For the Quarter Ending March 2025
North America
In United States, the first quarter of 2025 the market experienced a decline in plywood demand compared to fourth quarter of 2025. The US construction industries exhibited variables, indicating growth in a few sectors and other facing challenges. The opening two months of 2025 faced a sharp decline, but the third month slightly uplifted the market. This decline reflected a complex interplay between supply management and market conditions. To meet the profit margins the manufacturers have deliberately increased the prices of plywood but still this strategy could not lift the market. This strategy was meant to balance rising operational costs while maintaining financial sustainability. No major disruptions were reported, the production of plywood across the key sector has remained steady.
However, the United States export market for plywood has encountered to increased challenges. Competition from international suppliers offering low-cost alternatives especially from countries from APAC region like China & Indonesia dominating the global competitiveness. As a result, opportunities for exporting plywood have been limited, compelling many U.S. manufacturers to shift their focus toward the domestic market. Despite these export pressures, the importers also faced challenges for importing of plywood in United States. The new tariff regime made under the current U.S. administration has shuffled the global dynamics.
APAC
In the first quarter of 2025, the Chinese Plywood market showcase mixed performance. The Chinese exports surged in February, later the market weakened in March due to the oversupply and sluggish demand.
The China increase its plywood production in February for exports as the overseas construction were boomed. The inventory supply continued to support international demand, but the demand was not much to restock the inventories. March Plywood prices declined by 2.9% reflecting the weak market sentiment and limited terminal consumption. The strong overseas demand was not sufficient to absorb the stocks, and oversupply inventory levels have put downward pressure on plywood industries to lower the price.
In the first quarter of 2025, Indonesian plywood market experienced strong export momentum and robust domestic demand. With an uptick of 2.81% in prices the plywood market was supported by infrastructure projects and custom plywood product. However, the market navigated challenges from raw material cost volatility and environmental compliance.
The export competitiveness rose, especially in ASEAN+3 aided by tariff and digital trade integration. Indonesia held 10.3% of the market share in 2024 and continued the same in 1Q 2025.
Europe
In the first quarter of 2025 the German plywood market expressed considerable price volatility and supply chain challenges. The challenges were shaped due to rise in import costs, tariffs on Russian plywood, and logistical disruptions dropped plywood prices by 0.85%. While in the early quarter demand was strong, and March saw a slowdown due to project delays and high costs. Plywood imports were reduced, the buyers were pushed to buy costlier alternative of Russian birch plywood after EU imposed 28% tariff on Russian. Due to EU tariff the tight availability of Plywood escalated the price.
The first quarter of 2025 ended still firmly in contraction territory. While the rate of decline in activity. Considerable decline in estates, the building firms remained in retrenchment mode, reducing manpower and material purchasing in March.
The residential sector exhibits a sharp rate of decline in contraction for the opening three months of 2025. The decline in commercial activity led to the fall of contractions in Europe, the fall markedly to the greatest extent since last December. Civil engineering also posted its worst performance for three months.
South America
Slow and steady South American plywood market seems to recover after the massive drop received in December. Brazilian plywood export experienced notable growth in the first quarter of 2025, with a 4% year to year increase in February and a sharp 42% increase in March.
This key driven support came though overseas construction and furniture industries, particularly in North America and Europe. Brazil is known for its reputed for high quality plywood and improved international logistics capabilities, such factors helped Brazil for exports growth.
The demand trend at the domestic market reflected good plywood sales, assisted by housing project (urban infrastructure expansion) and growth in the furniture manufacturing sector. Exports in March surge led to temporary tightening of domestic supply, this contributed to a modest rise in prices.
Brazil sustained its production supported by well structured manufacturing infrastructure and abundant timber reserves. Brazil thoroughly maintained its inventories for ease of supply. February became a slightly challenging month due to ongoing compliance of environmental and sustainability regulations.
