EU Investigates Anti-Dumping Claims on Chinese Hardwood Plywood Imports

The European Commission has launched an anti-dumping investigation into hardwood plywood imports from China following a complaint from the Greenwood Consortium, which represents the EU’s domestic plywood industry. The complaint, filed on August 27, 2024, alleges that Chinese plywood is being sold at artificially low prices, violating fair trade rules and undercutting European manufacturers. Concerns are also growing that these imports may contain Russian wood, which has been banned in the EU since 2022 following Russia’s invasion of Ukraine.

Scope of the Investigation

The investigation targets hardwood plywood excluding bamboo and okoumé, with a ply thickness of no more than 6 mm, classified under HS codes 4412 31, 4412 33, and 4412 34. EU manufacturers claim that these imports benefit from market distortions such as state subsidies, artificially low raw material costs, and energy price interventions, giving Chinese producers an unfair competitive advantage.

Additionally, allegations suggest that Russian hardwood logs are exported to China at reduced prices, processed into plywood, and then re-exported to the EU under Chinese origin—potentially bypassing the EU’s embargo on Russian wood products.

Surge in Chinese Plywood Imports

Data shows a significant rise in Chinese hardwood plywood exports to the EU:

• Between January and August 2024, imports surged by 23% year-on-year, reaching 837,000 m³.
• The total export value increased by 21% to $514 million.
• Average pricing declined by 2.2% to $615 per cubic meter.

Simultaneously, Russia’s hardwood plywood exports to China increased by 74% to 249,000 m³, valued at $125 million, raising concerns about re-exportation into the EU market.

Potential Impact on the EU Market

The European hardwood plywood industry, employing around 10,000 workers across Poland, Finland, France, and the Baltic states, has faced declining sales due to low-cost Chinese imports. In 2023, the EU imported approximately 750,000 m³ of hardwood plywood from China, representing over 50% of total EU hardwood plywood imports and covering 30% of the market.

If the investigation confirms the dumping claims, the EU may impose anti-dumping duties on Chinese plywood imports. The European Commission could introduce provisional measures within 7-8 months, while a final decision on definitive duties may take up to 14 months. To prevent circumvention, all Chinese plywood imports will be registered at EU borders, ensuring that any retroactive tariffs can be applied.

Growing Global Trade Tensions

The EU’s investigation is part of broader efforts to protect domestic industries from unfair competition. Similar trade disputes have emerged worldwide:

• The EU recently imposed tariffs of up to 45% on Chinese electric vehicles, leading to retaliatory measures from China.
• The U.S., Morocco, Turkey, and South Korea have already introduced punitive tariffs on Chinese wood imports.

What This Means for Buyers and Importers

If anti-dumping duties are imposed, EU importers relying on Chinese plywood may face increased costs. Buyers seeking alternative sources should consider compliant and sustainable plywood options to avoid potential disruptions. And Vietnam plywood now is known as a great alternative source for European importers.

At TADEX PLY, we prioritize ethical sourcing and compliance with international regulations. Our high-quality film-faced plywood, birch plywood, eucalyptus plywood is manufactured using sustainably sourced Eucalyptus, Acacia and Styrax wood, ensuring that our products meet EU standards for fair trade and environmental responsibility. And currently, TADEX PLY is one of the leading plywood exporter from Vietnam to EU markets, with various kind of plywood items. Contact us today to explore premium plywood solutions that comply with evolving industry regulations.

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