntroductionThe volumes traded of secondary processed wood products (SPWPs) are still small

compared to primary-processed wood products, but they are growing faster than that of primary products in both temperate and tropical species.

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020406080

100120140160180

1991 1992 1993 1994 1995 1996 1997 1998Primary w ood products SPWP, including furniture

Million $ World trade of SPWPs versus primary product

Sources: FAO, 2000; and Comtrade, 2000

UN-ECE 2000 - 4

IntroductionThis trend is not specific to ECE member countries. ITTO trade analysis report similar and

even more accentuated evolution.

ITTO Consumer Imports of Primary and Secondary Tropical Timber Products

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0

5

10

15

91 92 93 94 95 96 97 98Secondary Primary

Sour ce : IT T O, 1 999 Annual r eview

billion $

UN-ECE 2000 - 5

DriversThis evolution is driven by several factors:

the development of consumption in various economic areas of the globe;

a revision of the structure of manufacturing industries, focusing on core-competence, opting for less vertical integration and consequently more out-sourcing ;

the differential of manpower costs between developing and developed nations;

the governmental incentives of many developing countries aiming at adding value locally and the resultant investments;

improved and competitive delivery logistics.

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UN-ECE 2000 - 6

Tracking Secondary Processed Wood

Products Tracking SPWPs is not always an easy thing.

The identification and definition of SPWPs at any intermediate steps of a given manufacturing process, as semi-finished components or as finished parts, are at some stages uncertain.

It is also worth noting that finished, and even semi-finished products, are rarely made only of wood. This should be remembered when analysing and/or comparing the value of various groups of products.

The complexity of analysing all these factors partly explains why the headings “Other products” are frequently so big.

Trade figures can differ vastly from production. This is often the case for packaging.

All the following data refer to ECE member countries.

We will explore the main characteristics of the trade of SPWPs through selected examples.

 

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UN-ECE 2000 - 7

Furniture: a separate sector In value, the wood furniture sector alone is twice as big as all the other SPWPs together.

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0

5000

10000

15000

20000

Imports Exports

Wood Furniture Other Wood Products

Value in million $

Source: Comtrade 2000

UN-ECE 2000 - 8

FurnitureThe main furniture sub-sectors identified in international statistics are: upholstered

seats, bedroom, kitchen and office furniture and chairs. All others are included in the large “Other Wooden Furniture” heading.

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Source: Comtrade, 2000

Imports and exports of wood furniture by ECE countries, 1998

Imports

15%

8%

8%8%

42%

19%

Other wooden furniture Upholstered seats Bedroom furniture

Kitchen furniture Office furniture Chairs

Exports

14%

11%

9% 4%

22%

40%

UN-ECE 2000 - 9

Furniture

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Furniture is a product with a high value-added ratio.

In some types of furniture, the wood material used is the very core of the value of the piece of furniture,

in others, like some upholstered chairs, the proportion of wood, in value and volume, is minimal.

UN-ECE 2000 - 10

Furniture trade: Imports

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The United States is the world’s main importer of furniture (30% of the total import of ECE countries), followed by Germany and France

Source: Comtrade, 2000

0 1000 2000 3000 4000 5000 6000

DenmarkSw edenNorw ayCanadaAustria

NetherlandsSw itzerlandBelgium and

United KingdomFrance

GermanyUnited States

million $

1998

UN-ECE 2000 - 11

Furniture trade: Exports from ECE Members

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Italy is the leading exporter with 26% of the total exported

Source: Comtrade, 2000

0 1000 2000 3000 4000 5000 6000

AustriaUnited

SwedenSpain

USABelgium,

FrancePoland

DenmarkCanada

GermanyItaly

million $

1998

UN-ECE 2000 - 12

Other wood products traded in the ECE countries

P - M D E S C L O S For e s t P r oduc ts C ons ulta nts

To avoid a confusion we will call “Wood Products” all SPWPs other than furniture.

Wood Products traded by ECE countries, 1998

Within the wood products sector, the value of trade in joinery and carpentry is the highest.

“Joinery and carpentry” includes a wide range of products such as windows, doors, assembled flooring, concrete forms, shingles and shakes.

0 1000 2000 3000 4000 5000

Tools and handlesBarrels, casks

TablewareFrames for pictures

Marquetry

Packing cases, palletsProfiled wood

Other articles of woodJ oinery & carpentry

Exports

Importsmillion

$

UN-ECE 2000 - 13

Wood Products trade: Imports of ECE Countries

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Source: Comtrade, 2000

0 500 1000 1500 2000 2500 3000 3500

SpainSwitzerland

AustriaNetherlands

CanadaBelgium and

ItalyFrance

United KingdomGermany

United States

million $

1998

UN-ECE 2000 - 14

Market profile: EU

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Since the negative results of 1993-1994, the EU15 balance of trade of SPWPs has been positive.

Source: COMEXT, 1999

-0,5

0,0

0,5

1,0

1,5

89 90 91 92 93 94 95 96 97

Billion Euro

UN-ECE 2000 - 15

Market profile: EU

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EU’s exports of SPWP are in steady increase

Source: COMEXT, 1999

EU15 Exports of SPWPs

3

4

5

6

7

8

89 90 91 92 93 94 95 96 97

million ECU

UN-ECE 2000 - 16

Market profile: EU

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In 1997, individually, only two products had a positive balance: coopers’ products (barrels) and furniture, while wood mouldings, pallets and cases and joinery and carpentry were negative. The contribution of the furniture and seating (mainly Italian) is out of proportion with the other headings and has the major weight on the positive side.

Source: COMEXT, 1999-1000

-500

0

500

1000

1500

2000

2500

89 90 91 92 93 94 95 96 97

mill

ion

EC

U

Profiled wood

Frames for paintings

Packing cases

Barrels

Tools, handles

Joinery and carpentry

Tableware

Marquetry

Other articles

Furniture & seats

UN-ECE 2000 - 17

Market profile: EU

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France and USA make up 90 % of the total ECE coopers’ products export (France 66%, USA 14%). In 1997, the French production represented more than 500.000 barrels.

EU15 trade of cooper’s products (million ECU)

Source: Comext, 1999

0

20

40

60

80

100

120

89 90 91 92 93 94 95 96 97

Imports

Exports

UN-ECE 2000 - 18

Market profile: USA

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As shown before, the United States is the largest importer of SPWPs, including furniture, and the second largest exporter behind Canada.

Since 1991, both imports and exports have been in constant growth, with a negative balance of trade for all SPWPs.

USA trade of SPWPs, excluding furniture

Source: Comtrade, 2000

0

500

1000

1500

2000

2500

3000

3500

1991 1992 1993 1994 1995 1996 1997 1998

mill

ion

$

Imports

Exports

UN-ECE 2000 - 19

Market profile: USA

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In the wood products sector, the two groups with the highest trade value are profiled wood (mouldings), joinery and carpentry, they account for around 60% of imports and exports.

USA imports of SPWPs, excluding furniture

Source: Comtrade, 2000

0 200 400 600 800 1.000 1.200 1.400

Tools, handles

Tableware

Barrels

Packing cases

Marquetry

Profiled wood

Other articles

Joinery and carpentry

million $

UN-ECE 2000 - 20

Market profile: USA

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US imports of profiled wood were multiplied by 2.2 between 1991 and 1998. Canada is the main supplier.

Source: Comtrade, 2000

0

100

200

300

400

500

600

700

mill

ion

$

1991 1992 1993 1994 1995 1996 1997 1998

USA imports of profiled wood 1991 - 1998

UN-ECE 2000 - 21

Market profile: USA

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The breakdown of US imports of profiled wood changed substantially during the last 10 years. The shares of Canada and Mexico were reduced while Chile had a spectacular growth and Argentina started supplying in 1995.

Source: Comtrade, 2000

199148%

1%

30%

5%

2%

14%

Canada Chile Mexico

Indonesia Brazil Others

199829%

18%14%

9%

9%

21%

USA imports of profiled wood 1991 - 1998

UN-ECE 2000 - 22

Market profile: USA

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Exports of joinery and carpentry products from the USA are much smaller than imports. Two countries (Canada and Japan) make up 76% of the total export.

Source: Comtrade, 2000

0

200

400

600

800

1000

1200

1400

1991 1992 1993 1994 1995 1996 1997 1998

mill

ion

$

Export Import

USA trade of joinery and carpentry products

UN-ECE 2000 - 23

ConclusionIn the ECE region the trade in SPWPs is growing faster than the trade in primary products. Many

major forest products producers are seeking to maximize value-added processing and minimize exports of primary products. This trend is particularly evident in South-East Asian countries.

The increasing importance of secondary processing merits attention because focus on only primary-processed products gives too narrow a view on wood products production, consumption and trade in the ECE region.

The statistics on primary processing, e.g. sawnwood production, only give a partial picture of reality. Trade and especially production of SPWPs are difficult to measure due to imprecisions in identifying the contribution of wood, in value or volume, in semi-finished or final products.

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