May 01, 2024

DHA Pushes For Delay Of EU Deforestation Regulation

This Week's Insights

DHA recently joined allies in pushing for a 24-month delay of the new EU Deforestation Regulation. EUDR is widely seen as unworkable for the European forest products industry as well as for small U.S. forest owners. U.S. forests are arguably the most sustainably managed in the world. EU analysis supports that. However, the inflexible EUDR will create an extreme challenge for the U.S. forest products industry if not delayed. Representatives of the American Hardwood Export Council will join us at our annual meeting to discuss what they are doing to help U.S. exporters comply with the EUDR and to convince the European Commission to delay implementation.

In a sign of troubling times to come, imports of hardwood plywood from Vietnam and Indonesia are up dramatically from lower levels in 2023. Imports from Vietnam grew exponentially—by nearly 292% in volume—as imports from Indonesia grew by 52% in volume year-to-date.

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


Keith A. Christman, President
Decorative Hardwoods Association

DHA Pushes For Delay Of EU Deforestation Regulation

DHA joined several U.S. forest products associations in pushing for a 24-month delay of the EU Deforestation Regulation, which is set to take effect on December 31. DHA's letter argues that Europe is not ready to implement the regulation and that the EU Observatory on deforestation and forest degradation correctly shows that deforestation in the U.S. is negligible. A representative from AHEC will provide an update on the EUDR at DHA's upcoming annual meeting.
 

PHOTO © U.S. CUSTOMS & BORDER PROTECTION

Imports Of Hardwood Plywood Surge

After declines in 2023, U.S. imports of hardwood plywood are again climbing fast. The value of imports has shot up by nearly 37% year-to-date in February and by 94% in volume. Imports from Vietnam have skyrocketed, growing by nearly 292% in volume. Imports from Indonesia grew by 52% in volume.

Imports Of Engineered Wood Flooring Are Flat

Through February, U.S. imports of engineered wood flooring edged up by 0.3% in value and 1.1% in volume. Imports from Vietnam and Cambodia grew by 12% and 14% in value, respectively.

White Oak Act Referred To Ag Committee

The bipartisan White Oak Resilience Act has been referred to the House Committee on Agriculture. The bill would help the USFS "regenerate white oak where appropriate" and empower the Civilian Conservation Corps to "plant white oak and associated hardwoods" to increase white oak and other hardwood species and reestablish native hardwood forests.

Lawmakers Say Mismanagement Is Causing A Crisis In Federal Forests

When discussing legislation to improve the responsible management of federal forests, members of the House Natural Resources Committee On Federal Lands stated that "due to repeated mismanagement and years of neglect, our federal forests are in crisis."

Kitchen & Bath Market Will Rebound Later This Year

Experts expect a rebound in the building and construction field, even if its start date has been pushed back. The National Kitchen and Bath Association predicts that residential kitchen and bath spending will increase in Q3 and Q4. NKBA's forecast for total spending in 2024 is $173 billion, a decline of 3%.

Key Bridge Collapse Disrupts Supply Chain

The collapse of Baltimore's Key Bridge, after being struck by a massive container ship, continues to cause disruption in the supply chain for plywood and wood products. Baltimore is the most important U.S. port for plywood imports.

Western Timber Industry Is In Crisis

The U.S. West has already lost more than a half-dozen wood processing plants this year. An industry expert attributes this to a failure of the federal government to align the management of public lands with the health of forests and the wood products sector.

More Mills Close In Montana

More than 30 mills have closed since 1990 in western Montana alone. This spring, two more mills are closing: Pyramid Mountain Lumber in Seeley Lake and Roseburg Forest Products in Missoula.

FSC Launches Investigation Into Birch Wood Panels

The Forest Stewardship Council and Assurance Services International have launched an investigation into birch wood panels. The organizations are looking into possible false claims related to birch from China and some Eastern European countries.

British Columbia Has Planted 10 Billion Trees

B.C. is celebrating the 10-billionth tree planted since reforestation programs began in 1930. Two billion trees have been planted in the past seven years, with 305 million seedlings planted in 2023.

7 Forest Companies Sue Utility

Seven forest companies have filed a $225 million lawsuit against Pacific Gas & Electric, claiming that the utility caused California's massive Dixie Fire. The fire burned for more than 103 days, destroying nearly one million acres of the Sierra Nevada Forest.

Stolen Walnut Trees Tracked By DNA

DNA from an illegally harvested log was used to track down and indict a person for the illegal harvest of black walnut trees in Missouri's Mark Twain National Forest. This was the first time tree DNA has been used in a federal poaching case in the eastern U.S.

U.S. Housing Starts Decrease By 14.7%
U.S. Existing Home Sales Are Down By 4.3%
U.S. New Home Sales Are Still Stronger Than Last Year
U.S. Pending Home Sales Climb By 3.4%
Canadian Housing Starts Fall By 7%
Canadian Consumer Price Index Up By 2.9%
U.S. Economic Growth Slows In Q1
Cabinet Sales Decline
Remodeling Market Sentiment Is Positive
Builder Sentiment Remains Unchanged
Wood Trivia: Test Your Knowledge

Which state has the most trees and how much of its land is covered by forest?


Answer: Alaska, with nearly 32 billion trees and more than 35% coverage.

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