International market for timber, pulp and paper in the first half of 1987

In the 1st half of 1987 economic development in industrialised countries was slower than expected at the beginning of the year. According to guesses, 1987 will probably be the year of the mild recession. It is partly due to the weakening of the Dollar, since countries strongly export oriented faced certain difficulties. The development of the wood market however, was better than expected. High activity in housing and revitalised demand for furniture in the USA have contributed to the growth of Canadian lumber exports and prices. Scandinavians have, up to the end of 1986, sold significant quantities prepared for exports in the 1st half of 1987. Up to the end of the 1st quarter of 1987 all the quantities previsioned for the 1st part of the year were sold out, even more. High demand enabled gradual price rise, esp. fir/spruce lumber. USSR have earlier than previous years handed their first and second offers to the UK and other European countries, with corrected higher prices. The demand in the Mediterranean has risen significantly, esp. in Egypt. Austrian exporters didn't recover the drop in demand of the Levantine, and stagnation of the Italian imports. The demand of oak lumber, seasoned and of high quality, due to the fashion trends in the furniture industries, was higher than supply. The demand for logs and lumber of exotic timber was higher than in the same period of the previous year. The plywood market was influenced by the weakening Dollar, and high supply from the South Asian countries. Particle board market suffered less from overcapacities. The demand for pulp and most part of paper grades was high, the prices rising.