Analysis of the forest products market in 2003 and a forecast for 2004 has been carried out by the United Nations Economic Commission for Europe (UNECE) timber committee.
Key findings were that forest products markets in the region were forecast to remain at high volumes in 2003 and that North American wood product demand is high because of strong US housing construction.
It also reported that illegal logging denies revenue to governments, industries and forest owners, forces prices down and compromises sustainable forest management.
Wood energy, the committee summarised, should continue to be promoted by governments, although it acknowledged the concern of some industry sectors for raw mateial competition.
The committee said the global area of certified forestland is now around 160 million ha and that public procurement policies may become important drivers in increasing that amount.
The sawn softwood trade is being transformed with expansion into further processsed sawnwood products, while in the UNECE region increasing imports of hardwood furniture are displacing domestic production.
Wood-based panel production is at record levels, the committee said, but the industry faces overcapacity and low prices.
