European economic slowdown affecting timber wood trade signals

According to a recent International Tropical Timber Organization (ITTO) of the "ITTO Tropical Timber Market (TTM) Report," this year may be the European hardwood trade in a difficult year. This year, Europe's gloomy economic forecast.
The latest issue of "The Economist" on the article, said: "February 14 released figures show that by the end of 2007 the European economy dropped drastically. Europe's fourth-quarter GDP growth, although a little stronger than the United States, but lower than its previous figure down a lot. "This shows that Europe's two largest economic powers - Germany and France, its economic growth than the average in the region lower. Italy's figures have not announced yet, but predicted that its the last quarter of 2007, the economy is also shrinking.
To make matters worse, Europe as a whole is not facing the export competition is fierce, so the current economic slowdown is clearly due to lower demand due to its internal. Trends in consumer spending was sluggish in Europe, the European Commission's consumer confidence index shows that since July 2007 has reduced this figure by 10 percent, fell to its lowest point since 2003.
Meanwhile, the housing market slowed down, oil and food prices, curbing consumer spending power. The European Central Bank Chairman confirmed that the current economy is facing increasing risk of low, so the ECB is unlikely to increase the deposit rates, but is unlikely to lower interest rates.
The situation is outside of the European market, and will not necessarily much better. Britain's economy last quarter of last year, the situation seems good, but it was only better than the third quarter, an increase of 0.6%, and in 2008 the forecast is not optimistic. The Bank of England governor said that this year they are facing in a certain period of inflation is likely to exceed people's expected and the market remained in the doldrums. British real estate market is the same as the banking industry brought to its knees.
Veneer market is subject to the economic impact of Europe
Veneer industry conditions will affect a variety of high-quality timber prices and market supply, through the veneer industry conditions, we can see that the entire timber market trends. Therefore, it was said that the entire wood veneer market changes weathervane.
Veneer market, the news from Europe confirmed that the European economy to the veneer industry cast a shadow. According to reports, German veneer enterprises currently operating at full load operation only when the 70% ~ 80%. While some parts of the operation a little better, but did not reach the level of operating at full capacity.
The manufacturer's inventory levels higher than in the past. German veneer markets are facing a particularly serious problem, mainly due to the German construction market downturn affected the doors of the German domestic market demand. German furniture market and other European markets, stagnation, this situation is also not available from other European countries or countries outside the European market to be remedied. The construction market downturn, a buyer's market decline as well as the international financial market uncertainty is leading to a gradual decline veneer industry.
Dark furniture led the popular wind
Over the past 10 years, the tropical timber in Europe fashion trends, from deep to shallow wood color changes in wood color. White oak hardwood in all the unique, demand and prices both rising. However, the European Union data show that wood floor, this trend is changing, and the trend is increasing.
From 2005 to 2006, tropical timber wood flooring in the whole of the share of production from 16.6% to 13%. In recent years, the world's hard wood is the world's hardwood trend followers, their consultants Michael? Barker recently in "Asian plate and furniture," published article says: furniture market cycles are often shown from the appearance of wood flooring change may lead a trend. The European furniture, is undergoing significant change such that the color of the furniture is becoming more and more deeply, so in the future, such as teak, as well as a number of timber species in South America will gradually be popular.
British "Timber Trade Journal" (TTJ) on the trends on the European wood flooring article also shows that low-grade wood or vinyl products growing demand for cold-shouldered, consumers began to seek different, for the pursuit of exotic wood walnut, pangapangaandwenge are becoming increasingly favored.
In addition, the depth of contrast has become a trend, such as the dark flooring and furniture, with light and vice versa. Therefore, the increase in demand for dark furniture, but also to increase their light-colored wood species, such as beech and ash wood kinds of needs.
The evidence also demonstrates that the current trend, as long as the certification of tropical timber, then in Europe, is the most promising. European timber producers are willing to develop and promote tropical timber products, of course, the premise that they can continue to provide access to the adoption of certified timber.
"Timber trade" reported in mid-February, although this year's trade confidence index and the start of 2007 than when obviously inadequate, but the European plywood market, start stabilizing.