Sawnwood Market in the Middle East Lost its Growth Momentum - Global Trade Magazine
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  February 4th, 2020 | Written by

Sawnwood Market in the Middle East Lost its Growth Momentum

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  • The growth pace was the most rapid in 2014 when the market value increased by 16% year-to-year.
  • Over the period under review, the sawnwood import price, however, continues to indicate a relatively flat trend pattern.
  • The United Arab Emirates represented the key exporter of sawnwood exported in the Middle East.

IndexBox has just published a new report: ‘Middle East – Sawnwood – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

The revenue of the sawnwood market in the Middle East amounted to $1.7B in 2018, coming down by -4% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price). The market value increased at an average annual rate of +1.0% over the period from 2007 to 2018; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The growth pace was the most rapid in 2014 when the market value increased by 16% year-to-year. In that year, the sawnwood market attained its peak level of $2B. From 2015 to 2018, the growth of the sawnwood market remained at a lower figure.

Consumption By Country in the Middle East

The countries with the highest volumes of sawnwood consumption in 2018 were Saudi Arabia (907K tonnes), Turkey (816K tonnes) and Iran (489K tonnes), with a combined 55% share of total consumption.

From 2007 to 2018, the most notable rate of growth in terms of sawnwood consumption, amongst the main consuming countries, was attained by Turkey, while sawnwood consumption for the other leaders experienced more modest paces of growth.

In value terms, the largest sawnwood markets in the Middle East were Saudi Arabia ($423M), Turkey ($222M) and the United Arab Emirates ($206M), with a combined 51% share of the total market.

Production in the Middle East

The sawnwood production amounted to 8.3K tonnes in 2018, approximately reflecting the previous year. The total output volume increased at an average annual rate of +1.9% from 2007 to 2018; however, the trend pattern indicated some noticeable fluctuations being recorded over the period under review. Turkey (8.2K tonnes) remains the largest sawnwood producing country in the Middle East, comprising approx. 99% of total volume.

Exports in the Middle East

In 2018, the amount of sawnwood exported in the Middle East totaled 106K tonnes, jumping by 24% against the previous year. Overall, sawnwood exports, however, continue to indicate a relatively flat trend pattern. In value terms, sawnwood exports stood at $57M (IndexBox estimates) in 2018.

Exports by Country

The United Arab Emirates represented the key exporter of sawnwood exported in the Middle East, with the volume of exports accounting for 69K tonnes, which was approx. 65% of total exports in 2018. It was distantly followed by Turkey (24K tonnes), making up a 23% share of total exports. Oman (4,182 tonnes), Lebanon (3,923 tonnes) and Saudi Arabia (1,838 tonnes) took a little share of total exports.

From 2007 to 2018, average annual rates of growth with regard to sawnwood exports from the United Arab Emirates stood at +3.0%. At the same time, Oman (+42.8%) displayed positive paces of growth. Moreover, Oman emerged as the fastest-growing exporter exported in the Middle East, with a CAGR of +42.8% from 2007-2018. By contrast, Saudi Arabia (-1.0%), Turkey (-1.2%) and Lebanon (-13.9%) illustrated a downward trend over the same period.

In value terms, the United Arab Emirates ($36M) remains the largest sawnwood supplier in the Middle East, comprising 64% of total sawnwood exports. The second position in the ranking was occupied by Turkey ($12M), with a 20% share of total exports. It was followed by Lebanon, with a 5.1% share.

Export Prices by Country

In 2018, the sawnwood export price in the Middle East amounted to $532 per tonne, remaining stable against the previous year. In general, the sawnwood export price continues to indicate a slight contraction.

There were significant differences in the average prices amongst the major exporting countries. In 2018, the country with the highest price was Lebanon ($729 per tonne), while Turkey ($479 per tonne) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by Lebanon, while the other leaders experienced a decline in the export price figures.

Imports in the Middle East

In 2018, the imports of sawnwood in the Middle East stood at 4.1M tonnes, shrinking by -13.2% against the previous year. The total import volume increased at an average annual rate of +1.5% from 2007 to 2018; however, the trend pattern indicated some noticeable fluctuations being recorded over the period under review. Over the period under review, sawnwood imports reached their maximum at 4.7M tonnes in 2017, and then declined slightly in the following year. In value terms, sawnwood imports stood at $1.7B (IndexBox estimates) in 2018.

Imports by Country

Saudi Arabia (909K tonnes) and Turkey (832K tonnes) represented the main importers of sawnwood in 2018, recording approx. 22% and 20% of total imports, respectively. The United Arab Emirates (508K tonnes) held the next position in the ranking, followed by Iran (489K tonnes) and Israel (464K tonnes). All these countries together held approx. 35% share of total imports. The following importers – Lebanon (132K tonnes), Kuwait (122K tonnes), Jordan (118K tonnes), Oman (112K tonnes), Yemen (106K tonnes), Qatar (90K tonnes) and Iraq (81K tonnes) – together made up 19% of total imports.

From 2007 to 2018, the most notable rate of growth in terms of imports, amongst the main importing countries, was attained by Turkey, while imports for the other leaders experienced more modest paces of growth.

In value terms, Saudi Arabia ($423M), the United Arab Emirates ($247M) and Turkey ($224M) constituted the countries with the highest levels of imports in 2018, together comprising 52% of total imports.

Import Prices by Country

The sawnwood import price in the Middle East stood at $414 per tonne in 2018, increasing by 14% against the previous year. Over the period under review, the sawnwood import price, however, continues to indicate a relatively flat trend pattern.

Prices varied noticeably by the country of destination; the country with the highest price was Yemen ($717 per tonne), while Turkey ($269 per tonne) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by Yemen, while the other leaders experienced more modest paces of growth.

Source: IndexBox AI Platform