January 26, 2023

DHA eNews - U.S. Imports Of Hardwood Plywood Grow By 25%

This Week's Insights

In our last email, we noted that 2022 was an eventful year that dramatically affected our industry, from the war in Ukraine to an important preliminary finding from the U.S. Department of Commerce that imports of hardwood plywood from Vietnam were circumventing the duties on Chinese hardwood plywood. 2022 was also an eventful year for the Decorative Hardwoods Association; we sent the highlights of what we achieved together to DHA members last week. If you are a DHA member and did not receive your copy, please contact me so I can send you one. If you are not a DHA member, contact me to see what you're missing and how joining DHA can help you and your business.

The Commerce Department's preliminary finding of circumvention on imports of hardwood plywood from Vietnam appears to be slowing those imports substantially. In the first half of 2022, imports from Vietnam were running at a rate of 94 million square feet per month, but in October and November, those imports declined to less than one-third of that rate. Unfortunately, the Commerce Department is considering letting many importers off the hook after those importers launched a misleading lobbying campaign targeting the circumvention duties—despite the importers' failure to participate truthfully in Commerce’s circumvention review.

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

Keith A. Christman, President
Decorative Hardwoods Association

U.S. Imports Of Hardwood Plywood Grow By 25%

Through November of last year, imports of hardwood plywood grew by nearly 25% in value to more than $2 billion and almost 8% in volume to more than 3.1 billion square feet. These dramatic increases follow a 35% growth in volume in 2021. Indonesia and Vietnam drove growth in 2022, as the value of imports from Indonesia increased by a whopping 55% and imports from Vietnam grew by 33%.

U.S. Imports Of Engineered Wood Flooring Are Up By 16%

U.S. imports of multilayered wood flooring grew to $1.2 billion in value, up by more than 16%, and reached nearly 715 million square feet, up by 13% in volume, through November of last year. Imports from Vietnam alone grew by nearly 33%. These significant increases follow growth of more than 31% in volume in 2021.

How To Test Wood Flooring

Josh Hosen and Chris Palumbo of DHA affiliate Capital Testing will join DHA partner the Floor Covering Institute to discuss how to evaluate the core and construction of flooring products. The webinar, held at 12 pm ET on Wednesday, February 15, is open to all at no charge.

The Impact Of EPA's Expanded Definition Of WOTUS

The EPA's expanded definition of "waters of the U.S.," or WOTUS, will increase the scope of required permits in forest management, expanding regulators' reach over private property, experts say. Administrative burdens—and legal uncertainties of the expanded definition—may increase costs and drive down the value of forestland. See the Hardwood Federation's report for more details.

Montana May Change How Forests Are Taxed

Legislators in the Montana Senate have proposed revising the tax laws on forestland. The goal of the bill, which passed through the Montana Senate Taxation Committee with a unanimous vote, is to provide a better incentive to timberland owners to continue growing trees.

USFWS Delays Long-Eared Bat Regulations

U.S. Fish and Wildlife Service has postponed the effective date for the reclassification of the northern long-eared bat from threatened to endangered status under the Endangered Species Act to March 31. This will allow USFWS to prepare conservation tools and guidance and give landowners more time to prepare for the change.

Cabinet Sales Stay Strong In 2022

The latest available data shows that cabinet sales continued to grow in November, up by nearly 15%, with the largest increase in custom cabinets at nearly 25%. While sales in November were down by 3.5% vs. October, total sales from January through November were up by more than 17.2% vs. the previous year.

Importers Bring Banned Wood Into EU By Mislabeling Country Of Origin

A new report has found that importers are sneaking banned Russian and Belarusian wood into the EU by labeling it as a product of Central Asia. Shortly after imposing sanctions on wood imports from Russia and Belarus, Europe saw a spike in imports of wood supposedly from Kazakhstan and Kyrgyzstan.

China Announces Tariff Adjustment

The Chinese State Council announced a minor change in tariffs: a tweak downward from 7.4% to 7.3%, with the intent of spurring demand and growth. The wood products affected include fiberboard, laminated wood, particleboard, plywood, and wooden doors and windows.

Computer Virus Causes Layoffs

As a result of a computer virus, more than 500 workers were temporarily laid off at Wood-Mode, a custom wood cabinet manufacturer in Kreamer, PA. The virus, discovered on January 9, likely originated overseas. 

Save The Date: DHA's 2023 Annual Meeting Is May 24–26

The Decorative Hardwoods Association 2023 annual meeting and spring conference will be held on Wednesday, May 24 – Friday, May 26, at the gorgeous Wyndham Grand Clearwater Beach in Florida. We invite all members and their staff, including all new members, to join us to hear from industry leaders and other experts and to contribute to the discussion.

Wild Weather Is Killing California's Trees

An epic drought in California followed by rainstorms resulted in thousands of broken trees. Thousands of trees fell throughout the state due to strong winds, rain, and flooding.

How Demand In Asia Affects African Forests

As the global demand for wood climbs, it's likely that timber exports from China and other Asian countries will source more wood from Central Africa's 200 million hectares of forest. Over the past ten years, much of Central Africa's wood exports have been shipped to markets in Asia.

The Plan For Nova Scotia's Crown Land

After five years of research and debate, there is a plan in place for Nova Scotia's Crown land. 10% of the land will be used to grow trees as a crop on 30– to 50–year rotations to produce wood for 10 large commercial sawmills.

UK Plants More Trees

UK foresters have already planted 3 million seedlings in the Kielder Forest and plan to plant at least 500,000 more in England. Foresters are planting about 50 different species, one-third of which are broadleaf varieties like oak, birch, and ash.

Innovation: Using Drones As Research Assistants

Researchers in Switzerland have created a new type of drone that can land on tree branches. The drones are equipped with adhesive strips that can take samples from trees, from which researchers can extract DNA.

What’s Ahead For The U.S. Housing Market?
Watch These 10 Housing Markets In 2023
The U.S. May Dodge A Recession, Yet
Canadian Housing Starts Still High
Lower Mortgage Rates & Home Prices Boost Homebuyer Sentiment
Remodeling Market Sentiment Weakens But Remains Positive
Construction Employment Hits A Record High
Builder Confidence Ticks Up 4 Points After A Year Of Declines
Sales Of Wood Flooring Weaken
U.S. Hardwood Flooring Imports Drop 27%
Furniture Sales "Frosty" In Cool Retail Market
Forest Quiz: Test Your Knowledge

What is the most common hardwood tree in China?

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