European Union
BC softwood commodity product sales in E.U.1
(Softwood lumber, plywood, OSB, MDF and Particleboard)
Market type
- 5th largest overseas market for B.C. softwood commodity products (by volume) after China, Japan, Taiwan and South Korea.
- Mature housing sector with niche opportunities, particularly for high quality products.
B.C. position
- Minor overall supplier at less than two percent of total imports of manufactured softwood products, but traditionally a strong market for western red cedar and Douglas-fir.
Export sales
- 2010: 237,000 cubic metres of commodity wood products valued at $158 million.
- 2011 (through June): 120,000 cubic metres valued at $77 million.
Market overview
Europe’s recovery from the recession has been very slow, but the main concern is the sovereign debt crisis in the euro zone. Greece, Ireland and Portugal are receiving assistance from European funds and the IMF. Austerity measures to reduce public debt are slowing domestic demand in many countries. Germany, France, the UK and the Nordic countries on the other hand, are well on their way to recover from the recession.
Investment in new housing and non-residential construction in many countries has fallen dramatically since 2008. Expenditure has shifted from new construction to repair and renovation of existing stock, especially for energy efficiency improvements. In the UK, reduced public spending is expected to hold back house construction.
EU imports of softwood lumber recovered in 2010, but imports from B.C. increased only slightly over 2009 to about 233,000 cubic metres. Exports of western red cedar, SPF and Douglas-fir rose compared to the previous year, while hem-fir shipments to Europe declined.
Market strategy
FII continues to support market development for value added, western red cedar and some structural products in Europe. Canada Wood Group will continue to promote the B.C. industry’s prospects in the United Kingdom, Germany, the Netherlands and Eastern Europe. As a leader in communicating B.C.’s environmental standards and regulation, FII keeps a close watch on European trends related to green building and environmental product declarations and changes to codes and standards.
Select accomplishments 2010/11
- Over $1.5 million in additional product sales were achieved due to advertising and promotional efforts and lead generation through major trade events.
- Research was completed into emerging niche opportunities in Eastern Europe (Ukraine, Turkey, Russia).
Activities in 2011/12
In 2011-12 activities are shifting slightly to expand the focus on opportunities in the Netherlands and Belgium for western red cedar and into Eastern Europe for valueadded products. Traditional markets in the United Kingdom and Germany continue to receive promotional support. A watching brief on environmental issues and code development will be maintained to ensure access for B.C. species and products. Activities are focusing on trade shows, advertising and promotion in 2011-12.
For access to FII-funded market research and related data for the E.U. market, click here
For B.C.’s current monthly exports of softwood lumber, by species, to the E.U., click here
1Due to a change in data sourcing methodology, B.C. market share in the EU is only available from 2005.
