Statistic Analysis Hardwood Lumber - Appalachian Hardwood
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AHEC Mexico/Latin America Market Report November 2020
AHEC Update MEXICO/LATIN AMERICA
Statistic Analysis
Hardwood Lumber
The US Census Bureau Trade Data lumber exports into Mexico and that June 2020 when hardwood lumber
has released the statistics for can be easily explained due to the shipments dropped by almost 30
September 2020 where we can see manufacturing of the cage for panel percent to the southern neighbor.
that despite the fall of 20 percent in trucks by a well-known Korean car
value and 13 in volume, Mexico manufacturer through a maquila Although furniture manufacturers
continues to be the fourth most operation in Mexico. have been working incessantly yet
important market for hardwood not at full gas, they are relying on
lumber exports after China, Vietnam Cherry lumber reported a dramatic their current stock and whatever
and Canada in that order. Almost downfall during this period when they settled before the pandemic
$6.00 out of every $100.00 dollars of compared to 2019 given that China started. Traders, on the other hand,
all hardwood lumber export sales is the major buyer today for Cherry are less shy on purchases but at a
have come from Mexico and $3.71 and almost 9 out every 10 boards gingerly pace re-stocking what is on
out of every $100.00 are from Red produced for export are going there. demand.
Oak lumber only regardless of the
loss of 9% in value and 8% in Hardwood lumber exports to Mexico AHEC Mexico has held a series of
volume for this species in the period account for $70.6 million dollars as Zoom sessions with timber traders
of January to September of 2020 of September 2020, a drop of 20 and furniture suppliers of different
compared to the same period in percent if compared to the same associations having very positive
2019. period in 2019 derived from 185,112 results and an optimistic feeling of
cubic meters, meaning that the rebooting the market by the first
What really is an eye-catching fact is market is beginning to recover after quarter of 2021.
the astounding increase of 49% in being seriously hit by the pandemic ,
value and 52% in volume of hickory if we remember the figures from
American Hardwood Export Council Page 1
AHEC Mexico/Latin America Market Report November 2020
All Hardwood
Products
Not only Mexico is the 4th top All important markets for hardwood
Hardwood Products market for siding. Veneer exports to Mexico reached
h a rd w o o d l u m b e r b u t f o r a l l 12.6 million square meters, or 136.2
hardwood products as whole. Hardwood lumber, siding and million sq ft meaning $18.2 million
Regardless of the nosedive on veneers are the top three products dollars, which represents 10.3% of
shipments of hardwood siding, 98.7 shipped to Mexico as of the ninth the total veneer shipments out of the
percent of the export production has month of the year accounting for 96 US to the world, placing Mexico as
been sent to Mexico accounting for percent of all sales to the country, the second largest market for
$43.3 million dollars for some 6.8 the remaining 4%, or $5.7 million hardwood veneers.
million square feet, ranking the dollars, is split between plywood,
country in the first place for the most logs, flooring, chips and molding.
AHEC Activities
Amongst the now new normality in
working from a distance, AHEC has
not stopped having contact with the
trade a key players in the market ,
AHEC held a round table with
professionals of the fur niture
supplying industry and timber
t r a d e r s m e m b e r s o f d i ff e re n t
associations to discuss the current
situation of the wood market in
Mexico. The session was recorded Above - AHEC Zoom panel with specialists of the wood industry
and is available to AHEC members
at https://youtu.be/p9gUKmjFOA4
including trade shows, seminars and accreditation of the GBAC (Global
Habitat Expo practically all AHEC activities
involving mass gatherings and
Biorisk Advisory Council) Star
F a c i l i t y c e r t i fi c a t i o n v i a t h e
having the travel topic out of the implementation of GBAC filters to
After having the vast majority of
question, the only trade show that guarantee filtering of 40% of the
events been postponed initially at
survived took place on the outdoor air as well as the use of a
the beginning of the pandemic and
beginning of November in Mexico much more comprehensive system
then most of them cancelled
City not without seeking the of measures and protocols
American Hardwood Export Council Page 2
AHEC Mexico/Latin America Market Report November 2020 necessary for the cleaning, and sanitization of both the staff and the premises. The show also allowed 30% of the visitors that would normally be allowed by the venue. AHEC staff worked within a fenced stand to give information and technical material to all the visitors. To prevent physical contact most of the technical publications were downloaded via a QR code. All AHEC staff stays healthy and working from home Right - AHEC staff working behind a fenced safety area. Below - AHEC stand featuring QR codes to download technical publications. American Hardwood Export Council Page 3
AHEC Mexico/Latin America Market Report November 2020
MEM + TecnoMueble IMEXFOR News Mexico has used eight-digit tariff
c l a s s i fi c a t i o n s s i n c e t h e
The Magna Expo Mueblera or MEM implementation of the Harmonized
or its name in Spanish and During IMEXFOR Extraordinary system in 1988.
TecnoMueble are two trade shows General Assembly on November 27,
that have been providing the it was announced that the Mexico’s The Ministry of Economy also
furniture supplying industry with a Ministry of Economy announced published the methodology for the
myriad of options for the past 30 that the criteria for obtaining creation and modification of these
years. The first in Mexico City and automatic amendments to the tariff commercial identification numbers
the latter in Guadalajara, Jalisco schedule was already published in on August 28, 2020. The publication
of the goods classified in the new
ten-digit commercial identification
numbers is still pending.
This means that Mexico will now
have a harmonized 10 digit tariff
system but by no means will modify
the dues, fees or tariffs that have to
be paid by the importer, this is all
about paperwork for custom agents
when processing the ‘pedimento’.
Although the US has been working
under the 10 digit scheme for many
years now, Mexico’s 10 digit norm
may not match exactly the American
tariff numbers since each country
establishes and determines the
Zoom Press Conference by Hannover Fairs
merchandise that enters their
territory in their very own
classification. The 10 digit number
have now been sold to the German the Diario Oficial and will be of commercial identification (NICO)
company Hannover Fairs along with effective as of December 28, 2020. only describes more thoroughly the
the smaller show from AMPIMM product that is being imported.
(Mexican Association of Suppliers The New Complimentary Rule 10
for the Wood and Furniture Industry) establishes the methodology for
merging in one single show that will creating and modifying commercial
be held alternating venues between identification numbers referenced by
Mexico City and Guadalajara every two digits added to the end of the
year, for 2021 it will be held in full eight-digit tariff classification.
Guadalajara on August 18-21 and
for 2022 it will be held on mid-
January. Hannover Fairs has
promised to make this single show
grow and make it the most
i m p o r t a n t s h o w f o r f u r n i t u re
supplies in the country with
expectations to have over 11,000 sq
meters of exhibition area for 2023.
This was announced during a press
conference via Zoom to over 240
participants of the media and the
industry.
IMEXFOR Extraordinary General Assembly via Zoom
American Hardwood Export Council Page 4
AHEC Mexico/Latin America Market Report November 2020
Latin America is the state of Pernambuco in the
north eastern region of Brazil where
other products such as non-
coniferous roundwood exports
exports dropped 38%. increased 23% year on year to a
Focus on Brazil - With less than Source: ITTO record 700,000 cu.m.
two months left to the end of 2020,
Brazilian furniture exports have not Domestic demand recovering and International demand for wooden
risen as in some other producer exports of most wood products doors expanded over 20% with
countries despite the highly rising - At the beginning of the some 70% of exports going to the
favourable exchange rate which has pandemic there were forecasts of US. Exports of value-added
clearly benefitted wood panel reductions in domestic demand and products were expected to be
exporters. In the case of furniture, exports, notably of solid wood severely impacted by the pandemic
2020 is expected to end with export products. The expectation was for a but this proved wrong. The
earning at about the same level as in decline in domestic and pandemic did affected exports at
2017, that is around US$650 million. international demand for all forest the beginning of the year but the
products throughout 2020 and into situation has changed dramatically
Between January and September 2021. over the past two or three months.
2020 furniture exports totalled
US$465.2 million, 10% less than in After six months and with the Comparing August 2020 with the
the same period of 2019. The main pandemic affecting 30 million same month in 2019 exports of
exporters are concentrated in the people, the scenario is markedly tropical plywood almost doubled,
southern region of the country. The different from that forecast. The pine plywood exports were up 45%
states of Santa Catarina, Rio Grande Brazilian domestic market is already and pine sawnwood exports
do Sul and Paraná together account showing signs of recovery with increased 68%. However, furniture
for 80% of total exports with half of resumption of civil construction and exports have not yet recovered.
this coming from Santa Catarina. exports of most wood products
have increased. This picture is totally different from
Among the states that exported over that foreseen at the beginning of the
US$1 million in the first 9 months of Although there was a drop in pandemic when a 30% to 40%
the year Rio de Janeiro in the south exports for some products, overall reduction in Brazilian exports of
eastern region, showed the greatest there was growth in the first seven solid wood products was projected.
expansion a doubling of exports months of this year. Exports of
going from US$929,000 to US$1.9 veneers stand out although export Source: Revista Referência Florestal
million dollars. At the other extreme volumes are still small. However, (October, 2020)
American Hardwood Export Council Page 5
AHEC Mexico/Latin America Market Report November 2020
compared to the record of 20.2620 appreciation of 1.85 cents or a
Exchange rate units per dollar at the end of variation of 0.09 percent. The
November 18, reported the Bank of crosshair moves in a range between
Mexico (Banxico). a maximum of 20.4320 units and a
The Mexican peso traded with gains minimum of 20.2032 units per dollar.
against the dollar as of November The movement of the parity means
19. The spot exchange rate stands for the local currency an
at 20.2435 units per dollar
AHEC Latin America forthcoming events
Event Date Description Venue
FIMMA Bazil April 26-29, 2021 Trade show for industrial wood Bento Gonçalves, RS
processing and furniture Brazil
manufacturing
Habitat Expo May (TBD) A show that targets interior World Trade Center
designers, architects and Mexico City
developers. Mexico
Exphotel June 15-19, 2021 Trade show targeting the ICC Cancun Centre
hospitality industry of the riviera Cancun, QR
Maya area. Interior decoration, Mexico
remodeling and maintenance
professionals.
ForMobile June 22-25, 2021 Trade show for industrial wood Expo Sao Paulo
processing and furniture Saõ Paulo
manufacturing Brazil
Interzum Bogota June 22-25, 2021 Trade show for industrial wood Corferias Center
processing and furniture Bogotá, Colombia
manufacturing
American Hardwood Export Council Page 6
AHEC Mexico/Latin America Market Report November 2020
PR Highlights
Above: Sector Mueblero Magazine - ‘Connected’ 2-page article
Circulation - 10,000
Unpaid worth - US$ 6,200
Above: Design Hunter Magazine - ‘Sebastian Angel’ 4-page article
Winner AHEC Design Awards 2018
Circulation - 30,000
Unpaid worth - US$ 25,600
American Hardwood Export Council Page 7
AHEC Mexico/Latin America Market Report November 2020
American Hardwood Export Council
Latin America Office Headquarters
Sierra Candela 111-201 42777 Trade West Drive
Col. Lomas de Chapultepec 20166 Sterling, VA
11010 Mexico, DF United States of America
Mexico
T. 703-435-2900
T. +52 (55) 2623-1850
luis@ahec-mexico.org tpryor@ahec.org
www.ahec-mexico.org www.ahec.org
www.americanhardwood.org
American Hardwood Export Council Page 8
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