A Growing Market For American Hardwood: Turkey

 

 

Total exports of U.S. hardwood lumber to the Middle East and North Africa (MENA) region reached a value of USD 56.3 million and a volume of 71,761 cubic meters during the first three quarters of 2014, according to the American Hardwood Export Council (AHEC), the leading international trade association for the American hardwood industry. The statistics, which have been compiled from the latest data released from the United States Department of Agriculture (USDA), reveal an increase in value of 19.5 percent over the January to September period of 2013 and an increase in volume of 6.4 percent. In addition, direct exports of U.S. hardwood veneers to the MENA reached a total value of USD 22.5 million during the January to September period of this year, rising by 20 percent from the same period in 2013. According to the data released, the most significant increases in shipments of U.S. hardwood lumber were seen in Qatar (up by 81 percent to 2,900 cubic meters), Lebanon (up by 41 percent to 3,858 cubic meters), the United Arab Emirates (up by 26 percent to 9,820 cubic meters) and Jordan (up by 20 percent to 4,784 cubic meters). At the same time, a marginal downturn in shipments was seen to Pakistan, Saudi Arabia, Oman and Morocco. The UAE was the number one destination for U.S. hardwood lumber during this period and was followed by Pakistan (9,769 cubic meters), Turkey (8,858 cubic meters) and Egypt (8,614 cubic meters). In addition, exports of American hardwood logs to the MENA region during the first three quarters of this year reached a volume of 28,232 cubic meters.

In U.S. hardwood veneers, the main destination in the MENA region during the nine-month period was Egypt, which took USD 8.75 million worth, marking a rise of 23 percent from the same period in 2013. Turkey was the second most important destination, taking direct shipments worth USD 7 million during the period. It should be noted, however, that the United States is an exporter of hardwood logs and, therefore, American hardwood veneers are also produced in and exported from Europe, the Far East and the Middle East itself, so the actual market for these products is far greater than is reflected in the USDA export statistics. This is especially true in Turkey, which boasts more than 20 veneer slicing units.

Image 03 - Bahrain National Theater

The market for wood products in Turkey has developed considerably in recent years, as both the country’s construction and furniture sectors have witnessed significant growth. Turkey has become a major wood processing hub over the past few decades, with a sizeable wood-based panel industry, significant veneer slicing capacity, as well as finished furniture production. The current estimated annual veneer output from the 27 slicing units in Turkey is in the region of 1 million square meters. The construction sector is not only a demand driver for Turkish furniture and wood flooring, but it is also driving demand for interior joinery, as well as timber cladding and decking, which is leading to higher consumption of wood products in general,” said Roderick Wiles, AHEC Director for Africa, Middle East, South Asia and Oceania.

Image 01 - Roderick Wiles

In terms of species, 32 percent of the volume of U.S. hardwood lumber shipped to the MENA region during the January to September period of this year was accounted for by red oak (23,356 cubic meters. However, this share of the total is much less than it has been in previous years and this is because higher volumes of ash, white oak, walnut and tulipwood are being shipped to the region today in response to global trends. Increased exports of white oak (11,422 cubic meters), walnut (4,370 cubic meters) and hard maple (5,149 cubic meters) to the region demonstrate a consistent demand for American hardwoods across a variety of species. The volume of ash exported to the region reached 14,360 cubic meters, with around 50 percent of the total being shipped to Pakistan and about 40 percent of the remainder (3,008 cubic meters) being shipped to Turkey, mainly for the production of thermally-modified decking and cladding. “All signs point to a record year for exports of American hardwood lumber and veneer to the MENA region. With massive building and infrastructure spending driving the GCC’s construction boom, the total value of construction contracts awarded this year is expected to soar to USD 195.7 billion, up from USD 159.87 billion in 2013. Valued at USD 1.3 trillion, the outlook for the GCC’s construction sector remains positive and we expect sustained demand for American hardwoods, mainly in interior joinery, flooring and furniture, as projects near their completion dates,” concluded Wiles.