Wood & Panel
Home » Featured News » China stabilises its demand for plywood during trade tensions

China stabilises its demand for plywood during trade tensions

 Wednesday, August 20, 2025

China-plywood

The largest importer of softwood logs and lumber worldwide, China, is beginning to stabilise its import quantities. European demand for Chinese plywood has stabilised but remains at historically depressed levels, as rising trade tensions and legally enforced restrictions increasingly hamper imports. According to Timber Industry News, Chinese plywood exports to Europe totaled over 3.25 million m³ during Q2 2025—up 7% compared to the previous year—yet shipments declined quarter-on-quarter for the first time since 2022, indicating market fatigue and saturation. Despite the high export volume, demand has not rebounded significantly.

Anti-dumping duties and import registration

Brussels has taken aggressive action against Chinese plywood imports, introducing provisional anti-dumping duties of up to 62.4% on hardwood plywood from China, effective June 2025. One company—Pizhou Jiangshan Wood Co Ltd—has received a reduced rate of 25.1%, owing to cooperation during the investigation.

These enforcement efforts trace back to an inquiry initiated in October 2024, following a complaint filed in August by the Greenwood Consortium. Complaints focused on Chinese plywood undercutting EU production and harming profitability. Additionally, all Chinese hardwood plywood imports must now be registered at EU borders, enabling retroactive enforcement of duties. This stringent tracking prevents importers from stockpiling products before tariff changes.

Industry pressures and market rebound expectations

A comprehensive investigation covering July 2023–June 2024 found a marked decline in EU plywood producers’ profitability, dropping from a profit in 2021–2022 to losses by 2023. Imports from China surged 16% during this period, with volumes peaking in 2022. While EU production capacity exists, a spike in Chinese imports forced producers to cut output. The Commission maintains that these regulations aim to restore the sector’s profitability and stability. Company executives, like those from PAGED Plywood, have welcomed the measures, interpreting them as a clear defense of fair competition.

Within Europe’s plywood sector, opinions diverge. The Greenwood Consortium advocates for stronger protectionist measures to safeguard local producers. In contrast, the Plywood Trade Interest Alliance (PTIA) cautions that broad restrictions could disrupt supply chains and raise costs for consumers and downstream manufacturers. These developments come amid escalating friction between the EU and China. Trade disputes now stretch across multiple sectors—including electric vehicles, medical devices, and rare earths—resulting in reciprocal sanctions and retaliatory measures.

The plywood conflict represents a pivotal flashpoint in this broader trade standoff, underscoring EU efforts to secure fairer market conditions and sustainable forestry practices.

Implications

1. Supply adaptation

Woodworking professionals sourcing hardwood plywood from China should prepare for higher costs and reduced availability. Alternative supply chains—such as Vietnam or local EU manufacturers—may become more attractive and necessary.

2. Budget realignment

Incorporating tariffs into budgeting is critical; effectively, costs could increase by up to 62%. Order timing and supplier geography should play a renewed role in procurement strategies.

3. Portfolio diversification

Stabilising your material portfolio by combining local EU and non-Chinese imports can hedge risk and support continuity.

4. Sustainability & traceability

The mandatory registration of imports and focus on legal sourcing may offer a route to promote sustainability—aligning compliance with brand reputation and market trust.

Let’s have a glance at the table shown below:

FactorDescriptions
Q2 2025 Exports3.25 million m³ from China, +7% YoY, but quarter-on-quarter decline
EU Anti-Dumping DutiesProvisional rates up to 62.4% (25.1% for one compliant firm)
Borders RegistrationMandatory tracking to enable retroactive enforcement
Impact on EU ProducersProfits turned to losses; viability threatened by price competition
Industry OutlookMixed—protectionism vs. open markets debate in progress

European demand for Chinese plywood has plateaued at subdued levels amid rigorous regulatory intervention and deepening trade tensions. For woodworking professionals, the message is clear: navigate procurement proactively—consider supply diversification, pricing pressures, and regulatory compliance as central to your sourcing strategy.

Read more news on: timber and sustainability

Get such updates through the American woodworking industry website: woodandpanel.us

Tags: , , , , ,

Comments:

Our Partners

LINKEDIN