Latest prices for Brazilian logs, sawnwood and plywood as of 16-31 August, 2019.
| Brazilian logs, mill yard, domestic | US$ per m3 | ||
| Ipê | 210⇑ | ||
| Jatoba | 117⇑ | ||
| Massaranduba | 111⇑ | ||
| Muiracatiara | 111⇑ | ||
| Angelim Vermelho | 110⇑ | ||
| Mixed redwood and white wood | 92⇑ | ||
Continue reading "Brazil: Latest prices for logs, sawnwood and plywood"
Large volumes of storm and insect damaged trees in Germany have resulted in an oversupply of logs and declining sawlog prices in 2018 and 2019. Sawmills have ramped up production, and export sales in the 1Q/19 reached their highest level in almost two years.
Historically, Germany was a net exporter of softwood logs, but since 2009 the country has almost doubled import volumes, while exports have only grown modestly.
In 2018, softwood log imports were slightly higher than they were in 2017, reaching 8.3 million m3 (a new record high). Just two countries, Poland and the Czech Republic, together accounted for almost two-thirds of the import volume to Germany.
Log imports from Norway and Estonia fell substantially in 2018 from 2017, while Poland and the Czech Republic increased their shipments.
The average import price dropped slightly during 2018 in US dollar terms, while it has remained practically unchanged in Euro terms. Polish prices have trended upward, whereas prices of logs from the Czech Republic have moved downward during the past year.
Many central European nations, including Germany, the Czech Republic, Austria, France and Slovakia are hampered by large volumes of storm-damaged trees and beetle-infested forests. As a result, it is very likely that Germany will reverse its pattern and become a net log exporter again in 2019. During the first four months of 2019, export volumes were up 61% as compared to the same period of 2018.
The oversupply of logs in Germany is most likely to result in a continuation of the downward trend for log prices in the country. Prices for spruce sawlogs have declined by about 13% from the 1Q/18 to the 1Q/19. In Euro terms, current price levels are at their lowest since 2009. In US dollar terms, log prices have declined to a level last seen 14 years ago. With plentiful wood raw-material and more competitive costs for logs, German sawmills have increased production levels, and expanded export sales. In the 1Q/19, Germany exported 10% more lumber than in the 1Q/18, reaching the highest quarterly export volume in two years.
With the expected reduction in log costs for the sawmill sector, there will continue to be opportunities for the industry to further increase lumber exports in the coming year.
Tolko announced that it is implementing a flexible operating footprint at its Soda Creek and Armstrong stud lumber mills. This change will reduce the company’s operating stud capacity by 20%.
Vice President, Solid Wood, Troy Connolly says the decision is a result of high log costs in B.C. and weak market conditions.
“The continued and increasing pressures on log delivery costs in B.C. have eroded our competitiveness. This, in addition to continued weak markets, means we must take immediate and responsible action to ensure our long-term stability in B.C. We are moving to a flexible operating footprint starting next week. We will continue to monitor our cost competitiveness regularly to determine if further downtime is required, ” Mr. Connolly said.
Earlier this month, Tolko announced that it will curtail its Kelowna operations for an indeterminate period, due to continued high log costs and poor North American market conditions.
About Tolko:
Tolko is a leading manufacturer of a wide range of forest products for customers around the world, including lumber, plywood, veneer, oriented strand board, co-products, biomass power, and a growing number of specialty wood products.
The recent performance of the Finnish pine market is unremarkable and the market is weak.
Some Chinese merchants have reported that although the traditional peak season has arrived, the downstream furniture market has not recovered, and the Finnish pine market has been blocked, and thus the market is weak. At present, the Finnish pine 2.1-6m long and 2-5cm thick, and the SF grade has a price of 2300-2500 yuan/m3 (EUR 293-318/m3).
| Product name | Specification | Price |
| Finnish pine | Length 2.1-6m, thickness 2-5cm, SF grade | 2300-2500 yuan / cubic meter |
However, in the first half of the year, Finnish exports of pine lumber to China recorded a significant increase. From January to June 2019, Finland exported 296,348 m3, a 407% rise as compared to the same period of last year.
Compared to historical trends, this week’s WSPF KD 2×4 #2&Btr price is up +$11 relative to the one-year rolling average price of U.S. $365 mfbm. This price is down -$71, or -16%, relative to the two-year rolling average price of $447.
Studs producers in British Columbia noted that sales of WSPF studs market wasn’t quite as crazy as that of dimension, but late-September stud production order files prevailed.
There was a lot of new inquiry for WSPF producers in Canada last week, especially after West Fraser announced Monday that it will begin variable operating schedules at five of the company’s B.C. sawmills, resulting in an estimated reduction of its current capacity in the province by 15-25 per cent. The announcement is the latest in a barrage of curtailments and closures in 2019 due to weak markets and pricing. Sawmill order files now stretched into the week of September 30th on most items.
Eastern Canadian lumber purveyors reported scurrying activity among buyers, following another batch of curtailment announcements out West. Secondary suppliers continued to get more attention from customers, due to quicker shipment and marginally lower prices. However, sawmills also got more business each day as distributers and wholesalers ran lower on volume later in the week. Producers extended their order files into late September, with a few almost into October.
Source: Madison Lumber Reporter
Over the past eight months of this year, the Russian domestic timber industry has been showing steady growth in almost all areas of production. So, the volume of lumber production reached the figure of 20.2 million cubic meters- almost 16% higher than the result for January-August 2018.
In the segment of wood panels, positive dynamics was also reported. Industrial production of plywood and other similar materials on an annualized basis increased by 6% to 2.8 million cubic meters. m, chipboard - by 6.7% (6.6 million cubic meters), fiberboard - by 7% (453 million sq. m).
Significant growth was also recorded in domestic pellet production. From January to August, about 1.07 million tons of wood pellets were produced from wood waste in Russia, which is almost 21% higher than the result shown for the first 8 months of the previous year.
As for pulp and paper production there are some mixed results. The volume of pulpwood decreased by 3.5% year on year and amounted to 5.5 million tons, while the production of paper and cardboard products remained at about last year's level - 6 million tons or + 0.6% . At the same time, the output of corrugated paper and corrugated cardboard increased by 2.1% (3.7 billion square meters), and wallpaper in rolls - by 12.9% (100 million conventional units).
The largest decline was noted in the industrial production of windows and window frames made of wood - over the reporting period, 308 thousand square meters of this product were produced which is 21.1% lower than in January-August last year. At the same time, the production of wooden doors, frames and thresholds, on the contrary, increased - 8.4 million square meters or + 8% to last year’s result.
Prices for Ghana's exported wood products are the following between 16-31 August 2019: Continue reading "Ghana: Latest prices for exported wood products"
China’s log imports in the first half of 2019 totalled 29.56 million cubic metres valued at US$5 billion, a year on year decline of 2% in volume and 14% in value. The average price for imported logs was US$169 per cubic metre, a year on year drop of 12%. Continue reading "China: Sharp drop in import prices of softwood logs"
Over the next four years, one of the leaders in the forest industry in the Far East, the RFP Group, intends to double its lumber production. These plans were voiced by the CEO of the holding Dmitry Valtfogel during a discussion at the Eastern Economic Forum, which had taken place this month in Vladivostok.
According to the head of the RFP Group, in the coming years, the company will continue to implement a program to increase the output of lumber and peeled veneer, so that by 2023 it will double its production. At the same time, in 2018, the enterprises of the group procured a total of 1.8 million cubic meters of roundwood. Of these, about 50% were processed by the company's own facilities into value-added products.
“Last year we produced a record volume of veneer - 217 thousand cubic meters. Also, the new lumber production capacities, which were opened in 2017 during the World Economic Forum by the President of the country, were gradually loaded with raw materials, ”said Dmitry Valtfogel.
The RFP Group CEO also noted that the lion's share of the group’s finished products is exported to the nearest Asian countries due to their geographically close location to the Far Eastern Federal District. At the same time, the company is actively exploring options for entering new markets, in particular, in India, where in the future it is possible to sell lumber and veneer if prices and demand reach a sufficient level.
Another promising area for the RFP Group is pellets. Next year, the holding plans to launch the first facilities for the production of this type of product. The estimated production volume will be 100 thousand tons of pellets per year, with the possibility of increasing to 135 thousand tons per year. In parallel, a project is being developed for the construction of a second enterprise, the capacity of which will be 70 thousand tons of pellets per year.
The pellet price in Germany rose by 1.4% in September compared to the previous month. One tonne of pellets costs an average of EUR 242.10 (purchase quantity 6 t). Continue reading "Germany: Pellet prices continue to rise in September"
Latest prices for Indian teak, plywood and sawnwood - 16-31 August 2019
Plantation teak prices
Serious efforts are being made by importers’ to get the government to ease the advance payment conditions for GST. The timber sector is not the only one affected adversely by the GST implementation and in some other sector industrial action has been taken to draw attention to
the issue.
The rupee is slipping against the US dollar and dropped to Rs.71, per US dollar, the year’s lowest. A firm dollar, weak domestic equity markets and asset outflows from India as the super-rich move money to avoid the recent tax hike weakened the rupee.
C&F prices for teak imports continue within the same range as reported previously.
Continue reading "India: latest prices for imported wood products"
Georgia-Pacific is investing $70 million for upgrades to its plywood and lumber operations in Gurdon, Arkansas.
Georgia-Pacific bought the plant in 2006 from International Paper Co., which built it in 1979. That $237 million deal also included two other plywood and lumber complexes in Camden, Texas, and Springhill, La.; a plywood mill in Corrigan, Texas; and an engineered wood products mill in Thorsby, Ala.
Of the 2,400 workers at the five plants at the time, 650 were at the Gurdon plant, Georgia-Pacific said. Gurdon, in Clark County, has about 2,100 residents.
The $70 million investment announced Wednesday includes installation of an advanced merchandiser that determines best end-product use, new panel assembly stations, an upgraded power plant, and software and security enhancements. Work will be completed in 2020.
In 2016, the company completed a $40 million upgrade at the Gurdon mill, increasing production capacity by 60%, Georgia-Pacific said at the time.
Including the $70 million investment, Georgia-Pacific has spent more than $645 million in the past five years on its operations across Arkansas, the company said. Georgia-Pacific has 2,310 employees in Arkansas, with annual wages and benefits totaling $180 million, in Gurdon, Fordyce, Crossett and Fort Smith.
In June, Georgia-Pacific announced that 655 workers in Crossett and Hope would lose their jobs in the next few months.
Weyerhaeuser Company announced an agreement to sell its 555,000 acres of Michigan timberlands to Lyme Great Lakes Holding LLC, an affiliate of The Lyme Timber Company LP, for $300 million in cash.
The company expects to recognize a gain on the sale and anticipates no tax liability in conjunction with the transaction.
"This transaction in our Northern region encompasses a diverse mix of hardwood and softwood acres and is part of our ongoing effort to strategically optimize our timberlands portfolio," said Devin W. Stockfish, president and chief executive officer of Weyerhaeuser. "Lyme will also welcome our exceptional team of highly skilled employees."
"Weyerhaeuser's Michigan timberlands have been managed for decades by an expert team of professionals, and we look forward to working with them," said Jim Hourdequin, managing director and chief executive officer of The Lyme Timber Company LP. "We're excited to be investing in a region known for the quality of its hardwood timberland, mill capacity, and logging and trucking infrastructure."
The transaction is subject to customary closing conditions and is expected to close in the fourth quarter of 2019.
Demand for lumber in China, the United Kingdom, Egypt and the Netherlands increased this year despite a slowdown in the global economy. Global softwood lumber trade was up just over five percent year-over-year during the first half of 2019.
Of the major importing countries in the world, only Japan and Germany have experienced major declines in imports so far this year. Germany’s lumber imports have fallen 6.1%, while exports have gone up 9.2%. German net exports have increased from approximately 1.5 million m3 the first six months of 2018 to two million m3 during the same period in 2019. Continue reading "Global softwood lumber trade unexpectedly rises 5% in H1/2019; with record imports in China"
British Columbia's forestry industry is going through a deeper crisis, led mostly by high log prices and low timber supply. This has seriously affected the communities in the province and lowered the economy.
According to CTV News, many companies have announced shutdowns or curtailments in more than two dozen mills in the province, putting hundreds out of work and slashing economic growth predictions. Advocates are calling for urgent government action to stem the bleeding.
"Something needs to change immediately or these small communities that don't have other employers are going to wither and die," said Marty Gibbons, president of United Steelworkers Local 1-417, based in Kamloops, B.C.
Interior communities, including Merritt, Clearwater, Vavenby and Clinton, have already been forced to give up to hundreds of forestry workers, while the largest driving factor is the province's complex stumpage system, that results in high fees.
"These are private businesses. If they can't turn a profit, there's no reason for them to run. Right now, it's not the markets that are the issue. It's the cost of the logs," Gibbons added.
Stumpage is a fee businesses pay when they harvest timber from Crown land. The B.C. government calculates stumpage annually, so the system is less responsive than in Alberta, where monthly adjustments are made, he further explained.
The Forests Ministry said stumpage fees are based on market demand and the current rates reflect the scarcity of timber supply that has resulted from the mountain pine beetle outbreak and been exacerbated by several severe fire seasons. Intervention in the stumpage system would weaken the legal case in the appeals of the duties imposed by the United States on softwood lumber from Canada, the ministry said in a statement, CTV News reported.
"It is well-known that any interference in B.C.'s market-based timber pricing system would lead to an increase in softwood lumber duties levied by the U.S.," it said.
Because most of the forest land in British Columbia is publicly owned, companies have long-term tenure rights and the government charges them stumpage to harvest trees. In contrast, most land in the U.S. is private and companies face costs associated with replanting.
"That's what the stumpage fee is all about," explained Ken Peacock, chief economist of the Business Council of B.C. "It tries to equate, if it was privately owned, what the cost would be to operate and manage and reforest the land."
Peacock added the high cost of logs is the major cause of the industry's decline in B.C. He also blamed the mountain pine beetle and record-breaking 2017 and 2018 fire seasons for decimating supply. The policies of Premier John Horgan's government are also breeding uncertainty, Peacock argued, according to CTV News.
At the moment, the Canadian government is working on developing a caribou habitat protection plan as to restrict the access to northern timber. It is also promised to implement the United Nations Declaration on the Rights of Indigenous Peoples without explaining how companies are meant to fulfill its requirement of "free, prior and informed consent" from First Nations.
As Peacock also explained, "the picture here in B.C. is we are a very high cost jurisdiction. It's actually less costly to operate in Alberta and companies can make a profit milling lumber and producing two-by-fours in Alberta." On top of all that, market conditions in North America are softening.
Forestry is the no. 1 engine that drives B.C.'s economy with nearly $15 billion in annual exports, representing one-third of the province's international merchandise exports and the largest segment by far, said Peacock.
The Business Council of B.C. just trimmed its 2019 economic forecast in part because of the forestry downturn, from 2.2 to 2 per cent growth, he said. The B.C. government also just cut its forecast to 1.7 per cent, citing mill closures in part. The Forests Ministry said the challenges the province is facing have been in the making for many years and the previous Liberal government ignored them and failed to help the sector and communities adapt, CTV News reported.
This index contains the most update prices of logs and lumbers from the two major timber distribution markets in China: Shanghai Furen Timber Market and Guangzhou Yuzhu Timber Market.
Prices in the Guangdong Yuzhu Timber Market
Exchange rate: 1 Euro=7.83,10 RMB; 1 US$=7.07 RMB (September 16, 2019)
Date: September 3rd, 2019
| 1. Logs | ||||||||
| Origin | Species | Diameter |
Prices range
(Euro/m3) |
Prices range
(RMB/m3) |
September Price |
Change from August | ||
|
Min
|
Max
|
Min
|
Max
|
Range | Trend | |||
| Malaysia, Indonesia | Merbau | d>100cm | 641.98 | 666.67 | 5200 | 5400 | 5200/5400 | ► |
| 80<99cm | 555.56 | 567.90 | 4500 | 4600 | 4500/4600 | ► | ||
| d<79cm | 432.10 | 493.83 | 3500 | 4000 | 3500/4000 | ► | ||
| Balau | d>100cm | 654.32 | 679.01 | 5300 | 5500 | 5300/5500 | ► | |
| 80<99cm | 567.90 | 592.59 | 4600 | 4800 | 4600/4800 | ► | ||
| 60<d<79cm | 530.86 | 555.56 | 4300 | 4500 | 4300/4500 | ▲ | ||
| d<60cm | 444.44 | 469.14 | 3600 | 3800 | 3500/3800 | ▲ | ||
| Kapur | d>80cm | 345.68 | 444.44 | 2800 | 3600 | 2800/3600 | ► | |
| d<79cm | 345.68 | 333.33 | 2600 | 2700 | 2600/2700 | ► | ||
| Ulin | Assorted | 802.47 | 6500 | 6500 | ► | |||
| Lauan | d>60cm | 246.91 | 271.60 | 2000 | 2200 | 2000/2200 | ► | |
| 50<60cm | 222.22 | 246.91 | 1800 | 2000 | 1800/2000 | ► | ||
| Mengaris | d>60cm | 246.91 | 259.26 | 2000 | 2100 | 2000/2100 | ► | |
| 50<d<60cm | 209.88 | 234.57 | 1700 | 1900 | 1700/1900 | ► | ||
| Northeastern China,Russia | Ash | d>35cm | 530.86 | 543.21 | 4300 | 4400 | 4200/4300 | ► |
| Basswood | d>36cm | 444.44 | 469.14 | 3600 | 3800 | 3500/3800 | ► | |
| Elm | d=36cm | 345.68 | 444.44 | 2800 | 3600 | 2800/3600 | ► | |
| Chinese walnut | d=36cm | 345.68 | 518.52 | 2800 | 4200 | 2800/4200 | ► | |
| Chinese oak | d>36cm | 518.52 | 679.01 | 4200 | 5500 | 4000/5500 | ► | |
| Mongolian scotch pine | d>36cm | 234.57 | 271.60 | 1900 | 2200 | 2000/2200 | ▼ | |
| Larch | d>36cm | 191.36 | 234.57 | 1550 | 1900 | 1550/1900 | ► | |
| Maple | d>36cm | 333.33 | 376.54 | 2700 | 3050 | 2700/3050 | ► | |
| Poplar | d>36cm | 206.70 | 240.74 | 1650 | 1950 | 1650/1950 | ► | |
|
Africa
|
Big Wenge | Assorted | 592.59 | 679.01 | 4800 | 5500 | 4800/5500 | ► |
| Okume | Assorted | 271.60 | 308.64 | 2200 | 2500 | 2200/2500 | ► | |
| Okan | Assorted | 419.75 | 481.48 | 3400 | 3900 | 3400/3800 | ► | |
| African blackwood | Assorted | 987.65 | 1851.85 | 8000 | 15000 | 8000/15000 | ► | |
| Adoukdeafric | d>80cm | 469.14 | 481.48 | 3800 | 3900 | 3800/3900 | ► | |
| d<79cm | 432.10 | 456.79 | 3500 | 3700 | 3500/3700 | ► | ||
| Umbila | d=60cm | 555.56 | 4500 | 4500 | ► | |||
| Ambila | Assorted | 493.83 | 679.01 | 4000 | 5500 | 4000/5500 | ▼ | |
| Kevozingo | d>80cm | 1604.94 | 1851.85 | 13000 | 15000 | 13000/15000 | ► | |
| Ekki | d>100cm | 444.44 | 3600 | 3200 | ▲ | |||
| d=50-99cm | 345.68 | 358.02 | 2800 | 2900 | 2800/2900 | ► | ||
| Monzo | d=40cm | 703.70 | 740.74 | 5700 | 6000 | 5700/6000 | ► | |
| Myanmar | Teak | 30<d<60cm | 1049.38 | 1481.48 | 8500 | 12000 | 8500/12000 | ► |
| France | Red oak | d>30cm | 308.64 | 320.99 | 2500 | 2600 | 2500/2600 | ► |
| S.America | Purple Heart | d>60cm | 419.75 | 456.79 | 3400 | 3700 | 3100/3300 | ▲ |
| 50<d<60cm | 345.68 | 358.02 | 2800 | 2900 | 2600/2900 | ▲ | ||
| Barataballi | d>60cm | 283.95 | 2300 | 2300 | ► | |||
| Wamara | d>40cm | 567.90 | 580.25 | 4600 | 4700 | 4700/4800 | ▲ | |
| Ipe | d>40cm | 469.14 | 555.56 | 3800 | 4500 | 3800/4500 | ► | |
| Green heart | d>40cm | 283.95 | 302.47 | 2300 | 2450 | 2300/2450 | ► | |
| Fava-Amargosa | d>100cm | 333.33 | 370.37 | 2700 | 3000 | 2500/2800 | ► | |
| Palosanto | d>30cm | 987.65 | 1012.35 | 8000 | 8200 | 8000/8200 | ► | |
| King wood | Assorted(unit:ton) | 5925.93 | 6419.75 | 48000 | 52000 | 48000/55000 | ▼ | |
| 2. Sawntimber | ||||||||
| Places | Product name |
Grades | Prices range (Euro/m3) |
Prices range (RMB/m3) |
September Price |
Change from August |
||
| Min | Max | Min | Max | Range | Trend | |||
| North America | Cherry | FAS-2" | 1234.57 | 1580.25 | 10000 | 12800 | 10000/12800 | ► |
| FAS-1" | 1111.11 | 1358.02 | 9000 | 11000 | 9000/11000 | ► | ||
| White Ash | A | 740.74 | 864.20 | 6000 | 7000 | 5500/7000 | ▲ | |
| Black Walnut | FAS-2" | 1728.40 | 2098.77 | 14000 | 17000 | 14000/16000 | ▲ | |
| FAS-1" | 1234.57 | 1604.94 | 10000 | 13000 | 10000/13000 | ► | ||
| AB(1-2") | 864.20 | 925.93 | 7000 | 7500 | 7000/7500 | ► | ||
| Hard Maple | A | 1111.11 | 1234.57 | 9000 | 10000 | 9000/9500 | ▲ | |
| Soft Maple | A | 925.93 | 987.65 | 7500 | 8000 | 7500/8000 | ► | |
| White Oak | A | 1111.11 | 1604.94 | 9000 | 13000 | 9000/13000 | ► | |
| Red Oak | A | 888.89 | 1111.11 | 7200 | 9000 | 6800/9000 | ▲ | |
| White Kageki | A | 987.65 | 1111.11 | 8000 | 9000 | 8000/9000 | ► | |
| Pine Finaland | A | 358.02 | 2900 | 2900 | ► | |||
| Africa | Makore | A (imported with original packing) | 901.23 | 7300 | 7300 | ► | ||
| Zingana | A | 1358.02 | 1604.94 | 11000 | 13000 | 12000/15000 | ▼ | |
| Awora | A | 802.47 | 888.89 | 6500 | 7200 | 6000/7000 | ▲ | |
| Mezali (big) | A | 1604.94 | 1851.85 | 13000 | 15000 | 13000/15000 | ► | |
| Mezali (small) | A | 1481.48 | 1604.94 | 12000 | 13000 | 12000/13000 | ► | |
| African Walnut | A | 1172.84 | 1234.57 | 9500 | 10000 | 9500/10000 | ► | |
| Sapelli | A (imported with original packing) | 962.96 | 1049.38 | 7800 | 8500 | 7500/8500 | ▲ | |
| Okume | A | 555.56 | 617.28 | 4500 | 5000 | 4500/5000 | ► | |
| Ebiara | A | 925.93 | 987.65 | 7500 | 8000 | 7500/8000 | ► | |
| Bubinga | A | 1975.31 | 2222.22 | 16000 | 18000 | 16000/18000 | ► | |
| Acajou | A (imported with original packing) | 925.93 | 987.65 | 7500 | 8000 | 7200/7600 | ▲ | |
| Adouk d'afric | A | 777.78 | 864.20 | 6300 | 7000 | 6300/7000 | ► | |
| Samba | A | 617.28 | 654.32 | 5000 | 5300 | 5000/5300 | ► | |
| Teak | A | 1185.19 | 9600 | 9600 | ► | |||
| Europe | European Maple | A | 1234.57 | 1296.30 | 10000 | 10500 | 10000/10500 | ► |
| Beech | Super Class | 654.32 | 5300 | 5300 | ► | |||
| Southeast Asia | Nyatoh | No knot | 493.83 | 543.21 | 4000 | 4400 | 4000/4400 | ► |
| Pontianak wood | Super Class | 1089.59 | 1210.65 | 9000 | 10000 | 9000/10000 | ► | |
| Merbau | Super class | 1049.38 | 1135.80 | 8500 | 9200 | 8600/9500 | ▼ | |
| Lauan | Super class | 567.90 | 592.59 | 4600 | 4800 | 4600/4800 | ► | |
| Camphorwood | Super class | 617.28 | 604.94 | 4500 | 4900 | 5500/6000 | ▼ | |
| Camphorwood | A | 617.28 | 679.01 | 5000 | 5500 | 5000/5400 | ▼ | |
| Ebony | Super class | 1975.31 | 16000 | 16000 | ► | |||
| Ramin | No knot | 740.74 | 814.81 | 6000 | 6600 | 6000/6600 | ► | |
Price information in Shanghai Furen Timber Market - September 2019
| 1. Imported sawntimber | ||||||||||
| Standard name | Local name | Grade | Spec./ Grades |
Origin | Prices range (Euro/m3) |
Price range (RMB/m3) | September Price |
Change from August | ||
|
Min
|
Max
|
Min
|
Max
|
Range | Trend | |||||
| Okume | Okume | All spcifications | A | Africa | 567.90 | 592.59 | 4600 | 4800 | 4600/4800 | ► |
| Ebiara | Ebiara | All spcifications | A | 925.93 | 987.65 | 7500 | 8000 | 7200/8000 | ▲ | |
| Sapeli | Sapeli | All spcifications | A | 888.89 | 1061.73 | 7200 | 8600 | 7500/8000 | ► | |
| Zingana | Zingana | All spcifications | A | 1111.11 | 1358.02 | 9000 | 11000 | 8000/11000 | ▲ | |
| Bubinga | Bubinga | A (high mountains) | A | Africa | 1851.85 | 2037.04 | 15000 | 16500 | 15000/16000 | ► |
| A (Zambia) | 1172.84 | 1234.57 | 9500 | 10000 | 9500/10000 | ► | ||||
| African Mahogany | African Mahogany | All spcifications | A | Africa | 740.74 | 925.93 | 6000 | 7500 | 6000/7000 | ► |
| Makore | Makore | All spcifications | A | 1049.38 | 1148.15 | 8500 | 9300 | 8500/9300 | ► | |
| Ayous Wawa | Wawa | A | 454.79 | 506.17 | 3700 | 4100 | 3700/4100 | ► | ||
| Ayous | A | 530.86 | 580.25 | 4300 | 4700 | 4200/4600 | ▲ | |||
| Beli | Beli | All spcifications | A | 864.20 | 913.58 | 7000 | 7400 | 7200/8000 | ▼ | |
| Oak | Red oak | 2" | FAS | North America | 987.65 | 1037.04 | 8000 | 8400 | 8000/8200 | ▲ |
| 1" | FAS | 765.43 | 864.20 | 6200 | 7000 | 6800/7100 | ▼ | |||
| 2" | 1 com | 617.28 | 691.36 | 5000 | 5600 | 5000/6000 | ▼ | |||
| 1" | 1 com | 740.74 | 802.47 | 6000 | 6500 | 5200/6500 | ▲ | |||
| White oak | 2" | FAS | 925.93 | 1049.38 | 7500 | 8500 | 7500/8500 | ► | ||
| 1" | FAS | 864.20 | 962.96 | 7000 | 7800 | 7000/7800 | ► | |||
| 2" | 1 com | 802.47 | 864.20 | 6500 | 7000 | 6500/7000 | ► | |||
| 1" | 1 com | 716.05 | 802.47 | 5800 | 6500 | 5800/6500 | ► | |||
| White Ash | White Ash | 2" | FAS | 802.47 | 925.93 | 6500 | 7500 | 6500/7200 | ▲ | |
| 1" | FAS | 679.01 | 740.74 | 5500 | 6000 | 5500/6000 | ► | |||
| 2" | 1 com | 679.01 | 753.09 | 5500 | 6100 | 5500/6100 | ► | |||
| 1" | 1 com | 580.25 | 625.63 | 4700 | 5100 | 4700/5100 | ► | |||
| Hard Maple | Hard Maple | 2" | FAS | 1209.88 | 1296.30 | 9800 | 10500 | 9800/10500 | ► | |
| 1" | FAS | 901.23 | 962.96 | 7300 | 7800 | 7300/7800 | ► | |||
| Soft Maple | Soft Maple | 1" | 1 com | 765.43 | 802.47 | 6200 | 6500 | 6200/6500 | ► | |
| Cherry | Cherry | 2" | FAS | 1172.84 | 1358.02 | 9500 | 11000 | 9500/11000 | ► | |
| 1" | 938.27 | 962.96 | 7600 | 7800 | 7600/7800 | ► | ||||
| Black Walnut | Black Walnut | 2" | FAS | 1851.85 | 2345.68 | 15000 | 19000 | 15000/17000 | ▲ | |
| 1" | 1358.02 | 1728.40 | 11000 | 14000 | 11000/13000 | ▲ | ||||
| Red Alder | Red Alder | JB | 345.68 | 358.02 | 2800 | 2900 | 2800/2900 | ► | ||
| CUS | 481.48 | 506.17 | 3900 | 4100 | 3900/4100 | ► | ||||
| SUP | 617.28 | 641.98 | 5000 | 5200 | 5000/5200 | ► | ||||
| Yellow Poplar | Yellow Poplar | 1" | FAS | 493.83 | 518.52 | 4000 | 4200 | 4000/4200 | ► | |
| 2" | FAS | 567.90 | 592.59 | 4600 | 4800 | 4600/4800 | ► | |||
| Yellow Meranti | Yellow Meranti | All specifications | A | Southeast Asia | 456.79 | 481.48 | 3700 | 3900 | 3700/3900 | ► |
| Red Meranti | Red Meranti | All specifications | A | 481.48 | 506.17 | 3900 | 4100 | 3900/4100 | ► | |
| Champaka | Golden teak | All specifications | Assorted | Yunnan/ Mynmar |
802.47 | 925.93 | 6500 | 7500 | 6500/7500 | ► |
| Merbau | Merbau | 2" | Assorted | Indonesia | 938.27 | 1172.84 | 7600 | 9500 | 7800/9500 | ▼ |
| Beech | Beech | AA | Europe | 530.86 | 580.25 | 4300 | 4700 | 3800/4300 | ▲ | |
| heartwood | 469.14 | 518.52 | 3800 | 4200 | 3800/4200 | ► | ||||
| Ash | Ash | All specifications | A | Russia | 617.28 | 740.74 | 5000 | 6000 | 5000/6000 | ► |
| Elmwood | Elmwood | A | 555.56 | 654.32 | 4500 | 5300 | 4500/5300 | ► | ||
ENboard Co. Ltd., the new joint venture of the furniture manufacturer Eidai Co., Ltd. and Japan Novopan Industrial Company Ltd., has agreed to buy a new wood-based panel plant for the local market from Siempelkamp.
The order for a new production plant at the foot of Japan's famous landmark, Mount Fuji, ranges from wood preparation to final production including the overall planning of the plant.
Japan Novopan Industrial Company Ltd recently entered into a joint venture with Eidai Co., Ltd. and established the new company "ENboard".=
Japanese Novopan bought a complete plant from Siempelkamp 10 years ago. The today order includes not only the overall plant planning, but also all core machines for wood processing technology, energy generation and drying as well as classification and gluing systems. Siempelkamp also supplies the forming and press lines as well as the board handling systems. The heart of the new plant is a 7 ft x 47.1 m ContiRoll® Generation 9 press including a so-called PMDI package (PMDI=polymers of diphenylmethane diisocyanates).
The plant is to be operated mainly with recycled wood and will mainly serve the local market with formaldehyde-free bonded, particularly heavy chipboard. Japan Novopan uses the proven ContiRoll® technology with adapted pressure curve as well as the indirect drying technology from Büttner.
The new plant will be built in a prominent position in the Shizuoka prefecture at the foot of Fuji Mountain, Japan's World Heritage Site and landmark.
The EU countries have increased their exports by almost 50% this year, as the country's economy is overall improving and there is a strong demand in the country’s furniture manufacturing industry.
According to the latest Eurostat figures, in January-June 2019, EU's softwood lumber exports to Egypt increased by 46% over the same period of 2018.
Finland has exported most of the total European volume, with a share of 50% of all European exports, followed by Sweden and Latvia.
Finland and Sweden accounted for more than 91% of the overall EU exports. Year-on-year, Finnish exports increased by 36%, while Swedish softwood lumber shipments to Egypt rose by 65% (See table below).
Market prospects for softwood lumber in Egypt
One of the sectors which shows potential is the furniture industry centred around the triangle of Damietta, Alexandria, and Cairo. The furniture industry consumes huge volumes of solid wood, importing substantial volumes of beech and Spruce-Pine-Fir from Romania as well as oak from the Balkan states. Egypt is the largest market for softwood lumber in the Middle East and North Africa. Lumber demand is set to rise sharply over the coming years as its economy improves and several large-scale urban development projects are planned in the near future.
The country relies entirely on imported softwoods and buyers are seeking alternative sources owing to the rising cost of imported hardwoods. EU softwoods are the ideal alternative and interest among buyers is rising. The timber trade and furniture and joinery manufacturers are accustomed to working with European and Russian material.
While economic problems remain, the long-term outlook for Egypt - and demand for imported softwood lumber - is bright. Egypt’s growing, young population will bolster economic growth over the coming years, the construction market is recovering from the floatation of the Egyptian Pound, tourism is slowly recovering, and the Egyptian government is investing heavily in infrastructure. A government initiative to build one million housing units as well as a multi-billion-dollar initiative for a new administrative capital to seat the national government is expected to drive growing demand for softwood lumber. Egypt imported 4.4 million cubic meters of softwood lumber in 2017, but imports fell in 2018 owing to the devaluation of the Egyptian Pound, which has lost nearly 50 percent of its value against the dollar since 2011. Imports are expected to climb to 4 million cubic meters in 2019.
Demand in the furniture production sector is also expected to rise over the coming years as the country seeks to become more competitive in that sector. Low-priced European redwood is used for construction - primarily for concrete forming - while U.S. Southern Yellow Pine (SYP) is used for interior joinery, panelling, doors, windows, and flooring.
| EU softwood lumber exports to Egypt | H1/2018 | H1/2019 | Change in % | |||
|
994,110 | 1,443,661 | 45 % | |||
|
539,252 | 730,725 | 36 % | |||
|
360,953 | 594,543 | 65 % | |||
|
73,048 | 81,555 | 12 % | |||
|
3,744 | 10,140 | 171 % | |||
|
1,761 | 8,914 | 406 % | |||
|
15,352 | 17,784 | 16 % | |||
|
2,444 | 6,465 | 165 % | |||
| TOTAL | 996,554 | 1,450,126 | 46 % |
China’s 2019 imports of wood products are projected to stabilize despite a slowing economy and high 2019 domestic stocks. Softwood 2019 imports are forecast up due to competitively priced foreign exports and increased domestic applications for softwoods in furniture manufacturing. Hardwood 2019 imports are projected down due to weak demand from the furniture manufacturing sector and the interior-decoration market.
Growth in China’s wood processing sector is expected to slow with weaker global demand for Chinese products and more stringent environmental regulations. Overall wood products exports from China will likely decline in 2019 due to robust foreign competition and declining U.S. demand, due in part, to additional U.S. tariffs on Chinese wood products. On May 13, 2019, the State Council Tariff Commission (SCTC) announced that the government would administer an exclusion process for the additional tariffs imposed on specific U.S. exports. Three wood products’ (H.S. 44013100, 44013900 and 44032190) tariff lines are included in the first list of applicable products. Exclusions granted will be made publicly available, however, no records have been published at this time.
China’s 2019 imports of wood products are projected to stabilize despite a slowing economy and high 2019 domestic stocks. Growth in China’s wood processing sector is expected to slow with weaker global demand for Chinese products and more stringent environmental regulations. Continue reading "Forecast: China’s 2019 wood imports to stabilize despite a slowing economy and high 2019 domestic stocks"
The growing need in emerging markets for building materials and fuel has spurred Japanese trading houses to expand their forestry operations.
Sumitomo Corp. plans to spend about 25 billion yen (SGD $319 million) on acquiring more pine forest in New Zealand, one of the Asia-Pacific region's major timber exporters, looking to double its acreage by 2021. Continue reading "Japanese forestry giants expand in New Zealand as Asian wood demand grows"
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