European timber exports to the US were down 20% in the first five months of 2003 compared with the same period last year, according to industry newsletter Random Lengths International.
European exporters shipped large volumes last year in the hope of capitalising on the imposition of 27.2% duties on Canadian softwood lumber entering the US. But Canada’s decision to keep up production levels, despite the duties, left US markets oversupplied with wood and prices dipping.
The recent North American Free Trade Agreement ruling on the anti-dumping element of the duties did not create much interest among European exporters.
Prices in the US, supply/demand in European markets and the relationship between the euro and the dollar are proving to be more important issues influencing export volumes. Poor demand in Germany and the Benelux countries coupled with tenuous overseas markets, such as Japan, means exporters are keeping one eye open for US opportunities.
Some US importers report that European volumes rose in late June and early July as exporters looked to take advantage of rising prices.
