| Report from North America      PEFC demands that LEED include certificationsystems other than FSC
 The Programme for the Endorsement of Forest
 Certification (PEFC) has joined US-based forest
 certification systems in their call for certification systems
 other than the Forest Stewardship Council (FSC) to be
 included in LEED.
 
 The green building rating and certification programme
 LEED (Leadership in Energy and Environmental Design)
 has grown tremendously in recent years in both the US
 and Canada. The LEED Certified Wood Credit has been
 undergoing a process of revision for about two years. At
 the centre of this process is the USGBC forest certification
 benchmark that, if the revision is approved, will be used to
 judge which forest certification systems are worthy of
 recognition under the LEED Certified Wood Credit.
 
 The PEFC argues that by recognizing only FSC-certified
 wood, LEED does not appreciate the wider benefits of
 building with wood. More than two thirds of the world’s
 certified forests are PEFC-certified. National standards
 organisations from Australia, Canada, Denmark, Finland,
 Germany, Ireland, Italy, Malaysia, the Slovak Republic,
 Spain and the UK have joined the PEFC umbrella
 organisation’s call.
 
 Remodelling spending to increase by the end of 2010
 The Joint Centre for Housing Studies at Harvard
 University released the Leading Indicator of Remodeling
 Activity forecast until the first quarter of 2011. Spending
 is expected to grow by 5% on an annual basis in the last
 quarter of 2010 and by 12% in the first quarter of next
 year.
  
 US tropical timber importsTotal US imports of tropical hardwood lumber in the
 January to May period this year was nearly the same as in
 2009 (+1%). There has been no significant recovery since
 the downturn in imports in 2008 and 2009, except in a few
 species. Red meranti, jatoba and teak all posted large gains
 compared to the same time period last year. Imports of
 balsa from Ecuador, acajou d’Afrique and ipe were also
 higher than in year-to-date May 2009.
 
 There has also been little change in hardwood moulding
 imports from 2009. The US imported US$71 million in
 year-to-date May 2010, 4% less than in the same period
 last year. Both jatoba and ipe moulding imports from
 Brazil remained below 2009 values at US$9.5 million (-
 23%) and US$2.1 million (-25%), respectively. Cumaru
 moulding imports from Brazil were down at US$1.9
 million, a decline of 8% from last year. Cumaru moulding
 imports from Peru continued increasing, totalling US$1.2
 year-to-date May 2010.
 
 January to May 2010 imports of hardwood flooring were
 60% below the same period in 2009. The largest drop has
 been in imports from China, down 79%. Hardwood
 flooring imports from Brazil were US$959,000 (-26%),
 while imports from Malaysia were US$868,000 (-31%).
 Indonesian flooring exports increased to US$226,000 by
 May 2010, up 38%.
  
 Market trendsHardwood demand from flooring producers remains
 strong. Markets are relatively robust for a range of
 products: residential flooring, sport floors and truck bed
 floors. For millwork and moulding manufacturers business
 continues to be slow. Especially demand for high-end
 architectural millwork has not recovered since the
 recession.
 
 In general, many US customers tend to replace more
 pricey hardwoods with less expensive alternatives, which
 is affecting demand for tropical species such as mahogany.
 However, demand for tropical timber traded in Euro
 makes an exception, given the depreciation of the Euro
 against the US dollar.
 
 There has been little movement in prices since June. Price
 increases for ipe seem to have slowed for the time being,
 but European demand for ipe remains high and supplies
 are thin.
  
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