Timber market in 1981 and prospects for 1982

A fall in demand of sawn timber and boards that started in the second half-year 1980 continued up to the end of the third quarter 1981. The United States after a heavy fall in 1980 recorded no recovery in 1981. The fall in demand was also noted in the other parts of the world, Japan as well. To the late autumn 1981 the woodpulp industry has not been affected by the factors causing recession on the market of the products of mechanical working of wood in Europe and the United States. Among those factors the two should be mentioned: the influence of the increased prices of oil 1979/80 on economy of almost all countries and taking measures to fight inflation with the emphasis on limitation of credits and increase of rates of interest. Efforts were made to cut down public consumption, which considerably affected the housing construction and the cost of holding stock. Number of built up apartments in Europe and the United States was lower than in many preceding years. Fluctuation of rates of exchange led to a permanent insecurity on the timber market. The progress on the timber market in 1982 is rather difficult to forecast because of insecure economic development in the next months or the next year. However, the revival shall take place though it is not possible to foresee its start of extent, both depending on the economic situation in general. In spite of this, the importers on the 39th Conference of Timber Committee in Geneve showed a moderate optimism. lt had also a reflection on their estimate of import in 1982.