May 18, 2023

DHA eNews - Duties On China's Hardwood Plywood Will Continue For 5 More Years

This Week's Insights

Last week, in a big win for U.S. workers and the many DHA members in the Coalition for Fair Trade in Hardwood Plywood, the U.S. International Trade Commission decided that the existing duties on Chinese hardwood plywood will remain in place for the next five years. This is a critical development for the industry that has been fighting unfair imports from China for years. It also underlies circumvention cases against Vietnam, where a final ruling is expected later this month.

We also congratulate our downstream customers in the cabinet industry who had an important win that will increase duties on Chinese cabinets that are being dumped at artificially low prices into the U.S. market. The Kitchen Cabinet Manufacturers Association recently doubled down on its commitment to fight unfair competition.

In a proposal the EPA has estimated will cost $47 million per year, the agency proposed new restrictions on emissions from plywood, veneer, and composite wood products manufacturing. This includes new rules on wood-fired dryers that may cause a switch to gas-fired boilers, increasing greenhouse gas emissions.

If you have questions or comments, contact me. I look forward to hearing from you.

Keith A. Christman, President
Decorative Hardwoods Association

Photo © U.S. Customs & Border Protection/Jerry Glaser

Duties On China's Hardwood Plywood Will Continue For 5 More Years

Last week, the U.S. International Trade Commission determined that revoking current antidumping and countervailing duties on hardwood plywood from China would have negative consequences. Specifically, this could lead to material injury to U.S. industry. The existing duties, many of which exceed 200%, will remain in place.

EPA Proposes Tough New Emission Rules

Earlier this month, EPA proposed strict new rules for plywood, veneer, and composite wood products manufacturers, including new limits for emissions from wood-fired dryers. EPA estimates that the change will cost $47 million per year.

KCMA Will Fight Chinese Dumping

The Kitchen Cabinet Manufacturers Association will continue to fight against the alleged dumping of cabinets by Chinese companies into the U.S. market. KCMA's board said that the fight "is not with cabinets and components coming from Vietnam and other countries through legal channels. We're fighting stuff that's going from China to Vietnam to here."

U.S. Raises Tariffs On Chinese Imports

In what KCMA calls a "huge improvement from the last reviews," the U.S. Department of Commerce will raise tariffs on imports from Chinese wood cabinet, vanity, and component manufacturers. One company's antidumping rate was increased from 0% to 43%; another's from 4.37% to 7.71%. Click below to see a chart with more detail.

Canada's Plywood Manufacturers Push For Duties On Cheap Chinese Imports

Canada's hardwood plywood and veneer industry is shrinking. This is not due to a lack of demand for kitchen cabinets, decorative wood panels, and furniture. Instead, Canadian manufacturers are losing market share to plywood products imported from China at artificially low prices that Canadian manufacturers cannot match. The Canadian government still has not imposed antidumping duties on Chinese exporters as requested by the Canadian Hardwood Plywood and Veneer Association.

Don't Expect An All-Out Trade War Between China & Canada

Earlier this month, China expelled Canada's consul in retaliation for Canada's expulsion of a Chinese consular officer accused of participating in a plot to intimidate a member of Canada's parliament. But, don't expect an all-out trade war. China has too much to lose; they need Western countries like Canada to buy what they are making.

Russia's Plywood Production Falls

In the first quarter, Russia's plywood production fell by 29% to 738,000 cubic meters. Production of fiberboard fell by 23% and chipboard fell by 9%.

Russian Plywood Mills May Stop Production

Some Russian plywood manufacturers may be forced to stop production or significantly raise prices due to a shortage of phenolic formaldehyde resin, a key component in the production of plywood.

Congress Pushes Forest Service For Action On Wildfires

The U.S. Forest Service says thinning forests to protect communities is its top priority, but members of Congress from the West are asking the Forest Service to do more. Federal firefighters are asking Congress for more support, too, anticipating a difficult fire season in the West.

U.S. Will Invest $2.8 Billion In Public Lands

The Departments of Agriculture and Interior proposed spending $2.8 billion next year, authorized by the Great American Outdoors Act, to improve infrastructure, recreation facilities, and land and water conservation. The act provides permanent, full funding of the Land & Water Conservation Fund at $900 million each year to improve recreation and protect watersheds and wildlife.

New Opportunities For Wood Flooring In Commercial Environments

The past decade has marked a steady return to authentic materials in commercial interiors, including wood, stone, and wool carpet. "One of the biggest category beneficiaries of this momentum in authentic traditional flooring materials in commercial spaces is the hardwood flooring category."

An Award-Winning Bicycle Frame Is Made Of Plywood

Masateru Yasuda of Japan designed a bicycle that relies on the flexible, sturdy properties of bent plywood. Held in place with metal fixtures, the bent plywood frame flexes in response to pressure, helping absorb the stress caused by uneven surfaces or poor terrain.

45-Foot Walnut Slide Is Inside A Doctor's Office

See the three-foot-wide, 45-foot-long walnut slide that will be installed inside a pediatrician's office. While the slide may attract more patients, the designer says that it may qualify as therapy all by itself.

U.S. Pending Home Sales Fall By 5.2%
U.S. Job Market Remains Strong Due To Labor Hoarding
Canada's Job Market Resilient Despite Signs Of Cooling Economy
Public Builders Optimistic Despite Short-Term Uncertainty
Tight Supply Drives Up Demand For Newly Built Homes
Construction Unemployment Rate Hits Record Low
Mortgage Applications Up As Rates Decline
Inflation Drops Below 5% For First Time In 2 Years
Expect Furniture Sales To Stay Solid
Window & Door Manufacturers Are Cautiously Optimistic
Wood History: Test Your Knowledge

Just how fast was the de Havilland Mosquito combat airplane, known as the "Wooden Wonder," and how many of these planes were built?

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