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Report
from the UK
Monetary Policy Committee lifts rates amid rising
inflation
The minutes of the 9-10 May Monetary Policy Committee (MPC) meeting, which resulted in rates being increased by
0.25% to 5.5%, noted that consumer price index (CPI) inflation in a 12 month period ending March 2007 was
3.1%, greater than the expected level of 2%. The MPC also hinted a further rate increase late in 2007. The
minutes indicated that retail sales pointed to steady to increasing levels in retail sales since May 2004, and that
data on housing markets was mixed.
KPMG finds high confidence among UK SMEs
KPMG recently reported that business confidence among small to medium sized enterprises (SMEs) is at its highest
levels since 2004. Thompson Financial reported that 64% of SMEs polled were
optim istic about the outlook for SMEs over the next twelve months. According to the UK
TTJ, however, this optimism did not extend to UK wood and timber product manufacturers.
UK mortgage market slowing
Following four interest rate rises since August 2006, the mortgage market was showing signs of
slowing. The Council of Mortgage Lenders said that lending was stabilizing after a period of major growth. Increases in
housing prices had also slightly slowed in May 2007, and the annual housing price had slipped from 8.85% to 6.7%
in April 2007.
Wickes performance in line with expectations
Wickes Ltd.¡¯s parent company, Travis Perkins, reported that total turnover for the first four months of 2007 was up
13.2% in April, group turnover was up 13.9% compared to figures for April 2006, and the company was trading in
line with expectations.
TTJ reports timber products price increase offset by costs
A market report published in the April/May 2007 edition of the TTJ revealed that the increase in timber product
prices had been offset by the strength of the UK sterling against the US dollar and euro. The TTJ figures showed a
rise in output prices of wood and wood products by 8.2%, over a twelve-month period ending in March 2007.
New arm of BWF to promote wood windows
The TTJ reported that the British Woodworking Federation (BWF) had launched the Total Support
Services (TSS), a scheme to help members secure chain of custody certification and assist in gaining window energy
ratings.
EUROPE
MARKET
Plywood output climbs 2.2% in 2006
As reported by EUWID, plywood output climbed 2.2% to around 4m m3 in 2006 within the 75 member countries of
the F¨¦d¨¦ration Europ¨¦enne de l¡¯Industrie du Contreplaqu¨¦ (FEIC). Plywood consumption in the EU increased by
1.9%, and plywood imports rose 4.7%. Russia accounted for 25% of imports, Brazil and China accounted for 24%
each, and 6% of imports came from Indonesia and Malaysia.
Spanish sawn timber imports drop 27%
During 2006, imports of tropical sawn timber to Spain declined by 27% to 390,894 m3, and dropped in value by
23.5% or EUR164.6m. The figures revealed that imports of sawn timber from Africa, which accounted for 62% of
Spanish imports, declined by 27% to 241,025 m3. Imports declined from Cameroon by 28%, Brazil by 31%, Ivory
Coast by 26%, Republic of Congo by nearly half, and Gabon by 4%.
Following the trend for sawn timber, roundwood imports from Africa also decreased by 22%. While there was an
increase in supply by 9% from the Central African Republic, imports from other African countries were in
decline. In particular, imports from Republic of Congo decreased by 14%, Gabon by 39%, and Cameroon by
17%.
These trends followed general trends in Europe for 2006, where declines were reported for both tropical logs and
sawnwood. However, Spain¡¯s trends showed greater decline than the European average (17% decline for logs
and 21% for sawnwood). The greater than average trends in Spain were caused by strong competition from Chinese timber imports and supply shortages for meranti wood
from South East Asia.
Stora Enso Timber increases corporate turnover by EUR 3 billion
During the first three months of 2007, Stora Enso Oyj¡¯s corporate turnover increased by almost 7% or EUR3.85
billion, reports EUWID. This was largely driven by Stora Enso Oy, the wood products division of Stora Enso
Oyj. The wood products division generated EUR52.7 million in the first quarter of 2007, its highest profit in history. The
company noted that the reasons for the trend were higher sales for products, changes to the product portfolio,
regional shifts in sales, and internal restructuring. Keeping
in line with 2006 operations, the wood supply business division delivered about 11m m3 of wood to its mills in
Brazil and Europe in the first quarter of 2007.
Vainge awards more agreements in China
In recent months, Vinge Innovation awarded five additional licensing agreements for gluefree laminate
flooring. Licensing agreements were awarded to Chinese companies and subsidiary companies
including Changzhou Dehao Decoration Materials Co. Ltd in Changzhou and Vohringer Wood Product Co. Ltd in
Shanghai. Another license for wood flooring was awarded to CFloor, which has its
headquarters in Beijing.
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