Europe and the wood markets?

[bkellyvtme]

What effect do you suppose it would have on the wood markets if europe was to get into financial trouble? Do we really send alot of wood to them? I know they get pellets and chips, but what about finished lumber and such? They must have a pretty good domestic supply right?

[Autocar]

Iam sure it would be pretty bad for alot of loggers , I sell almost all my walnut and white oak to the Germans ,from what Iam hearing the walnut market took a slide this past week but thats pretty coman for this time of year. But I don't think we have seen the bottom of this slow down yet. In my area red oak butt logs delivered .43 cents and then they don't even want them, pretty sad. If its not white /bur oak you might as well stay home !

[craigc]

I think you better get ready for the worst and hope for the best.  I have a friend whos brother still lives in Germany, he and his friends have been buying property to get rid of thier cash. They have no faith in the Euro.

[bkellyvtme]

My brother was born, raised and still lives in England and he is really glad they are not part of the Euro.

[SwampDonkey]

The British £ has always been worth more than the Euro from the get go.

[craigc]

I guess what I think the answer to the question is "Yes".  The Hardwood side of this industry relies on the Europeans to buy are product.  The walnut drop can somewhat be blamed on Europes economic problems.  White Oak will maybe tail off next.  Which will not be good for loggers there just not much out there to make decent money on as it is.  Just wait til are debt reaches 20 trillion and see what that does for us.

[bkellyvtme]

Well, time will tell. I hope it all goes good and markets pick up (as we all do) and europe can take care of their problems.

[roquevalente]

I am not quite informed on the wood sales from the US to Europe but I believe it is substantial. What we do know is that for our market (ipe from South America) to the US is far lower then to Europe, this means that according our numbers the US is in worse state then is Europe. If you count all debt together from all European countries you will not get the number of the US debt. So is the Euro from the past, I do not think so. According to debt figures, the US dollar would be much more inferiour then the Euro (and that is why it also is) 1.25 USD = 1 Euro.
Germany by the way is growing and just now the employees have received a salary increase of 4%. To my opinion Greece may be sacked because they cheated to get access to the Euro in the first place.
In respect of the ipe sales, yes Europe is down but not so much as the US, hower, prices are still very good because of new markets like Turkey and India....
I hope I have not offended anybody and given some insight from a different angle. I hope that all economies go up ASAP and that we may make a lot of $$$ one day..

[Ron Wenrich]

I agree with your assessment of the Euro vs the dollar.  But, the problem right now is that neither the EU or the Americans have much appetite to putting on private debt.  This is where the markets are at.  When consumers get new confidence, then they'll go back to building new houses and buying new furniture.  Until then, we're stuck with low prices and low demand.  I don't see this cycle breaking any time soon. 

[roquevalente]

Dear Ron, overall speaking you are right but the German economy is growing and employees enjoyed even a 4% raise in their sallary. Then Germany is the powerhouse of Europe and also dictates the Euro discipline. So I think that Europe is not that bad, not thinking about Greece and Spain...

[sealark37]

If we are waiting on the U.S. consumer to open his purse and get things going again, we are going to be disappointed.  The table has been set for currency inflation to pick the pockets of the consumer for the foreseeable future.  Those who have ideas for making a profit are being harassed and taxed into submission by the local, state, and federal governments.  Those who would provide the brains and labor for these enterprises are being discouraged by faulty government policies.  The road back to economic health begins when the small operator comes up with a way to overcome these obstacles.  Just my take.  Regards, Clark