Wood pulp
Plywood
The figures shown in the text are taken from official sources where available, from World Wood Pulp Data (published by the Canadian Pulp and Paper Association and the United States Pulp Producers Association) and from trade journals. Official statistics generally covered no more than ten months of 1950 and the data for the remaining months were estimated. Unless otherwise indicated, metric units are used throughout. A previous report on Wood Pulp may be found in UNASYLVA. Vol. IV, No. 2.
The period following the beginning of hostilities in Korea saw a distinct change in the wood pulp and pulp products picture. Consumption of pulp products increased in the United States of America, but production reached such levels that many analysts, both in government and industry, agreed that consumption was lagging behind and that stocks must be increasing. In Europe the consumption of pulp products increased which may be partly regarded as: further evidence of economic recovery. Even so it is not likely that present consumption levels, when calculated on a per caput basis, have yet attained prewar levels. The demand for wood pulp increased in other parts of the world, as a result of the greater use of pulp products and the attempt to secure supplies during a period of rising prices.
During 1950 most countries restricted imports from dollar areas and, as a consequence, reduced their purchases from North America. Supplies from Northern Europe, however, will not be able to meet the current demand, and some importing countries may again attempt to turn to North America for pulp and pulp products. In view of the present tight supply situation in pulp and pulp products moving in international trade, it has been deemed advisable in a number of quarters to consider the possibility of some sort of international allocation. The International Materials Conference has been considering the matter in Washington.
Among the pulp products in demand, the need for newsprint appears particularly pressing. Publishers are concerned about their paper supplies, pointing to the increased need for an understanding by all peoples of the pressing international problems as additional justification of the importance of their requirements. Increases in costs of newsprint have generally been passed on to the public.
In 1950 both Sweden and Finland increased their exports to the United States by more than 60 percent over 1949 levels and thus re-entered this market on a larger scale. However their prices are higher than North American prices. If price controls are put into effect in the United States, these countries may not find the United States market as attractive as at present. In Sweden there was a rush to export as much pulp as possible before 1 January 1951, the date when the "price equalization charges" were to take effect.
There were many large Increases in pulp prices and the end was not in sight in the middle of 1951. From the point of view of the producer this is not entirely satisfactory as the increase in demand and in prices might be a sign of world-wide inflationary tendencies. Prices in some spot sales have been getting out of hand.
It is of interest to compare estimates of actual production in 1949 with the forecasts made at the Preparatory Conference on World Pulp Problems held in Montreal in April/May 1949:
Table 1. - WORLD PULP PRODUCTION IN 1949 AND 1950
|
|
1949 |
1950 |
||
|
Actual production |
Montreal conference forecast |
Actual production |
Montreal conference forecast |
|
|
(Thousand metric tons) |
||||
|
North America |
17 888 |
18 996 |
20 640 |
20 310 |
|
Europe |
8 086 |
8 900 |
8 420 |
9 600 |
|
Others |
848 |
1 125 |
1 066 |
1 260 |
|
Total |
26 822 |
29 020 |
30 126 |
31 170 |
The forecasts made at the Montreal Conference appear to have been remarkably accurate. However, the report of that Conference clearly states that for future years, forecasts were based on "normal conditions." Conditions have in fact turned out far from "normal."
The Korean incident has resulted in such an increase in economic activity and expenditures as of necessity to create a larger demand for pulp products. There was already strong evidence all over the world that the normal demand for such products was growing, making it feasible to increase manufacturing capacity or to establish factories where none previously existed; Plans for the erection of new factories were far advanced in some quarters and in others the necessary preliminary investigations were in process. The greater wood pulp and pulp products requirements resulting from the present international situation will probably further stimulate production, as no country wishes to see any fall in its standard of living. At the Montreal Conference it was anticipated that between 1949 and 1955, under favorable conditions, world wood pulp requirements could increase by as much as 30 percent and world wood pulp production by 27 percent.
PRODUCTION
The available data indicate that in 1950 there was an increase over 1949 in wood pulp production in most major producing countries. Production in Europe appears to have increased about 10 percent over 1949 levels, in Canada and the United States together about 15 percent, and in Latin America about 6 percent. Production in Japan increased 25 percent, and there was a slight increase in production in Australia. Western Germany made considerable progress in the restoration of its pulp industry.
TABLE 2 - WOOD PULP WORLD PRODUCTION AND TRADE DATA
|
Region |
1950 Estimates |
|||
|
Production |
Imports |
Exports |
||
|
(Thousand metric tons) |
||||
|
North America |
20 800 |
2 200 |
1650 |
|
|
Latin America |
230 |
265 |
- |
|
|
Europe |
8 420 |
2 815 |
3 800 |
|
|
|
Northern |
6 100 |
15 |
3 630 |
|
|
Eastern |
110 |
130 |
1- |
|
|
Western |
750 |
2 300 |
10 |
|
Central |
²1560 |
²470 |
²160 |
|
|
South Africa |
16 |
2 |
- |
|
|
Asia and Pacific |
820 |
265 |
- |
|
|
TOTAL |
30 286 |
5 547 |
5 450 |
|
- None or negligible
1 Does not include estimates for Bulgaria, Hungary, Poland, Rumania, and Yugoslavia.
² Does not include estimates for Czechoslovakia.
The principal countries producing wood pulp for export are Norway, Sweden, Finland, and Canada. In 1950, production appears to have increased by about 50,000 tons in Norway, by about 175,000 to 200,000 tons in Sweden, by roughly 300,000 to 350,000 tons in Finland, and by 450,000 tons in Canada. It should be remembered that in 1949 the demand for wood pulp slackened somewhat; consequently most of the increased production was from existing mills and did not represent an increase in wood pulp production capacity.
The production of greater quantities of wood pulp in the future depends not only upon installed capacity of the factories and the demand for the finished product, but also upon the supply of pulpwood and of coal and labor. The report of the Montreal Conference contains a section on pulpwood supplies which notes that the possibility of increasing supplies of pulpwood in Europe in the immediate future is slight, if care is to be taken to avoid-irreparable damage to the forests or reduction in the production of other wood products. The pressure on wood pulp supplies has been reflected in the increase in price levels and has accentuated talk about the practicability of a greater use of straw and other fibrous materials for papermaking. More attention is being given to the greater utilization of hardwoods in papermaking.
To meet domestic requirements, new wood pulp mills have recently been erected in Mexico and Brazil, and plans are being made for mills in Alaska, Australia, India, and New Zealand, to mention only a few countries. In addition, many plants are increasing their capacity through modernization. New plants using fibers other than wood have been erected in Algeria, Uruguay, and the Philippines.
Cost and the uncertainty as to reliance that can be placed on continued uninterrupted supplies hinders the development and use of agricultural residues which otherwise might seem to hold promise as a raw material for papermaking.
North America
Wood pulp production capacity in North America increased some 780,000 tons between 1949 and 1950. Of this increase, 730,000 tons was for the manufacture of chemical pulp and 54,000 tons for the manufacture of mechanical wood pulp. Between 1949 and 1950 production increased by roughly 2,800,000 tons, of which 2,200,000 was chemical wood pulp and 600,000 mechanical.
Canada. Canadian production of wood pulp in 1950 is estimated to be around 7,420,000 tons, an increase of about 450,000 tons over 1949 levels. The increase in dissolving pulps is estimated to be 61,000 tons, and of kraft pulp 160,000 tons. The increased production of dissolving wood pulps at a time when cotton inters are relatively scarce takes on additional significance. Additional capacity for the production of dissolving wood pulp was scheduled to come into operation during February-March 1951. The outlook for 1951 is that expansion must be curtailed if it interferes with rearmament requirements. Output will be most affected by the supply of labor which may shift to higher paying defense employment. Higher production costs and shortages of needed chemicals may also limit production.
The production of newsprint in 1950 was 4.789,000 tons, or 93,000 tons more than in 1949.
United States of America. The production of wood pulp in the United States is estimated at 13,200,000 tons in 1950 as compared with 11,029,000 in 1949, and 11,678,000 tons in 1948. Despite this record production and the high level of imports, stocks at the end of the year were no higher than those at the beginning. However, it is believed that consumption of the finished pulp products has not kept up with production and the excess has gone into building up stocks. At the October-November 1950 levels, annual production of all paper and paperboard was at the rate of 24,240,000 Production in 1949 totaled 19,230,000 tons. It is believed that controls over production of civilian goods will have their effect in the first part of 1951, and that there will be a period before military orders take up the slack. Consequently there is the feeling that the present record rate of wood pulp production and consumption will not continue long, particularly if price controls are put into effect at the same time. In addition, price controls could affect the level of imports. Shortages in the raw materials required for papermaking were appearing even though they did not have much effect on the total picture in 1950.
Supplies of pulpwood in 1950 were generally considered adequate. In the Pacific Northwest, stocks of pulpwood, which had been increased to a high level in 1949 to take advantage of low prices, were permitted to decline. The price level of logs in 1950 was high and provided an incentive for mills to keep their stocks low. Pulpwood prices increased in the Great Lakes area, too, and mills securing their supplies from Canada in October 1950, were anticipating higher prices, particularly for peeled wood.
Of the market wood pulp available to mills which purchase such supplies, 40 percent was produced in the United States - practically the same percentage as existed prewar. While some new mills supplying market pulp have been erected during this period, others have been shut down, thus offsetting the new capacity made available.
Of the 13,200,000 tons of pulp produced in 1950, 430 000 tons were dissolving sulphite and 6,800,000 tons were bleached and unbleached kraft. Dissolving sulphite production increased by 90,000 tons over 1949 levels, and kraft production by approximately 1,400,000 tons.
Sweden
The production of wood pulp in 1950 is believed to have approached 3,075,000 tons, comprising 360,000 tons of dissolving sulphite pulps, 1,025,000 tons of other sulphite, 990,000 tons of sulphate, and 700,000 tons of mechanical pulp.
At the close of 1950 it began to appear that higher pulpwood prices were in the offing. Fuel was also becoming a problem. Supplies of coal and coke from Great Britain were reduced as Britain has trouble meeting its own requirements. In the latest trade agreement with Poland, Sweden had to increase its commitments of wood pulp to obtain the agreed quantities of fuel. There was also some question as to the continued availability in sufficient quantities of pyrite and pure sulphur, as sulphur was becoming tight in the world markets.
Finland
Production of wood pulp in Finland in 1950 fell just short of 2,000,000 tons, of which 75,000 tons were dissolving sulphite, 480,000 tons unbleached sulphate, and 760,000 tons mechanical.
France
Production of wood pulp in 1950 increased about 6 to 7 percent over 1949 levels. In view of the shortage of pulpwood, it is interesting to note that a mill has recently installed equipment capable of producing wood pulp from waste woods, primarily hardwoods. This mill is to be operated in conjunction with a sawmill.
Other Countries
Production in Western Germany in 1950 is believed to have increased about 20 percent over 1949. In Japan production has again increased and in 1950 was almost 30 percent greater than in 1949. Reports indicate that Manchuria and Korea have resumed production of wood pulp, but it can be assumed that in the latter part of 1950 such operations declined drastically or stopped completely. It is indicated that paper mills in Thailand, Indochina, and Ceylon have increased their paper production since the end of the war.
INTERNATIONAL TRADE
Wood pulp entering into international trade originates primarily in Canada, Sweden, Finland, Norway, and the United States. These countries' exports in 1950 were about 5,475,000 tons, some 680,000 tons greater than in 1949, and almost 1,200,000 tons greater than average annual exports during the period 1946-48. Exports to European destinations in 1950 were 2,790,000 tons, 135,000 tons greater than in 1949 and more than 800,000 tons greater than the annual average for 1946-48. In 1949, exports to North America, principally the United States, were 135,000 tons less than the annual average for 1946-48, but 1950 exports of 2,310,000 tons were 550,000 tons more than those of 1949 and 400,000 tons more than the annual average of 1946-48. Exports to Latin America increased some 40,000 tons over 1949 levels while exports to Australia and New Zealand were about the same as in 1949.
Northern European postwar wood pulp exports have been steadily increasing. During the period 1946-48 they averaged about 2,728,000 tons; in 1949 they increased some 540,000 tons over this annual average and further increased some 325,000 tons in 1950 to approximately 3,600,000 tons.
In 1950 many of the importing countries made a definite attempt to restrict their purchases in dollar areas. Consequently Sweden, Finland, and Norway, were able to reach more markets than otherwise would have been possible considering the world demand; at the same time North American exports to such areas were declining. In 1950 North American wood pulp exports to Europe decreased 130,000 tons from 1949 levels and 55,000 tons from the annual average of 1946-48. North American exports to Latin America decreased more than 20,000 tons from the annual average of 1946-48, and exports to Australia and New Zealand decreased 10,000 tons. In 1950 Northern European exports to Europe increased over 260,000 tons and more than made up for the decline in exports from North America. Exports to Latin America from Northern Europe increased by about 45,000 tons, and exports to the United States by roughly 50,000 tons.
TABLE 3. - DESTINATION OF NORTH AMERICAN AND NORTH EUROPEAN WOOD PULP EXPORTS
In the early part of 1949 it began to appear that the supplies of wood pulp then available would be adequate for current needs. Consumers expected prices to decline, and it can be presumed that they drew upon their stocks to some extent. But toward the end of 1949 the market strengthened, and in the middle of 1950 it was clear that prices would go up. It is believed that both purchasers of wood pulp and consumers of pulp products made efforts to increase their inventories and to assure themselves, in so far as possible, of an uninterrupted source of supplies. This was particularly true in the United States.
Imports of the twelve most important importing countries are shown in Table 4. The figures for 1950 are mostly estimates derived from the available export data from Finland, Norway, Sweden, Canada and the United States. The United States, Denmark, Germany, Netherlands, Argentina and Brazil are importing more wood pulp than during the prewar period, whereas the other six countries are importing less. Wood pulp supplies in these eleven countries (excluding the United States) in 1949 were a third higher than the 1946-48 average, showing the recovery made during this period. Imports by the same group of countries in 1950 were about 5 percent greater than in 1949.
TABLE 4. - WOOD PULP IMPORTS, TWELVE PRINCIPAL IMPORTING COUNTRIES
|
Country |
Average 1936-38 |
Average 1946-48 |
1949 |
Est. 1950 |
|
(Thousand metric tons) |
||||
|
Belgium |
157 |
183 |
158 |
120 |
|
Denmark |
48 |
59 |
62 |
70 |
|
France |
524 |
268 |
325 |
490 |
|
Germany |
166 |
166 |
274 |
1240 |
|
Italy |
247 |
133 |
201 |
190 |
|
Netherlands |
96 |
133 |
127 |
140 |
|
United Kingdom |
1 689 |
982 |
1 341 |
1 450 |
|
United States |
1 930 |
1 906 |
1 600 |
2 200 |
|
Argentina |
39 |
50 |
71 |
70 |
|
Brazil |
88 |
79 |
97 |
130 |
|
Japan |
279 |
14 |
49 |
60 |
|
Australia |
49 |
39 |
51 |
30 |
|
TOTAL |
5 312 |
3 922 |
4 356 |
5 130 |
|
TOTAL (excl. U.S.) |
3 382 |
2 016 |
2 756 |
2 930 |
1 Western Zones of Germany.
PRICES
Wood pulp prices in the United States reached their peak in 1948, and started to decline toward the end of the year. Late in 1949, they began to level off, and during the first part of 1950, prices were steady with a somewhat upward movement for some grades. Later, prices began to rise; the increases in the last three months of 1950 were rather large, but levels were still below the 1948 peak. It seemed that prices would continue to rise in 1951 unless stopped by price controls.
The prices of Northern European pulp on the United States market are usually competitive although somewhat higher than the prices prevailing in North America and somewhat lower than most prices for comparable grades of pulp in other markets.
The price of imported wood pulp on the French market declined during the first part of 1949, but reversed itself in September of that year and continued to rise throughout 1950.
The prices of Swedish wood pulp on the United Kingdom market seemed to follow the pattern described above for prices on the United States market. Prices declined during 1949 tended to become stable toward the middle of the year, and began to rise in 1950.
In Sweden a "price equalization charge" will be imposed on all wood pulp exported after 1 January 1951, the charges to be collected by industrial organizations. Collections are also to be made from concerns not members of such organizations. The charges are to be 150 kr. per ton for papermaking wood pulp, 100 kr. for dissolving sulphite wood pulp, and 40 kr. for mechanical wood pulp. The charges are subject to quarterly revision. Payment of the funds collected is to begin in January 1958 and is to be made to producers both for export and for the domestic market, in proportion to their deliveries. With the imposition of these charges, price controls on pulp products sold on the domestic market wore eliminated.
Observers on the international market have noticed that spot prices in many instances have been considerably higher than regular contract prices, but of course for limited quantities. For the last half of 1950 high prices did not seem to be a strong deterrent to pulp consumers desiring additional supplies.
PRODUCTION
World production of plywood has shown a remarkable increase in the postwar years. As was stated in the report published in UNASYLVA, Vol. III, No. 3, estimated world production had by 1947 reached a total volume of 2,850,000 m.3 as compared with around 2,000,000 m³ prior to the war. Later information indicates that the output of plywood can be estimated at some 3,140,000 m³ in 1948 and at about 3,430,000 m³ in 1949. In other words, the level of production at the beginning of 1950 was more than 70 percent higher than prewar.
This expansion is an expression of the growing need for finished wood products for an ever-widening field of uses. While some of these uses: may be termed new in that they were never previously met with material derived from timber, some of them represent examples of the substitution of plywood for lumber or some other wood product.
The increase in plywood output is due more to recovery or expansion in traditionally producing regions in response to a growing demand, than to new capacity in areas which had no real plywood industry in prewar times. There are, however, certain quite important newcomers among plywood producing countries, e.g., certain territories in Africa, and a few countries in Europe, Latin America, and Asia. Production in a number of those countries is not likely to exceed the present relatively moderate level for some years to come, but other countries, particularly in Africa, are expanding their capacity.
As is shown in Table 1, the United States alone accounted for some 53 percent, or, with the addition of hardwood plywood, about 55 percent, of world production in 1949, as computed on the basis of reports received for the FAO Yearbook of Forest Products Statistics. The aggregate share of the United States and Canada represented about 58 to 62 percent of the world total. About 25 percent of the total was produced in Europe, and some 10 to 11 percent in Asia. South America and Oceania each accounted for slightly more than 2 percent and Africa for a little over 0.5 percent of the world total.
Europe
Output in the major European producing countries has generally shown a tendency to increase. The most notable increase occurred in Western Germany where output doubled between 1948 and 1949. During the first half of 1950, production in Western Germany reached, blackboards included, 167,000 m³, the highest figure for any European country. During 1949 Finland reached its prewar production level. Output of 118,000 m³ during the first half of 1950 was equal to the volume a year earlier. In the autumn of 1950, however, Finnish plywood production was limited by strikes.
France has also been able to increase output considerably: during the first six months of 1950 French production reached 60,500 m³, as compared with 48,000 m³ a year earlier.
In Italy the production of plywood has been hampered by lack of domestic demand. Nevertheless, the industry, comprising nearly 70 factories, is to be expanded. For instance, a plywood plant with equipment delivered from the United States is to be erected in the Calabria region.
Output in the United Kingdom has been maintained on a relatively high level, and there was a slight increase during the first half of 1950.
The capacity of the Swedish plywood industry has been increased by the completion of a new plant which, with an annual production of 20,000 m³ of plywood and 5,000 m³ of blackboards, is claimed to be the largest in the country. Because it is feared that the supplies of domestic veneer logs might prove insufficient, the new factory is equipped to process tropical timbers also.
While output in some Western European countries which are partly dependent on imported logs is not likely to be increased to any marked degree, there are plans for considerable expansion in many Eastern European countries, namely Yugoslavia, Bulgaria, Rumania, Czechoslovakia, and Poland. In addition, the capacity of the plywood industry in Austria has been somewhat increased.
North America
The plywood industry in the United States has consistently been favored by a firm demand and stable prices. Many companies have erected or are about to construct new plants. During 1949 the output of softwood plywood increased by only about 0.6 percent over the previous year's level, but in 1950 there was a very sharp turn upward. The first six months of 1950 witnessed an increase of about 39 percent in the production of softwood plywood as compared with a year earlier.
The record-breaking - housing activity and, during the last months of the year, the growing military purchases, which are believed to have absorbed about 15 percent of the Douglas fir plywood production, helped to maintain the high level of production throughout 1950. Thus, production of softwood plywood in October 1950 was almost 10 percent higher than in September 1950 and some 33 percent above production reported for October 1949. The demand for plywood of all kinds being such that the sales volume was limited only by plant capacity, it was expected that the total 1950 output would be well above the 1949 figure.
Canada's plywood industry is to some extent dependent on trends in the export markets and, particularly, the demand in the United Kingdom. While the British Columbia sawmilling industry has been able to turn to the United States market in times of lack of order from other sources, the plywood industry in the same area has been barred from this outlet by a 40 percent tariff. The sharp drop in export of Canadian plywood in 1949 resulted in a decline in production. However, the situation was changed during the first six months of 1950, and production was some 5.6 percent higher than in the first half-year of 1950.
Latin America
Plywood production in Latin America showed a definite increase in 1949, mainly owing to a rise in output in Brazil and the beginning of plywood manufacture in Surinam.
Since 1947 the plywood industry in Argentina has been largely modernized, and output has increased by some 20 percent. New developments are reported to include the construction of a plywood plant and sawmill equipped with Danish machinery in the neighborhood of Rosario. It is expected that domestic production of plywood, nearly half of which is based on the utilization of cedar (Cedrela fissilis), will soon be able to satisfy all requirements and thus make imports unnecessary.
In some other Latin-American countries the plywood industry is also in a process of expansion. It is reported that there are plans for the construction of a new plant in the region of Rio Rubens, Chile. The only plywood company in Colombia is building a large plant at Barranquilla, which will be equipped with-American machinery, the parent plant at Bogota, this factory will produce hot-pressed material, mostly for door construction, to be sold on the home market. It is reported that machinery for a third factory, to be built in Cali, has been ordered from Western Germany.
The first plywood factory in Venezuela started operations in 1949, Approximately three-fourths of its production is for construction purposes, chiefly doors, and the remainder is to be used in the manufacture of furniture. The capacity of the factory is to be increased in the near future. In order to protect the new industry, import duties on plywood were immediately raised in Venezuela.
A new forest products company opened a veneer and plywood mill in Panama in October 1949. The capacity of the plant is about 9,300 m² of 1/10-inch veneer or about 2,300 m² of ¼-inch plywood a day.
Near East
With the completion of a new factory, the Turkish plywood industry will consist of five plants with an aggregate capacity of 27,000 m³ per annum. As Turkey's home requirements are estimated at 15,000 m³ annually, the country will be a potential exporter of plywood chiefly to the Near East, In Israel the plywood mill at Afikim, which started operations during the second half of 1948, will, after the installation of an additional plant, be turning out at the rate of roughly 12,000 m² a year.
Asia
India's total annual demand for plywood is estimated at approximately 14 million m² (in terms of 3-ply, 4 millimeter), for about 5,5 million tea chests and some 4.6 million m² of plywood (3-ply, 4 millimeter) for other purposes. The plants at present operating in India have a total capacity of about 5 million m². Excellent timbers for commercial plywood, as well as for decorative veneers and plywood, are reported to be available, but the expansion of industry is hampered by foreign competition, lack of technicians, etc.
The salient feature in the field of plywood production in the Far East is the rapid recovery of Japan's plywood industry. In 1949 production rose to almost 350,000 m³, a figure nearly 80 percent higher than that for 1948 and considerably in excess of the prewar level.
Oceania
In Australia a new plywood factory, jointly operated by the Government of New South Wales and private enterprise, was opened in May 1950. Included in the federal government's plans for developing the utilization of timber resources in the Bubolo Valley, New Guinea, is the establishment of a veneer and plywood plant.
Africa
It is reported that the first plywood plant in North Africa will be established in Morocco. The output will originally be relatively modest, 300 m³ per month, but it can be easily increased. One half of the production will be required by the local packing industry, and the rest will be exported to Europe. There are also plans for a second plant in Morocco.
TABLE 1. - PLYWOOD OUTPUT
|
Country |
1948 |
1949 |
||
|
(Thousand cubic meters) |
||||
|
Europe |
740 |
900 |
||
|
|
Austria |
8 |
14 |
|
|
|
Belgium |
12 |
12 |
|
|
|
Czechoslovakia |
71 |
... |
|
|
|
Denmark |
10 |
9 |
|
|
|
Finland |
210 |
231 |
|
|
|
France |
86 |
100 |
|
|
|
Germany: |
|
|
|
|
|
|
Bizone |
106 |
211 |
|
|
|
French Zone |
9 |
... |
|
|
Italy |
80 |
80 |
|
|
|
Netherlands |
32 |
29 |
|
|
|
Poland |
32 |
... |
|
|
|
Sweden |
37 |
40 |
|
|
|
Switzerland |
... |
11 |
|
|
|
United Kingdom |
39 |
41 |
|
|
U.S.S.R. |
... |
.. |
||
|
North America |
9,020 |
1,990 |
||
|
|
Canada |
286 |
1253 |
|
|
|
United States |
²1,729 |
²1,739 |
|
|
Latin America |
360 |
380 |
||
|
|
Brazil |
60 |
70 |
|
|
|
Peru |
* |
* |
|
|
|
Surinam |
- |
5 |
|
|
Africa |
20 |
20 |
||
|
|
Fr. Equat. Africa |
8 |
... |
|
|
|
Northern Rhodesia |
3 |
3 |
|
|
|
Southern Rhodesia |
1 |
* |
|
|
|
Union of S. Africa |
9 |
... |
|
|
Asia |
210 |
880 |
||
|
|
Ceylon |
46 |
45 |
|
|
|
India |
20 |
17 |
|
|
|
Indochina |
10 |
... |
|
|
|
Japan |
194 |
346 |
|
|
|
Korea, South |
1 |
... |
|
|
|
Lebanon |
* |
* |
|
|
|
Malaya |
- |
1 |
|
|
Oceania |
70 |
80 |
||
|
|
Australia |
62 |
62 |
|
|
|
New Zealand |
11 |
11 |
|
1 Includes the province of Newfoundland.
² Softwood plywood only; hardwood plywood production in 1947 is estimated to have been 325,000 m³.
³ Shipments from plywood plants only.
4 Year 1948 49.
* Less than 500 m³;
- none or negligible;
... not available.
The development of the veneer and plywood industry in French territories in Africa, mentioned in our previous report, has made considerable progress. The large factory in Port Gentil, Gabon, was expected to be ready for the manufacture of plywood towards the end of 1950. When completed, the plant will have an annual capacity of some 50,000 m³. In Abidjan, on the Ivory Coast a mill producing 6,000 m³ o plywood was scheduled to start opera ions during 1950. The capacity of this mill can be easily raised to 10,000 m³ per year.
In the Belgian Congo two plywood plants in the province of Leopoldville came into operation in 1949, and a factory with an annual capacity of 3,600 m³ of plywood was expected to open before the end of 1950. The large plywood plant in Elisabethville will start production operations in 1951.
Production of the plywood plant in Nigeria was reported to have reached 10,000 m³ in 1948 and is planned to be increased to 12,000 m³.
TRADE
Exports
Estimated world plywood exports dropped sharply from 426,000 m³ in 1947 to 320,000 m³ in 1948. This development was mainly due to a decline of almost 100,000 m³ in United States exports. Reports for 1949 show that the volume of world exports rose to an estimated total of 340,000 m³ which, while about 2 percent higher than a year before, was still well below the 1947 figure.
Estimated regional exports, representing totals of country figures reported to FAO, and figures reported from the main exporting countries for 1948 and 1949 are shown in Table 2.
TABLE 2. - PLYWOOD EXPORTS
|
Country |
1948 |
1949 |
|
|
(Thousand cubic meters) |
|||
|
Europe |
230 |
260 |
|
|
|
Finland |
182 |
208 |
|
|
Sweden |
18 |
25 |
|
|
France |
14 |
15 |
|
North America |
75 |
43 |
|
|
|
Canada |
62 |
22 |
|
|
United States |
13 |
21 |
|
Latin America |
15 |
33 |
|
|
|
Brazil |
13 |
20 |
|
Asia |
4 |
10 |
|
|
|
Japan |
2 |
9 |
The bulk of the plywood export trade was concentrated in a few countries, with more than 60 percent of the estimated world total for 1949 originating in Finland. About three-fifths of Finland's plywood exports in 1949 were shipped to the United Kingdom. The rest was divided between various European importers and some overseas buyers. In 1949, no Finnish plywood was exported to the U.S.S.R., which received 15,000 m³ in 1948. In 1950, exports of Finnish plywood continued at about the same rate as in 1949. Exports during the first three quarters of 1950 were 153,000 m³, as compared with 155,000 m³ during the corresponding period in 1949. Also the figure for the total year 1950 remained somewhat below the 1949 exports, mainly as a result of prolonged strikes.
Plywood from Sweden and France is exported primarily to the United Kingdom. In 1949 the United Kingdom absorbed roughly three-fifths of Sweden's plywood exports and two-thirds of France's exports. During the first six months of 1950, exports from Sweden declined slightly and those from France considerably in comparison with the corresponding period a year earlier. The drop in France's exports to the United Kingdom was particularly sharp, viz., from 9,100 m³ to 2,000 m³.
Canada's plywood exports to the United Kingdom, which in 1948 were almost 35,000 m³, or more than 40 percent of Canada's total plywood exports, dropped in 1949 to 8,300 m³. During the first six months of 1950 Canadian exports to the United Kingdom were negligible. On the other hand, exports of Canadian plywood to the United States, which had declined from 33,600 m³ in 1948 to 147 500 m³ in 1949, increased considerably during the first half of 1950, as a result of the large construction and industrial activity in the United States, and reached the high figure of 20,400 m³, or about 95 percent of total Canadian plywood exports during that period.
The very remarkable decline in United States exports in 1948 was almost exclusively due to the drop in plywood shipments to the United Kingdom from 92,000 m³ in 1947 to 4,000 m³ in 1948. In 1949 sales to the United Kingdom continued to diminish and were nit during the first half of 1950. Exports to all European destinations declined sharply in 1949, and the bulk of United States exports was shipped to the Philippines (10,000 m³), India (4,000 m³), the Union of South Africa (2,000 m³), and some other overseas buyers.
Brazil has been exporting its plywood chiefly to Europe and Argentina. Exports to the United Kingdom declined from 15,000 m³ in 1947 to 3,000 m³ in 1948 and less than 500 m³ in 1949. Considerable quantities, namely 6,000 m³ in 1948 and 5,000 m³ in 1949, of Brazilian plywood have been shipped to Belgium. Exports to Argentina declined from 14,000 m³ in 1947 to less than 500 m³ in 1948, but went up to 5,000 m³ the following year. In 1949 Brazilian plywood was shipped to Israel and Australia in larger quantities. As exportable stocks were increasing in Brazil, the control authorities, in the spring of 1950, gave permission for exporters and importers to arrange barter transactions including exports of plywood.
Chile has recently become an active exporter of plywood. Its exports rose from 1,000 m³ in 1948 to 7,000 m³ in 1949. During the latter year, about one-third of the total was reportedly shipped to the United Kingdom. In 1950 important quantities of plywood were reportedly held up in the factories as a result of unfavorable exchange rates.
Surinam has entered the plywood export trade, and exported a total of 5,000 m³ in 1949. Being tied mainly to the Netherlands market, the Surinam plywood exporters have been adversely affected by devaluation of the Dutch guilder. It is reported that trial exports to the United States have not been very encouraging.
An interesting feature in plywood trade is the resumption of activity by the U.S.S.R. and Japan. Before World War II plywood exports from the U.S.S.R. were about 175,000 m³ per year. No figures on postwar exports are available. In 1947 the Netherlands, Belgium, and Denmark each imported 6,000 m³ of plywood from the U.S.S.R., but in 1948 only Belgium reported any important purchases (close to 5,000 m³). In 1949 the Netherlands received 6,500 m³ and the United Kingdom 11,000 m³ of plywood from the U.S.S.R. During the first six months of 1950, imports of U.S.S.R. plywood into the United Kingdom were 20,900 m³.
Plywood exports from Japan, which in prewar times averaged some 50,000 m³ annually, increased from 2,000 m³ in 1948 to 9,000 m³ in 1949. During the latter year, Australia with 7,000 m³ was the principal buyer.
Exports from African sources have not yet reached very large proportions, as production has only started in some parts of that continent. It is expected, however, that, under favorable conditions, exports from the Belgian Congo could become important in 1951, and the plywood company in French Gabon is scheduled to start export operations this year.
Imports
The main features of the development in plywood import trade in 1948 and 1949 are illustrated by the figures in Table 3.
TABLE 3. - PLYWOOD IMPORTS
|
Country |
1948 |
1949 |
|
|
(Thousand cubic meters) |
|||
|
Europe |
280 |
310 |
|
|
|
Belgium |
36 |
28 |
|
|
Denmark |
4 |
8 |
|
|
Germany-Bizone |
1 |
10 |
|
|
Greece |
5 |
9 |
|
|
Netherlands |
31 |
21 |
|
|
United Kingdom |
175 |
210 |
|
North America |
40 |
20 |
|
|
|
United States |
38 |
17 |
|
Africa |
14 |
22 |
|
|
|
Egypt |
8 |
14 |
|
Asia |
10 |
20 |
|
|
|
Hong Kong |
* |
11 |
|
|
Israel |
... |
6 |
|
|
Philippines |
6 |
... |
|
Oceania |
... |
10 |
|
|
|
Australia |
* |
9 |
The United Kingdom alone has been accounting for about one-half to almost two-thirds of all plywood import trade.
During 1947, 1948, and 1949, domestic production corresponded to some 17 to 19 percent of the apparent consumption of plywood in the United Kingdom. In the same years imports of plywood to the United Kingdom varied from well above 70 percent of prewar levels in 1947 to about 50 percent in 1948 and over 60 percent in 1949. During the first ten months of 1950 the United Kingdom plywood imports corresponded to 59 percent of 1938 imports.
One half of the United Kingdom imports originated in Finland in 1948, and a little more than one half in 1949. At the same time imports from Canada declined from 48,000 m³ to 18,000 m³ and those from the United States from 9,000 m³ to nil. But imports from France and Sweden increased in 1949 as compared with a year earlier, and purchases from African sources and from the U.S.S.R. reached considerable proportions.
During the first six months of 1960, the United Kingdom's plywood imports were about the same as during the corresponding period in 1949. No imports from Canada and relatively high imports from the U.S.S.R. were the most important changes in this period. The partial plywood import decontrol introduced in the United Kingdom at the beginning of June 1960 did not affect purchases from most of the country's major plywood suppliers.
Belgian and the Netherlands plywood imports have been supplied to a large extent by Finland. Lately, the U.S.S.R. has been shipping some important quantities to those countries, and Belgium has also been importing considerable amounts from South America. During the first six months of 1950 Belgian and Netherlands purchases, particularly those from Finland, showed an increase as compared with a year earlier.
The United States imports of plywood originate chiefly in Canada. During the first half of 1950 imports from that source were 13,800 m³ as compared with 4,300 m³ during the corresponding period in 1949.
Denmark's imports declined slightly during the first six months of 1950, while those of Western Germany increased somewhat.
Prices
Plywood has been described as the most versatile building material. For certain uses plywood is so superior to competitive materials that it can bear relatively wide fluctuations in price. For instance, the use of large sheets of plywood as subflooring material in the United States involves such savings in labor that the demand for this purpose is not greatly affected by changes in prices. In most uses, however, the demand for plywood is dependent on the relationship between plywood prices and prices of competing materials, such as lumber and various wallboards, etc.
In the United States, Douglas fir plywood prices in 1948 were almost 200 percent higher than in 1939. They declined about 35 percent by August 1949, but demand then strengthened and prices rose gradually. A partial shortage of suitable peeler logs was also reported to have had some effect on the price trend. By November 1950, first quality plywood logs reached prices between $110 and $120 per thousand board feet, a level never seen reached before.
On the international market there was a more fluctuating tendency. Finnish export prices for birch plywood averaged 24,500 Finnmarks per m³ during the first half of 1949, climbed to an average of 28,300 Finnmarks in December 1949, but dropped almost 7 percent in January 1950.
The average c.i.f. import values of plywood (including laminboard, blackboard, and batten board) received by the United Kingdom during the first ten months of 1950 showed a considerable decline as compared with the average for January-October 1949. Average values for imports from Finland had declined from £47.0.4. to £40.9.0. per m³, and those for all imports of birch plywood from £46.11.6 to £39.8.5. per m³.
Negotiations regarding 1951 prices between the British Timber Control and Finnish and Swedish plywood exporters resulted in somewhat increased prices.
