KUCHING: The United Kingdom (UK) has recorded an all-time low imports of tropical wood and wood furniture in 2023 as the country fell into recession.
Last year, UK imported 395,000 tonnes of tropical wood and wood furniture products worth a total US$940 million, and this was 13 per cent and 33 per cent lower respectively as compared to that of 2022.
“In tonnage terms, this was the lowest on record, 8% less than the previous low of 430,000 tonnes in 2015. This is around half the level of tropical wood imports into the UK typical two decades ago before the 2007-2008 recession,” according to the International Tropical Timber Organisation (ITTO) Tropical Timber Market Report (March 16-31, 2024.)
Malaysia was among the top three suppliers of tropical wood and wood furniture to the UK in 2023.
In fourth quarter of 2023 (4Q2023), UK imports of tropical wood and wood furniture were 87,834 tonnes, lower even than the 89,111 tonnes imported in 2Q2022 when the country was at a standstill during the first COVID lockdown. The 4Q2023 figures were 16 per cent down on the previous quarter, and two per cent less than the same period in 2022.
“Underlying the historical low levels of imports is the weakness of the UK economy. According to the Office of National Statistics, the UK economy was in recession in the second half of 2023, shrinking by 0.1% in the third quarter and 0.3% in the fourth quarter.
“Due to stronger growth in the first two quarters of 2023, GDP (Gross Domestic Product) in the UK is estimated to have increased by just 0.1% over the full year. The Bank of England predicts the UK economy will grow by just 0.25% in 2024,” said the ITTO report.
The UK Construction Products Association’s Winter Forecast predicts growth in the UK building sector in 2024, but by only 0.6 per cent after a contraction of 4.7 per cent in 2023.
Both private housing and private housing repair, maintenance and improvement are forecast to be the worst affected by the prevailing economic conditions of flatlining growth, stubborn inflation and interest rates remaining relatively high throughout 2024, according to the association.
Of all wood products imported into the UK from the tropics, furniture declined the most in 2023. Britain imported US$420 million worth of tropical wood furniture products in 2023, which was down 43 per cent from 2022. In quantity terms, wood furniture imports were 115,700 tonnes, down 24 per cent from 2022.
“Tropical wood furniture imports in 2023 decreased from all leading supply countries to the UK, including Vietnam (-40% to US$220 million), Malaysia (-32% to US$88 million), India (41% to US$47 million), Indonesia (-40% to US$42 million), Thailand (-48% to US$12 million) and Singapore (-88% to US$6.6 million).”
On tropical joinery products, UK total imports in 2023 fell 27 per cent to US$196 million while import volume shrank 14 per cent to 69,800 tonnes as compared to 2022. Import value from Indonesia (mainly doors) declined by 30 per cent to US$96 million from a year ago.
Imports from Malaysia (mainly laminated products for kitchen and window applications) fell 28 per cent to US$27 million in 2023. UK import value of Chinese tropical joinery products, nearly all doors, was US$22 million, 30 per cent less than 2022 while imports from Vietnam dropped seven per cent to US$8 million.
On tropical hardwood plywood, the UK imported 203,600 cubic metres (cu m) (-1% than 2022) but import value plunged by 29 per cent to US$188 million.
“A large decline in direct imports of higher-value tropical hardwood plywood from tropical countries was offset by a rise in imports of lower-value plywood with an outer layer of tropical hardwood from China. The UK imported 84,400 cu m of plywood with an outer layer of tropical hardwood from China in 2023, 74% more than the previous year. This followed a sharp fall in UK imports of Chinese products faced with tropical hardwood in 2022 in favour of products faced with temperate hardwood.
“The rebound in UK imports of tropical wood plywood from China in 2023 may partly reflect UK buyers concern to avoid importing Chinese plywood containing Russian birch in contravention of UK sanctions on Russian wood products imposed following the invasion of Ukraine (by Russia) in February 2023,” said ITTO report.
Last year, UK direct imports of tropical hardwood plywood from tropical countries slipped by 22 per cent to 111,600 cu m. Besides the 16 per cent decline in imports from Malaysia, shipments from Indonesia fell nine per cent to 53,600 cu m, imports from Thailand contracted 45 per cent to 6,100 cu m and down four per cent to 4,900 cu m from Brazil.
Meanwhile, the combined effects of supply shortages and rising energy and other material costs on the European continent continue to impact on UK imports of tropical hardwood plywood from EU countries which were just 7,600 cu m in 2023, down by 35 per cent from 2022.
On tropical sawnwood, the official data shown that UK imports of 97,500 cu m worth US$112 million in 2023 was 11 per cent and 10 per cent less than 2022 respectively.
Although UK imports of tropical sawnwood held up reasonably well compared to other tropical products in 2023, a larger share was sourced indirectly, in this case from EU, rather than direct from the tropics.
“Indirect UK imports of tropical sawnwood via the EU were up last year despite the economic slowdown and Brexit disruption, increasing 5% to 26,200 cu m. To some extent, UK’s continuing dependence on indirect imports of tropical sawnwood from the EU is due to a shortage of kiln drying space in African supply countries, combined with lack of any hardwood kiln drying capacity in the UK.
“A large scale (36% in 2023) of sawnwood sourced directly from the tropics by UK imports now comes from Cameroon. UK imports of tropical sawnwood from Cameroon were 35,500 cu m in 2023, 8% less than the relatively high level in 2022.
“UK tropical sawnwood imports from Malaysia, which revived to some extent in 2022 after many years of declines, fell by 38% in 2023 to just 10,400 cu m,” said the report. Year-on-year, UK increased imports of tropical sawnwood from Brazil by three per cent to 6,200 cu m in 2023 but shipments from all other leading tropical supplying countries were down, including from Congo (-23% to 5,600 cu m), Cote d’Ivoire (-30% to 2,900 cu m) and Guyana (-28% to 2,350 cu m).
On tropical hardwood mouldings/deckings, Malaysia was the second largest supplier after Indonesia with shipments of 2,550 tonnes to UK in 2023 (-12% from 2022) as compared to 3,200 tonnes exported by Indonesia (-31%) to Britain. Year-on-year, Brazil’s exports of the product to UK plunged by 74 per cent to 440 tonnes.
On the other hand, UK imports of the product from the Netherlands surged by three folds to 2,300 tonnes and from Vietnam rose by 147 per cent to 790 tonnes.
