IndustryofficialssaythechangepartlyreflectsChina'sresponsetotheU.S.antidumpinginvestigationandthesubsequentpreliminarydutiesonwoodbedroomfurniture,imposedinlateJune.
"ThereisnodoubtthatfurnituretariffshavebeendisruptivetolumberflowstoChina,"saidMarkBarford,presidentofAppalachianHardwoodManufacturersInc.
Henotedthatexportsandoverallbusinessinthehardwoodindustrytypicallydropoffinthefourthquarter,largelycoincidingwiththeonsetofwetandcoldweather.Buttheslowdownthisyearoccurredsoonerthanexpected.
"Alotofwhatisgoingonisapprehensiononthepartof(Chinesewoodbedroom)manufacturers,"saidGeneParker,editorofMemphis,Tenn.-basedtradepublicationHardwoodMarketReport."Theyhadproducedalotoffurniturethathadgoneintowarehouses,and...becamealittleapprehensiveaboutwhattheyshouldbedoingwithproduction."
Chinesemanufacturersalsosoughtoutothersourcesofrawmaterials,particularlyinBrazilandotherpartsofSouthAmerica.
Theeffectonbusinessvariesamonghardwoodproducers,butnoteveryonehassufferedgreatlybecauseoftheshift.
JohnBeard,presidentofE.N.BeardHardwoodsinGreensboro,N.C.,saidhetypicallyshipsabout20containersamonthofmostlypoplartoChina.ThatfellsignificantlyinJuly;inAugustandSeptember,itwaszero.
"There'snodoubttherewasatremendousamountofuncertaintyoutthereintermsofhowmuchthetariffwasgoingtobeandwhomitwasgoingtoaffect,"Beardsaid.
HisbusinesstoChinapickedupinOctoberandnowisbacktonormal.Thankstoheavyvolumeearlythisyear,BeardbelieveshisoverallsalesvolumetoChinawillbelevelthisyear.
ParkersaidthesituationwascompoundedthissummerbecausemanymanufacturerstriedtogetasmuchproductbuiltandshippedbeforepreliminarydutieswereannouncedinlateJune.That,inturn,promptedthemtoholdoffonorderinganymorerawmaterials.
SomeU.S.hardwoodcompanieshaveseenexportsshifttoothercountriessuchasVietnam.
JimmyJones,presidentofNewBern,N.C.-basedJ.E.JonesLumberCo.,saidsixmonthsagohewasshipping100%ofhispoplarproductstoChina.Thatdroppedto50%overthepastthreemonths,withmostoftheremaindergoingtoVietnamandasmallamounttoMalaysia.
"OurtemperatehardwoodsarestillinverygooddemandinAsiabecausetheycan'tgetitanywhereelseintheworld,becauseitdoesn'tgrowlikeitdoeshereanywhereelseintheworld,"Jonessaid.
Hebelieveshisoverallexportswillbeaboutequaltolastyear.
BoththequantityandvalueofhardwoodexportstoVietnamroseeachmonthbetweenMarchandSeptemberexceptinJune,accordingtotheUSDA.ThevaluealsodippedslightlyinSeptember.
NowthattheU.S.governmenthasannouncedfinalduties,manyhopelumberexportstoChinawillstabilize.
"IwouldsaythatmanufacturersinChinacameoutbetterthantheyhadhopedfor,"Beardsaid."Withthatclearpath,theywillcontinuetobuyfromus.Theyliketobuyfromusnotonlyfromapricestandpoint,butbecauseofourreliability." (Thomas Russell)
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