1. UNECE TIMBER COMMITTEE Fifty-ninth session 2-5 October 2001 Secondary processed wood products markets, including engineered wood products

2. UNECE TIMBER COMMITTEE Fifty-ninth session 2-5 October 2001 Secretariat introduction by Mr. Ed Pepke, Forest Products Marketing Specialist, UNECE & FAO Timber Section European flooring market by Mr. Filip De Jaeger, Deputy Secretary General, CEI-Bois Discussion

3. UNECE TIMBER COMMITTEE Fifty-ninth session 2-5 October 2001 Highlights from Forest Products Annual Market Review, 2000-2001 World trade of secondary processed wood products is expanding at a faster rate than trade in primary wood products. U nited States, Germany, France, United Kingdom and Japan account for 60% of world imports of secondary processed wood products. Changing import supply patterns to these markets differ by product and by country.

4. UNECE TIMBER COMMITTEE Fifty-ninth session 2-5 October 2001 Highlights from Forest Products Annual Market Review, 2000-2001 Imports of secondary processed wood products from tropical producers are replacing primary product imports from these producers. Comparative advantage in the manufacture of secondary processed wood products is likely to shift increasingly to regions with low production costs. The value of world trade in wooden furniture ($29 billion) exceeds that of sawnwood ($25 billion) and wood-based panels ($16 billion).

5. UNECE TIMBER COMMITTEE Fifty-ninth session 2-5 October 2001 Highlights from Forest Products Annual Market Review, 2000-2001 Engineered wood product markets are gaining market share in North America; for example, 33% of wood floor area is now built with wooden I-beams. North American glulam production increased by 14% in 2000. Laminated veneer lumber (LVL) production in North America declined by 6% in 2000.

6. UNECE TIMBER COMMITTEE Fifty-ninth session 2-5 October 2001 EU imports of tropical primary and secondary wood products from tropical producing countries, 1995-1998 19951998 Primary products 1 2,953 2,605 (Million $) -12% Secondary products 2 1,2721,641 (Million $) +29% 1Logs, sawnwood, plywood, veneers. 2Wooden furniture and parts, builders woodwork, other processed secondary wood products, cane and bamboo furniture and parts. Source: ITTO, 2000.

7. UNECE TIMBER COMMITTEE Fifty-ninth session 2-5 October 2001 Four drivers of international trade in secondary processed wood products Exporters of primary products are adding value to their basic products to improve profitability and to avoid the strong cyclical movements associated with commodity products. Shifts in manufacturing location reflecting regional differences in cost competitiveness.

8. UNECE TIMBER COMMITTEE Fifty-ninth session 2-5 October 2001 Four drivers of international trade in secondary processed wood products Technology transfer facilitates regional shifts in production. International agreements reducing tariffs and other trade barriers are creating new international trading opportunities.

9. UNECE TIMBER COMMITTEE Fifty-ninth session 2-5 October 2001 Engineered Wood Products Glulam I-beams Laminated Veneer Lumber (LVL)

10. UNECE TIMBER COMMITTEE Fifty-ninth session 2-5 October 2001 Glulam (glued, laminated sawnwood beams)

11. UNECE TIMBER COMMITTEE Fifty-ninth session 2-5 October 2001 Glulam (glued, laminated sawnwood beams) World glulam production increased by 19% in 2000 to a record 3.1 million cubic metres. Japanese imports of glulam increased 55% in 2000. North American glulam production increased by 14% in 2000 because higher demand in N. America, Japan and Europe.

12. UNECE TIMBER COMMITTEE Fifty-ninth session 2-5 October 2001 Glulam (continued) Standard sizes growing in popularity in both residential and non-residential building construction. APA-the Engineered Wood Associations outlook for North American domestic market growth is 1% to 3% annually.

13. UNECE TIMBER COMMITTEE Fifty-ninth session 2-5 October 2001 Glulam production by region and countries, 1995-2000 1000 m 3

14. UNECE TIMBER COMMITTEE Fifty-ninth session 2-5 October 2001 Wooden I-beams

15. UNECE TIMBER COMMITTEE Fifty-ninth session 2-5 October 2001 Wooden I-beams 33% of the wood floor area in United States and Canadian homes is built with I-beams that have substituted for solid sawn joists or beams. North American I-beam production declined 3% in 2000 1/3 of the decline can be attributed to fewer housing starts. 2/3 of the decline was due to a loss in market share to conventional sawnwood at lower prices in 2000

16. UNECE TIMBER COMMITTEE Fifty-ninth session 2-5 October 2001 Laminated veneer lumber (LVL)

17. UNECE TIMBER COMMITTEE Fifty-ninth session 2-5 October 2001 Laminated veneer lumber (LVL) LVL production in North America declined 6% in 2000 to 1.4 million cubic meters. 2000 production drop due to the decline in I-beam production (60% of LVL is used for flanges of I-beams). 3% to 4% annual growth forecast by APA.

18. UNECE TIMBER COMMITTEE Fifty-ninth session 2-5 October 2001 Next presentation: Mr. Filip De Jaeger, CEI-Bois on European Flooring Market Then discussion on secondary processed wood products and engineered wood products.