EU Anti-Dumping Duties Trigger Trade Realignment as China Plywood Prices Slide 2% in December

An event that defined the month was the imposition of definitive EU anti-dumping duties on Chinese hardwood plywood from December xxxx. The duties, at nearly xx.xx for the majority of Chinese producers, constitute a significant increase from previous provisional rates and have considerable consequences on global trade flows. The punitive tariffs have dramatically negatively impacted the cost competitiveness of Chinese plywood in the EU market and European buyers have significantly diversified their sourcing portfolios away from China to other suppliers, the main one being Vietnam.  As a consequence, China’s plywood exports to Europe experienced a significant decline at the end of the year, further depressing an already weakened pricing.

Domestic market got little rest. Dec xxxx activity Construction of new houses in China tumbled to the lowest level in almost xx years in December xxxx, slumping demand for plywood and other wood-based panels. The long-lasting...