UNECE/FAO FOREST PRODUCTS AN FOREST PRODUCTS UNECE/FAO UNECE United Nations Food and Agriculture Organization Economic Commission for Europe of the United Nations Timber Bulletin Volume LVIII (2005) FOREST PRODUCTS NUAL MARKET REVI ANNUAL MARKET EW, 2004-2005 UNITED NATIOUNITED 2004-2005 EW, REVIEW 2004-2005 UNITED NATIONS NS NS ECE/TIM/BULL/2005/3 United Nations Economic Commission for Europe/ Food and Agriculture Organization of the United Nations UNECE Timber Branch, Geneva, Switzerland Timber Bulletin - Volume LVIII (2005) FOREST PRODUCTS ANNUAL MARKET REVIEW 2004-2005 UNITED NATIONS Geneva, 2005 NOTE The statements made in the articles are those of their authors and do not necessarily correspond to those of the secretariat or the official views of the author’s home countries. Furthermore the designations employed and the presentation of material in this publication do not imply the expression of any opinion whatsoever on the part of the secretariat of the United Nations concerning the legal status of any country, territory, city or area, or of its authorities, or concerning the delimitation of its frontiers or boundaries. The Timber Bulletin has previously consisted of six issues published in hard copy. This has now changed and only one (this Review) continues to be so published. Therefore, the issue numbering has been discontinued and only the volume numbering is used. ABSTRACT The UNECE/FAO Forest Products Annual Market Review, 2004-2005 provides general and statistical information on forest products markets and related policies in the UN Economic Commission for Europe region (Europe, North America and the Commonwealth of Independent States). The Annual Market Review begins with an overview chapter, followed by a description of government and industry policies affecting forest products markets. After a description of the economic situation and construction-related demand in the region, five chapters based on annual country-supplied statistics, describe: wood raw materials, sawn softwood, sawn hardwood, wood-based panels, and paper and paperboard. Additional chapters discuss markets for certified forest products, value-added wood products and tropical timber. In each chapter, production, trade and consumption are analysed and relevant material on specific markets is included. Tables and graphs provided throughout the text present summary information. Supplementary statistical tables may be found on the Market Information Service website within the UNECE Timber Committee and FAO European Forestry Commission website at: http://www.unece.org/trade/timber/. ECE/TIM/BULL/2005/3 UNITED NATIONS PUBLICATIONS ISSN 0259-4323 UNECE/FAO Forest Products Annual Market Review, 2004-2005 ___________________________________________________________ iii C O N T E N T S Page Preface..............................................................................................................................................ix Acknowledgements ................................................................................................................................ x Contributors to the publication................................................................................................................... xii Statistical correspondents ........................................................................................................................ xiv Data sources....................................................................................................................................... xv Explanatory notes................................................................................................................................. xv Symbols and abbreviations used................................................................................................................. xvi Chapter 1 UNECE region forest products markets respond positively to globalization: Overview of forest products markets and policies, 2004-2005........................................................................1 1.1 Forest products market and policy developments, 2004-2005 ...............................................................2 1.2 Market sector developments..................................................................................................................10 1.3 References...............................................................................................................................................12 Chapter 2 Policy issues influencing forest products markets in 2004 and 2005 ............................................................13 Secretariat introduction.....................................................................................................................................14 2.1 Chapter overview...................................................................................................................................14 2.2 Forest law enforcement, governance and trade.....................................................................................14 2.3 Initiatives to encourage the use of sustainably produced timber products...........................................17 2.4 Forest sector development policies........................................................................................................18 2.5 Climate change policy ...........................................................................................................................20 2.6 Wood energy policies.............................................................................................................................22 2.7 Trade policy and tariff and non-tariff barriers, including phytosanitary measures ..............................24 2.8 The emergence of China as a major player in the wood products manufacturing arena ....................25 2.9 References...............................................................................................................................................26 Chapter 3 Continued global economic recovery boosts housing construction: Economic developments influencing forest products markets in 2004 and 2005...........................................29 Secretariat introduction.....................................................................................................................................30 3.1 Economic developments........................................................................................................................30 3.2 Construction sector developments........................................................................................................36 3.3 References...............................................................................................................................................38 Chapter 4 Roundwood harvests reach record levels due to higher pulp and sawnwood demand: Wood raw material markets, 2004-2005 .....................................................................................................39 Secretariat introduction.....................................................................................................................................40 4.1 Introduction ...........................................................................................................................................40 4.2 Europe subregion....................................................................................................................................41 4.3 CIS subregion.........................................................................................................................................42 4.4 North America subregion ......................................................................................................................43 4.5 Raw material prices ................................................................................................................................44 4.6 References...............................................................................................................................................45 Chapter 5 Exceeding Timber Committee forecasts, sawn softwood markets rise to record levels: Sawn softwood markets, 2004-2005.............................................................................................................47 Secretariat introduction.....................................................................................................................................48 5.1 Introduction ...........................................................................................................................................48 5.2 Europe subregion....................................................................................................................................49 5.3 CIS subregion.........................................................................................................................................52 5.4 North America subregion ......................................................................................................................52 5.5 References...............................................................................................................................................54 iv ___________________________________________________________ UNECE/FAO Forest Products Annual Market Review, 2004-2005 Chapter 6 UNECE region hardwood markets strongly affected by global trade: Sawn hardwood markets, 2004-2005.................................................................................................................