News | 21.10.2022
Following the publication of ITTO's bi-monthly tropical timber market report and the latest IMM report, we summarize here the main trends observed in tropical timber markets.
The most recent EU27 trade data to end July this year shows that imports of tropical wood and wood furniture products were still at historically high levels in the early summer months this year. However, imports were slowing from the peak reached in May.
Now there are signs of recession ahead, particularly as the war in Ukraine is contributing to huge increases in energy prices and business and consumer confidence is being hit by expectations of higher interest rates to control inflation.
Central and West Africa
With the slowdown in demand in China log stocks have accumulated in the port and there are reports that degraded logs, no longer suitable for export, are being purchased by local mills. All producers who were heavily committed to the Chinese market are feeling the effects of the weakening demand in the Chinese market and this is likely to spill over to price volatility.
However, the container shortage is no longer an issue, empty containers are readily available.
There is also a jump in French sawnwood imports from Gabon.
Regarding Indonesia, the second 2022 IMM (Independent Market Monitoring) report specifically analyzes trade between Indonesia and the European Union. Trends for the first quarter of 2022 are presented.
In China, there is increasing pressure to maintain steady exports and the authorities will introduce policies to stabilise foreign trade and help enterprises. The Ministry of Commerce will implement a new round of foreign trade policies to ensure that this year's goal of maintaining stability and improving foreign trade is achieved.
Small producers and rural property owners from the nine states in the Legal Amazon are eligible to benefit from the Amazon Project, the “Forest+ Conservation” modality. Selected participants will receive financial incentives for conservation efforts. This project is a partnership between the Ministry of Environment (MMA) and the United Nations Development Program (UNDP).
For detailed news on international tropical timber markets, please refer to the ITTO Market Report for the first half of October.