EU tropical hardwood imports from Malaysia hit a low of 53,000cu.m/month at the end of 2012 and remained at this level until September 2013. However, EU imports from Malaysia surged during the autumn months to an average of close to 75,000cu.m/month.
The surge is partly due to improvement in the UK economy and some early signs of life in the Netherlands construction market. A range of EU policy measures also contributed to the rapid increase in imports from Malaysia at the end of 2013.
Loss of Malaysia's preferential status under the EU's Generalised Scheme of Preferences (GSP) meant that EU import duties on Malaysian products increased from 3.5% to 7% on 1 January 2014. This encouraged importers to restock in advance of the deadline.
Meanwhile the EU Timber Regulation has given Malaysian plywood shippers a competitive boost relative to Chinese manufacturers that have struggled to meet new demands for legal documentation.
The EU's Construction Products Regulation has also benefited Malaysian shippers of higher quality plywood products able to meet new technical performance standards.
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