Market Information Service

Towards greater transparency in the tropical timber markets

The ITTO Tropical Timber Market (TTM) Report, an output of the ITTO Market Information Service (MIS), is published in English every two weeks with the aim of improving transparency in the international tropical timber market. The TTM provides market trends and trade news from around the world, as well as indicative prices for over 400 tropical timber and added-value products.


 

 

1-15 February 2011


Top story

Wood-composites to dominate growth in decking market

The Freedonia Group has updated its forecasts for the US decking market (“Wood and Competitive Decking” report). Decking demand is expected to grow by 2.7% annually to 2014. Between 2004 and 2009 demand declined on the average by -0.6% per year.

Wood continues to account for the majority of the volume consumed, but much of the anticipated market
growth will be in wood-plastic composites. Wood
decking is forecast to grow just 0.5% per year to 2014,
while wood-plastic composite decking is expected to grow 12.9% annually. The market share of wood in total decking stood at 86% in 2009 while in 2014 it will be 77%, according to Freedonia’s forecasts. Consumers perceive wood-plastic composites as environmentally friendly and hidden fastener systems make the installation of decks easy.

Tropical wood is expected to have higher demand
growth than softwood species. Ipe is expected to remain popular and the residential market will provide new growth opportunities for tropical wood decking.

 

 

Also in this issue

  • Export prices climb for major Ghana species
  • India emerges as top importer of Sarawak logs
  • Bullish prospects for Sarawak plywood prices
  • Call for revamp on trade and export of rattan in Indonesia
  • Indian furniture industry relies more on domestic plantation hardwoods
  • Shortfall in supply of Myanmar teak
  • Brazilian furniture industry upbeat on growth prospects in 2011
  • Guyana surging log exports prop up earnings in 2010
  • Total forest industry output in China surpasses RMB 2,000 billion in 2010
  • European wood window market stabilised in 2010
  • UK buyers anticipate rising plywood prices

Data Snapshot

Production of tropical roundwood by region, 1995-2010

 

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Following the peak of 90 million cu.m in 2008, production of tropical roundwood in Southeast Asia has been falling ever since. In Latin America/Caribbean, production declined to a low level of 31 million cu.m in 2006 and has remained flat since, while production in Africa has been hovering at just below 20 million cu.m throughout the previous decade.

According to recent reports, the tight log supply situation in Southeast Asia will continue to prevail. Some of the reasons include tightened policies and enforcement to promote sustainable forest management and production from plantations which has yet to be set into full gear. The continuing tight log supply coupled with bullish demand from China and India have pushed Southeast Asian log prices up. 
 
 

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