In contrast the North American trade in sawn hardwoods was forecast to be active. Sawnwood prices have been rising rapidly in the last two years but have slowed in 1999. Demand has been sluggish in the first semester of 1999. There has also been a building up of stocks for particle board leading to a drop in prices. Despite existing overcapacity, further capacity expansions are announced for MDF and particle board in the expectation of future increases in consumption.
Plywood is by far the major panel being exported.
OSB is continuing to expand at a rapid pace and installed capacity reached 1.1 million m3. France is expecting a new mill start up in 2000. Despite the rapid increase in consumption, overcapacity represents a continued problem for the industry. In Canada capacity will increase by 1 million m3. OSB production in North America is forecast to reach new record levels in 1999 to reach 17.6 million m3 in 2000.