Transcript Panels Timber Committee forecasts by Mr. Jorge Najera Expert presentation by Mr. Olli Koskiranta, Vice-President, Business Development, Finnforest Corporation UNECE TIMBER COMMITTEE Sixtieth session, 24-27 September 2002

Panels
Timber Committee forecasts by
Mr. Jorge Najera
Expert presentation by
Mr. Olli Koskiranta, Vice-President, Business
Development,
Finnforest Corporation
UNECE TIMBER COMMITTEE
Sixtieth session, 24-27 September 2002
Highlights of Forest Products Annual
Market Review 2001-2002
• Panels industries restructuring to increase
profitability.
• North American consumption of panels was
steady.
• European consumption of wood-based panels
dropped by 4%.
• Russian Federation consumption of woodbased panels climbed 15%.
UNECE TIMBER COMMITTEE
Sixtieth session, 24-27 September 2002
EUROPE
Total Wood-based Panels
% change
2002
2003

Apparent
consumption
- 1.4
+ 0.1
Production
+ 1.2
+ 1.0
Imports
- 2.7
- 0.7
Exports
+ 3.4
+ 1.5
UNECE TIMBER COMMITTEE
Sixtieth session, 24-27 September 2002
NORTH AMERICA
Total Wood-based Panels
% change
2002
2003

Apparent
consumption
- 1.7
- 0.7
Production
- 0.8
- 0.4
Imports
- 6.3
- 1.5
Exports
- 3.6
- 0.2
UNECE TIMBER COMMITTEE
Sixtieth session, 24-27 September 2002
RUSSIAN FEDERATION
Total Wood-based Panels
% change
2002
2003

Apparent
consumption
+ 5.0
+ 5.4
Production
+ 6.0
+ 8.7
Imports
+ 2.8
- 9.4
Exports
+ 7.5
+ 8.6
UNECE TIMBER COMMITTEE
Sixtieth session, 24-27 September 2002
Europe: Particle board
(including OSB)
40 000
35 000
1000 m3
30 000
25 000
20 000
15 000
10 000
5 000
0
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Production
Im ports
Exports
UNECE TIMBER COMMITTEE
Sixtieth session, 24-27 September 2002
Highlights of Forest Products Annual
Market Review
• European particle board industry restructured
in 2001.
• EU/EFTA particle board production dropped
by 6%.
• “Other Europe” particle board production
dropped 2.8%.
UNECE TIMBER COMMITTEE
Sixtieth session, 24-27 September 2002
Europe: OSB
1000 m3
3 000
2 000
1 000
0
1995
1996
1997
1998
Production
1999
2000
Im ports
2001
2002
Exports
UNECE TIMBER COMMITTEE
Sixtieth session, 24-27 September 2002
2003
Highlights of Forest Products Annual
Market Review
• In Europe production of OSB set a new
record level of 1.6 million m3.
UNECE TIMBER COMMITTEE
Sixtieth session, 24-27 September 2002
Europe: Fibreboard
15 000
1000 m3
12 000
9 000
6 000
3 000
0
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Production
Im ports
Exports
UNECE TIMBER COMMITTEE
Sixtieth session, 24-27 September 2002
Europe: MDF
10 000
1000 m3
8 000
6 000
4 000
2 000
0
1995
1996
1997
1998
Production
1999
2000
Im ports
2001
2002
Exports
UNECE TIMBER COMMITTEE
Sixtieth session, 24-27 September 2002
2003
Highlights of Forest Products Annual
Market Review
•MDF production in the EU/EFTA
continued its rapid expansion.
•MDF production in “Other Europe”
expanded 1.5 million m3.
UNECE TIMBER COMMITTEE
Sixtieth session, 24-27 September 2002
Europe: Plywood
6 000
1000 m3
5 000
4 000
3 000
2 000
1 000
0
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Production
Im ports
Exports
UNECE TIMBER COMMITTEE
Sixtieth session, 24-27 September 2002
Highlights of Forest Products
Annual Market Review
• Softwood plywood production in EU/EFTA
countries was down.
•Softwood plywood production increased by
more than 6% in “Other Europe”.
•Softwood plywood production increased by
almost 13% in the Russian Federation.
UNECE TIMBER COMMITTEE
Sixtieth session, 24-27 September 2002
North America: Plywood
25 000
1000 m3
20 000
15 000
10 000
5 000
0
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Production
Im ports
Exports
UNECE TIMBER COMMITTEE
Sixtieth session, 24-27 September 2002
North America: Structural
panel production
25 000
1000 m3
20 000
15 000
10 000
5 000
0
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
OSB
Plyw ood
UNECE TIMBER COMMITTEE
Sixtieth session, 24-27 September 2002
Highlights of Forest Products Annual
Market Review 2001-2002
• Continued substitution of plywood by OSB in
the United States.
• OSB production in North America continued
upwards reached 20 million m3.
UNECE TIMBER COMMITTEE
Sixtieth session, 24-27 September 2002
STRUCTURAL PANEL COMPOSITE PRICE
(RANDOM LENGTHS)
475
450
400
375
350
325
300
275
250
225
UNECE TIMBER COMMITTEE
Sixtieth session, 24-27 September 2002
20
02
20
01
20
00
19
99
19
98
19
97
19
96
19
95
200
19
94
$ / 1000 board feet
425
PRICES OF OSB AND FRAMING LUMBER
IN THE UNITED STATES
1995-2002
500
450
400
$
350
300
250
200
150
100
1995
1996
1997
1998
1999
2000
OSB
Framing sawnwood composite price
UNECE TIMBER COMMITTEE
Sixtieth session, 24-27 September 2002
2001
2002
North America: Particle board
(excluding OSB)
15 000
1000 m3
12 000
9 000
6 000
3 000
0
1995
1996
1997
1998
Production
1999
2000
2001
Im ports
Exports
UNECE TIMBER COMMITTEE
Sixtieth session, 24-27 September 2002
2002
2003
North America: Particle board
(excluding OSB)
250
$ / 1,000 square feet
230
210
190
170
150
130
110
1995
1996
1997
1998
1999
2000
UNECE TIMBER COMMITTEE
Sixtieth session, 24-27 September 2002
2001
2002
North America: Fibreboard
10 000
1000 m3
8 000
6 000
4 000
2 000
0
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Production
Im ports
Exports
UNECE TIMBER COMMITTEE
Sixtieth session, 24-27 September 2002
North America: MDF
4 000
1000 m3
3 000
2 000
1 000
0
1995
1996
1997
1998
Production
1999
2000
Im ports
2001
2002
Exports
UNECE TIMBER COMMITTEE
Sixtieth session, 24-27 September 2002
2003
Highlights of Forest Products Annual
Market Review
• MDF production in North America remained
close to 2000 levels.
UNECE TIMBER COMMITTEE
Sixtieth session, 24-27 September 2002
Next presentation
Mr. Olli Koskiranta, Vice-President,
Business Development,
Finnforest Corporation,
Metsä, Finland
UNECE TIMBER COMMITTEE
Sixtieth session, 24-27 September 2002