Prospects for the European plywood markets still uncertain

Source:
Fordaq
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While plywood importers are generally satisfied with the market situation in Central and Northern Europe in the first half of 2015, there is still uncertainty about the future. There is particular concern about the French market which has again disappointed in recent months. But other markets are also being slow to pick up momentum this year.

After a brief growth spurt in 2014, the Eurostat construction production index has largely stagnated –in some months even softened a little – from the level reached in June 2014. The index value in all large EU countries with the exception of Poland, Germany and the UK is still below 100 – in other words construction production is lower than in the base year 2010. The Netherlands is the only construction market to have made significant gains so far in 2015.

Uncertainty in Europe's plywood trade is also fed by exchange rate fluctuations – especially in relation to the euro against the background of severe economic problems in Greece. Container rates remain volatile. There are also continuing reports of slowing economic conditions in other major consuming countries, including China and Russia, raising the prospect that prices might weaken in the future. Taken together, these factors continue to discourage more far-reaching moves by European plywood importer to build stocks.

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