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New Market Developer: Forest Products Edition, August

Michigan Dept of Agriculture & Rural Development sent this bulletin at 08/15/2017 09:30 AM EDT

Forest Products Edition

August 2017

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In this Issue:

Did You Know…?
Global Paper Exports
U.S. and Michigan Paper and Wood Product Exports
Forest Product Leading Export and Import Countries
American Hardwood Export Council (AHEC) Hardwood Market Summaries
Upcoming Events

Did You Know…?

- Michigan is a state rich in forest resources? Its 19.3 million acres of forestland cover 53 percent of the state, with 18.6 million considered timberland. Timberland acreage is the fifth largest in the United States.

- Michigan’s most common tree by volume is sugar maple, followed in order by red maple, northern white-cedar, red pine, eastern white pine and northern red oak?

- Michigan’s most common tree by number is balsam fir, followed in order by red maple, sugar maple, northern white cedar, and quaking aspen?

- Michigan’s forest product exports are nearly 500 million per year

- Michigan has contracted offices and partners to assist Michigan companies build their international markets in China, Mexico, Canada, Brazil, United Kingdom, Germany, United Arab Emirates, India, Australia and Chile?

For more information on resources that can help your company grow its international sales, please contact Donna LaCourt, Economic/Community Development Specialist, at lacourtd2@michigan.gov or 517-614-5518.

Global Paper Exports

Global paper exports totaled $154.4 billion USD in 2016, down almost 8% from 2012. European countries account for 56% of global exports followed by Asia (25%) and North America (15%). Germany, China and the United States are the top paper exporters by value. The United Kingdom, Mexico and Vietnam have the highest deficits in the international trade of paper as indicated by the value of the country’s total exports minus the value of its total imports. This indicates a strong demand for paper. The following companies are the largest players in the worldwide paper trade. Each company name is followed by the country where the company is headquartered.

· International Paper – United States

· UPM - Finland

· Oji Paper – Japan

· Stora Enso – Finland

· RockTenn – United States

· Sappi – South Africa

· Smurfit Kappa Group – Ireland

· DS Smith – United Kingdom

· Nippon Paper – Japan

· Svenska Cellulosa Aktiebolaget - Sweden

For more information, click here.

Source: D. Workman 2017. Paper Exports by Country.

U.S. and Michigan Paper and Wood Product Exports

The American Forest and Paper Association indicates that in 2016 the U.S. paper and wood products industry exports totaled $29.4 billion and accounted for about 15% of the industry’s annual sales, with $20.4 billion from paper and $9 billion from wood products. Michigan’s 2016 paper and wood products exports totaled $483.3 million, with $321.9 million from paper and $161.3 million from wood products. Michigan’s 2016 total forest product export values were down more than 4% from 2015, likely impacted by the strength of the U.S. dollar.

For more information on TradeStats Express or International Trade and Competitiveness, visit www.tse.export.gov or click here.

Sources: AF&PA May 2017.

Forest Product Leading Export and Import Countries

The Food and Agriculture Organization of the United Nations recently published a list of the world leading exporters and importers of various forest products based on 2015 data. The list of the top five countries by product is in the full report, and the top countries by product are listed below:

Industrial Roundwood – Top exporter: Russian Federation (16%), Top importer: China (37%)

Wood Pellets – Top exporter: United States of America (28%), Top importer: United Kingdom (48%)

Sawnwood – Top exporter: Canada (23%), Top importer: China (21%)

Wood-based panels - Top exporter: China (17%), Top importer: United States of America (15%)

Pulp for Paper - Top exporter: Brazil (21%), Top importer: China (33%)

Recovered Paper - Top exporter: United States of America (34%), Top importer: China (52%)

Paper and Paperboard - Top exporter: Germany (12%), Top importer: Germany (10%)

To view the full report, click here.

American Hardwood Export Council (AHEC) Hardwood Market Summaries

The AHEC Southeast Asia/Greater China July 2017 market report shows that China continues to globally dominate importer of U.S. hardwood lumber, veneer and logs (up 25.7% to 859 million USD compared to the same period last year). Red oak is China’s leading U.S. lumber species, accounting for just over 39% of imported lumber. South East Asia (SEA) continued to grow, increasing 7.6% to 137 million USD compared to the same period of 2016. Together, SEA and Greater China account for more than 60% of the global U.S. hardwood exports. View the full AHEC SEA/Greater China July 2017 report here.

The AHEC June 2017 European market report indicates that U.S. hardwood lumber to Europe is down more than 6% from the same period last year. White oak, tulipwood and walnut are the leading U.S. hardwood lumber imports, but red oak is gaining acceptance. European GDP growth is level at 1.9% with private consumption (the main growth driver) moderating with inflation eroding household purchasing power. The U.K. and Italy are the largest European markets for U.S. hardwood. The U.K. economy grew at a mere 0.2% compared to the 0.6% European Union average. View the full report here.

AHEC South Asia issued a special report for India sharing that the much anticipation market potential of India for U.S. hardwoods has not been realized, but change may be on the horizon. Some furniture and joinery manufacturers are buying U.S. hardwoods for the first time and are pleased with the product. Tulipwood is of interest due to its versatility and pricing. The overall furniture and joinery sector is unorganized and cottage-based, but growing. The main concentration of organized wooden furniture and handicraft exporters are located in Jodhpur and Jaipur in Rajasthan as well as in Saharanpur in Uttar Pradesh. The main customers of this sector are in Europe and Australia, which demand assurance of legal logging practices. This is leading to the need to find alternative lumber sources where assurance can be provided. View the full AHEC reports on India as well as South Asia, Africa, Middle East and Oceania here and here.