European WoodBased Panels Market Prospects UNECE Timber Committee
European Wood-Based Panels Market Prospects UNECE Timber Committee Market Discussions 24 -25 th September 2002 Geneva, Switzerland By Mr. Olli Koskiranta Vice-President, Business Development Finnforest Corporation
Contents n European Woodworking Industry & Companies n WBP* Consumption Structure in Europe n WBP Production, Prices & Consumption in Europe** n Plywood n OSB n Particle board n MDF n Market Observations in Europe vs. North America n Future Trends * WBP is wood-based panels ** Including Russia 2
European woodworking industry excluding furniture n Production: 60 billion EUR/year n Workforce: 540 000 workers n Over 100 000 companies n Typical SME-sector, with many sub-sectors 3
Major Wood Working Industry Companies in Europe Finnforest - Moelven Egger Sonae Industria UPM-Kymmene Wood Products Pfleiderer Stora Enso Timber Swiss Krono (est. ) Kronospan (est. ) Kunz (est. ) Frati (est. ) Finsa (est. ) Nexfor Södra Million € Assi. Domän 0 200 400 Solid Wood Source: FF 600 800 Panels 1000 1200 1400 1600 1800 EWP Building systems Other 4
Wood-based panels Consumption Structure in Europe 1990 - 2002 60 Other fiberboard 50 MDF Million m 3 40 30 Particle board 20 10 OSB Plywood Source: FF, FAO, UNECE, WPI 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 0 5
European Plywood Production & Consumption 1998 -2003 7 000 6 000 5 000 4 000 3 000 2 000 1 000 0 1997 1998 SW Ply Prod. Sources: FF, FAO, UNECE, WPI, 1999 HW Ply Prod. 2000 2001 SW Ply Cons. 2002 2003 HW Ply Cons. *HW plywood includes tropical, birch and other temperate plywood 6
Finnish Softwood & Birch Plywood Price Development 1990 -2002 900 800 €/m 3 700 600 500 400 300 20 0 2 1 '1 -5 20 0 0 20 0 9 19 9 8 19 9 7 19 9 6 19 9 5 19 9 4 19 9 3 19 9 2 19 9 0 200 FIN Birch Ply Source: Finnish Customs FIN SW Ply 7
European OSB Production, Price & Consumption 1998 -2003 2 500 300 250 2 000 1 500 150 1 000 EUR/m 3 1000 m 3 200 100 50 0 0 1998 Production Sources: FF, FAO, UNECE, WPI 1999 2000 2001 Consumption 2002 2003 Est. Price av. * 8
European Particleboard Production, Price & Consumption 1998 - 2003 45 000 120 40 000 100 35 000 80 25 000 60 20 000 15 000 EUR/m 3 1000 m 3 30 000 40 10 000 20 5 000 0 0 1998 1999 Production Sources: FF, EPF, FAO, UNECE, WBI, *EUWID 2000 2001 Consumption 2002 2003 GER Price av. * 9
European MDF Production, Price & Consumption 1998 -2003 12 000 220 215 10 000 210 1000 m 3 8 000 200 195 6 000 190 EUR/m 3 205 185 4 000 180 175 2 000 170 0 165 1998 Production Sources: FF, EPF, FAO, UNECE, WBI 1999 2000 2001 Consumption 2002 2003 UK Price av. * 10
Engineered wood products and wood-based panels: North America vs. Western Europe North America (US+CDN) Population 300 1) million GDP 12 189 2) Billion EUR Western Europe (EU-15+CH&N) Population 390 1) million GDP 8 815 3) Billion EUR Wood-based panels: Plywood m 3 OSB 19, 3 Mil. m 3 Particleboard m 3 MDF 4, 4 Mil. m 3 Total 51, 4 Mil. M 3 Wood-based panels: Plywood m 3 OSB m 3 Particleboard m 3 MDF m 3 Total M 3 16, 6 Mil. 11, 1 Mil. 5 Mil. 1, 6 Mil. 29 Mil. 7, 5 Mil. 43, 1 Mil. =EUROSTAT forecast US&CAN; EU-15 + SUI&NO =EU-15 only (EUROSTAT forecast) Engineered Wood=Census, Products: Engineered Wood Products: Sources: FAO, RISI, APA, Jaakko Poyry 1) 2) 3) 11
European Plywood vs. MDF and OSB Consumption 1989 -2001 MDF & OSB Consumption 10 9 8 7 6 5 4 3 2 1 0 1, 8 2, 2 4, 0 3, 5 1989 2001 HW Plywood Sources: FF, EPF, FAO, UNECE, WBI, SW Plywood 10 9 8 7 6 5 4 3 2 1 0 1, 7 Million m 3 Plywood Consumption 8, 4 0, 2 1, 6 1989 MDF 2001 OSB 12
Plywood and OSB End Use Changes by Segments in USA 1989 - 2001 Plywood Consumption 19. 6 14. 4 15 10 5 0 3, 5 1989 Industry New Building Source: RISI 3 20 Million m 3 20 OSB Consumption + 2. 0 18. 6 15 13, 0 10 5. 5 5 5, 3 + 7. 9 5, 1 0 2001 Renovation 1989 Industry 2001 Renovation New Building 13
Biggest European wood-based panels producers by capacity in 2001 M&P Kaindl/Kronospan Sonae Egger Swiss Krono Pfleiderer Hornitex Frati Finsa Nexfor Unilin Spano Schauman Kunz Fantoni Wyerhaeuser Constantia Finnforest Plywood Particleboard MDF Fibreboard OSB Total European market 50 Mm 3 0 Sources: FF, EPF, WBI, 1000 2000 3000 4000 5000 6000 14
Future Trends n n The role of Russia & former East-Europe as panel producer is increasing – as is consumption in that area. Manufacturing plants are growing in size and simultaniously becoming multi-product manufacturing centers North American plywood will not be back to Europe, Asian plywood decreases its volume and Central - and South European plywood production will become niche business. Wood chip raw materials will increase in price (regionally) due to the growing popularity of bio-energy (subsidies). 15
Future Trends n n n n Price competition in bulk products Competition by substitutes Construction increasingly R&R Demand shifts to DIY chains Industry, distribution & customer consolidation Building systems: Engineered Wood Green values & recycling Note! Demand supply forecasting becomes more and more relevant for investment and business – Where to get reliable information and statistics? 16
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