16-30 June 2016

Top story

Brexit to impact tropical imports in the short term

The UK’s decision to leave the EU, so-called “Brexit”, has created a crisis for the global economy. Brexit will have significant implications on the tropical timber sector. The UK is the largest importer of tropical timber in the EU with around 25% of the total value imported into the EU from tropical countries.
Uncertainty and a slowing of economic growth in the UK and the EU will have an immediate impact on imports of wood products from tropical countries. Longer term, the prospects for tropical timber in the UK and the EU will depend on how quickly the UK and the EU recover from this shock.

Also in this issue

  • Convergence of factors drives sapele and sipo prices lower
  • Endorsement for Malaysia’s latest MC&I for forest plantations
  • Indonesian FLEGT wood products possible by year end
  • Association says Bolivia’s new import regulations disadvantage Brazilian furniture exporters
  • Labour shortage hits Chinese manufacturers
  • Fourth consecutive decline in US hardwood plywood imports

Data snapshot

Fall in US plywood Imports

Data Source: US Department of Commerce, US Census Bureau, Foreign Trade Statistics

Lower plywood imports from tropical producers
US hardwood plywood imports fell further in April, the fourth consecutive month-on-month decline. Lower plywood imports from China and Indonesia were largely responsible for lower April figures. Year-to-date plywood imports from Malaysia were down 21%.