Sawnwood Market in the Middle East Lost its Growth Momentum

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 tons), Turkey (816K tons) and Iran (489K tons), 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 tons 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 tons) 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 tons, 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 tons, which was approx. 65% of total exports in 2018. It was distantly followed by Turkey (24K tons), making up a 23% share of total exports. Oman (4,182 tons), Lebanon (3,923 tons) and Saudi Arabia (1,838 tons) 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 ton, 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 ton), while Turkey ($479 per ton) 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 tons, 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 tons 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 tons) and Turkey (832K tons) represented the main importers of sawnwood in 2018, recording approx. 22% and 20% of total imports, respectively. The United Arab Emirates (508K tons) held the next position in the ranking, followed by Iran (489K tons) and Israel (464K tons). All these countries together held approx. 35% share of total imports. The following importers - Lebanon (132K tons), Kuwait (122K tons), Jordan (118K tons), Oman (112K tons), Yemen (106K tons), Qatar (90K tons) and Iraq (81K tons) - 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 ton 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 ton), while Turkey ($269 per ton) 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 Market Intelligence Platform