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Wood Products Prices in The U.S. 

16-30th November 2010

Report from North America


 US tropical timber imports

Sawn hardwood imports remain low
The value of sawn tropical hardwood imported into the US remains well below the levels seen before 2009. The US imported US$49.1 million worth of sawn tropical hardwood in the third quarter of 2010, up 2.4% from the previous quarter and 19% increase from the same period in 2009, but 41% below the third quarter of 2008. Ipe imports fell by 10.3% from the second quarter, while imports of balsa, mahogany and acajou d¡¯Afrique saw a slight increase.

September imports of sawn tropical hardwood were 16,901 cu.m, down from 17,382 cu.m in August. The top three imported species were balsa (4,301 cu.m), ipe (1,776 cu.m) and mahogany (1,645 cu.m). Imports of most species declined from August with the exception of ipe, keruing, red meranti, cedro, virola and mahogany.

Year-to-date, import volumes of tropical sawnwood increased by 8% compared with 2009. Among the species that gained significantly in the period to September 2010 are jatoba (+84%), acajou d¡¯Afrique (+60%), red meranti (+44%) and keruing (+36%).

Hardwood plywood imports on the mend
US imports of hardwood plywood are set to exceed 2009 volumes, based on year-to-date September imports of US$963 million, which is 36% above the same period last year. China accounts for 55% (US$533 million) of total imports year-to-date. In September 2010, imports from China were US$55.8 (+25% year-to-date) and from Indonesia US$17.6 million (+100% year-to-date). September imports from Malaysia were US$8.6 million (+167% year-to-date), from Ecuador US$2.9 million (+54% year-to-date), and from Brazil US$1.6 million (+3% year-to-date).

Hardwood moulding imports continue to fall
Hardwood moulding imports declined again in September to US$16.3 million, a 5% drop from August. However, year-to-date imports increased by 6% to US$140.1 million compared to the same period in 2009. China increased shipments substantially from 2009. Imports from China were US$5.5 million in September (+24% year-to-date). Brazil supplied US$4.4 million (-6% year-to-date), Malaysia US$1.3 million (+21% year-to-date) and Indonesia US$946,000 (+32% year-to-date).

September imports from Brazil of jatoba moulding were US$2.5 million (-13% year-to-date), of cumaru moulding US$296,000 (-11% year-to-date), and of ipe moulding US$596,000 (-5% year-to-date). Supplies of cumaru mouldings from Peru declined from August to US$215,000 (+329% year-to-date). Mahogany moulding imports from Peru were just US$160,000 in September (-17% year-to-date), compared with US$320,000 from Paraguay. Overall US imports of cumaru moulding are up by 34%, while jatoba, ipe and mahogany moulding imports are down compared to the same period last year.

Upswing in hardwood flooring imports
September hardwood flooring imports were the highest since June 2009. Flooring imports remain far below levels seen in recent years, but the upswing in September is mainly due to an increase in shipments from Brazil and Malaysia, while imports from China and Canada declined. Year-to-date September imports were US$12.3 million, down 39% compared to the same period in 2009. Hardwood flooring imports from Brazil were US$434,000 in September, up by 217% from August. Malaysia shipped US$727,000 worth in September, up by 419% from August. On a year-to-date basis, imports from Brazil are at the same level at last year, Malaysian exports increased by 5% and Chinese exports to the US are down by 69%.

Hardwood resolution passed by US Senate
A resolution that recognises US hardwood products as a sustainable resource was unanimously passed by the US Senate after having been approved by the House of Representative last September. The resolution identifies US hardwoods as a sustainable, abundant and legal resource. It also recommends giving full consideration to US hardwoods in any programme that promotes the construction of environmentally preferable public, commercial or residential buildings.

AHEC commissions LCA study
The American Hardwood Export Council (AHEC) has commissioned a consultant firm to conduct life cycle assessments (LCA) for American hardwood species. AHEC announced that the study not only collects life cycle inventory data on sawnwood, but also veneer and finished products such as flooring, doors and furniture. The study will compare US hardwoods with alternative materials in terms of environmental impact and carbon footprint.

The LCA results will help manufacturers who rely on US hardwoods in preparing Environmental Product Declarations (EPD) for their products in line with international ISO standards. EPD is becoming an increasingly important means to communicate the environmental performance of products. Several green building initiatives, including LEED in the US, use EPDs to evaluate the materials and products used in the building sector.

Tropical sawnwood markets and prices
Demand for most species has reportedly slowed significantly since the end of summer. Sales of jatoba, mahogany, acajou d¡¯Afrique and sapelli are down. Flooring manufacturers have reduced purchasing and demand from the moulding and millwork sector remains subdued. Generally prices for tropical sawnwood have remained stable from October. Availability of tropical sawnwood is good with the exception of ipe. Ipe prices may increase further as the Brazilian real is gaining strength. At the same time the log supply situation to Brazilian mills remains tight.

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Abbreviations

LM       Loyale Merchant, a grade of log parcel  Cu.m         Cubic Metre
QS        Qualite Superieure    Koku         0.278 Cu.m or 120BF
CI          Choix Industriel                                                       FFR           French Franc
CE         Choix Economique                                                        SQ              Sawmill Quality
CS         Choix Supplimentaire      SSQ            Select Sawmill Quality
FOB      Free-on-Board     FAS            Sawnwood Grade First and
KD        Kiln Dry                               Second 
AD        Air Dry        WBP           Water and Boil Proof
Boule    A Log Sawn Through and Through MR              Moisture Resistant
              the boards from one log are bundled                      pc         per piece      
              together                      ea                each      
BB/CC  Grade B faced and Grade C backed MBF           1000 Board Feet          
              Plywood   MDF           Medium Density Fibreboard
BF        Board Foot F.CFA         CFA Franc        
Sq.Ft     Square Foot              Price has moved up or down

Source: ITTO'  Tropical Timber Market Report

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