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Cheaper wood pellets in Germany

Wood pellets in Germany cost € 236.82 / t in June

The price of wood pellets in Germany fell again slightly compared to the previous month of June by 1.73%. The average price currently stands at € 236.82 / t (purchase quantity 6 tons). In July 2018, the average price was € 236.36 / t, and thus remained virtually stable.
The kilo costs 23.68 cents. This is 4.74 cents per kilowatt-hour (kWh) of heat. The price advantage of pellets compared to heating oil is 28.3% and to natural gas 17.6%.
Regional prices (purchase quantity 6 t):
Southern Germany: 235.11 EUR / t
North and East Germany: 241,49 EUR
Central Germany: EUR 236.12 / t
Larger quantities (26 t):
South: 221.34 EUR / t, Central: 220.38 EUR / t, north / east: 225.32 EUR / t (all incl. VAT).

Rising softwood lumber production for U.S. sawmills, while Canadian output drops sharply

Softwood lumber production by U.S. sawmills in the first four months of 2019 was 11.718 billion board ft. (bbf), an increase of 0.9% from 11.616 bbf a year earlier, while Canadian sawmills produced 8.588 bbf of softwood lumber in the first four months, down 8.8% from 9.421 bbf a year earlier

Western U.S. sawmills accounted for 4.797 bbf of the four-month total, down 1.8% from 4.883 bbf a year earlier, while production at southern U.S. sawmills increased, by 3.0% to 6.370 bbf from 6.186 bbf last year.

In April, U.S. sawmills produced 3.044 bbf, a year-over-year increase of 0.6% from 3.025 bbf, and up 7.3% from output In March 2019 of 2.836 bbf.

Western sawmills contributed 1.258 bbf to April’s total, a year-over-year increase of 2.2% from 1.232 bbf, and up 7.1% from the previous month’s volume of 1.175 bbf.

Sawmills in the South contributed 1.642 bbf, down 0.5% from 1.651 bbf a year earlier, but up 7.5% from production of 1.527 bbf in March 2019.

Apparent U.S. softwood lumber consumption advanced 1.9% in the four-month period to 15.968 bbf from 15.676 bbf in the previous year. In April, consumption was 4.387 bbf, a 5.0% increase from last year’s 4.180 bbf, and up 10.1% from consumption in March 2019 of 3.986 bbf.

Canadian softwood lumber production/consumption

Canadian sawmills produced 8.588 bbf of softwood lumber in the first four months, down 8.8% from 9.421 bbf a year earlier. Much of the decline was in British Columbia, where output plunged 16.2% to 3.587 bbf from 4.279 at the same time last year. Production by sawmills East of the Rockies also fell, by 2.7% to 5.001 bbf from 5.142 bbf.

Production in April alone was 2.206 bbf, a year-over-year decline of 9.4% from 2.437 bbf in April 2018, and 4.0% lower than production in March 2019 of 2.299 bbf.

Sawmills in British Columbia contributed 903 million board ft. (mmbf) to Canada’s April production, a drop of 20.3% from 1.134 bbf in April last year. Compared to production in March this year of 958 mmbf, output by mills in British Columbia was down 5.7%.

Sawmills east of the Rockies produced 1.303 bbf in April, level with April 2018 but down 2.8% from 1.340 bbf in the previous month.

Apparent Canadian softwood lumber consumption for the four-month period plunged 16.1% to 2.786 bbf from 3.321 bbf last year. Consumption in April alone was 573 mmbf, down 34.7% from 878 mmbf in April 2018, and 12.8% lower than consumption in March 2019 of 657 mmbf.

Sweden: Sawlog prices on the rise in Q2/2019

Pine logs cost now an average of 472 SEK/m3 (EUR 44.92/m3), while spruce logs SEK 531/m3 (EUR 50.54/m3)

The second quarter of 2019 shows rising sawlog prices in Sweden on a yearly basis. Continue reading "Sweden: Sawlog prices on the rise in Q2/2019"

Changing direction of investment flows in global furniture industry

The recent globalisation trend, which has been so much a feature of the industry and contributed to the rapid expansion of furniture production in parts of Asia in recent years, may be slowing.  

Insights into the current furniture market in the EU, Continue reading "Changing direction of investment flows in global furniture industry"

Vietnam captures opportunities from US/China trade dispute

In the first three months of 2019 Vietnam’s wood product exports were valued at around US$2.3 billion, some 16% higher than in the same period in 2018. The top export markets for wood products are traditionally the USA, EU, China, Japan and S.Korea.

According to the Ministry of Agriculture and Rural development (MARD), the export growth rate is expected to rise once the EU/ Vietnam Free Trade Agreement enters into force.

As is the case with several other countries the USA/China trade conflict is creating opportunities for expanded investment and exports for Vietnam-made wood products to take advantages of preferential tariffs into the US.

However, some Vietnamese exporters have fallen into the trap of relabeling Chinese imports as made in Vietnam. Vietnamese authorities are now addressing this and have stepped up Customs checks.

Vietnam jumps to top of ASEAN wood product exporters

Mr. PhamVan Dien, Deputy Director of the Department of Forestry, has reported that in the first half of 2019 Vietnam jumped to the top of the list of ASEAN wood products exporters. It also became the 5th largest globe wood product exporter because of the sustained high growth of industrial production.

He pointed out that the top international markets US, EU, Japan and S. Korea accounted for over 80% of Vietnam’s wood product exports in the first six months of 2019 and this contributed to the positive socio-economic development of the national forest sector which now supports millions of jobs.

In the first half of 2019 around 110,000 ha. of new plantations were established however, currently, there is a drought in many areas in Vietnam and this is increasing the risk of forest fires especially in provinces such as Nghean, Hatinh, Quangbinh, Quangtri, Thuathienhue, Danang, Quangnam, Quangngai and Phuyen.

China: Top 10 softwood log importing companies

The first importing company, in terms of value, was Shanghai Shengwosheng Forest Corporation, with a total amount of imports reaching US$31,4 million. It was followed by Shanghai Mailin International trading CO.,LTD.

According to data from the Chinese Customs, in June 2019 the first ten Chinese companies imported softwood logs (pine, spruce, larch and other types) at a total value of US$125,684,219 and a total quantity of 894,454 metric tons.

The first importing company, in terms of value, was Continue reading "China: Top 10 softwood log importing companies"

Enviva receives permit for 1.4 million mt/yr wood pellet plant in Mississippi

The 1.4 million metric tons production will be exported to power plants in Europe and Asia.

U.S. pellet producer Enviva was granted permission to build a new pellet mill in the state of Mississippi. Location of the new mill is Lucedale in the south eastern part of the state. Enviva is going to produce 1.4 million metric tons of industrial pellets annually there.

The pellets will be exported to European and Asian power plants. For exporting the pellets the company is about to erect a deep-water terminal in the harbour Pascagoula, Mississippi, only some 40 miles away from Lucedale. Enviva is running two other terminals in Chesapeake, Virginia and Port of Wilmington, North Carolina.

Besides the new pellet mill in Lucedale Enviva wants to increase production capacity in the existing mill in Greenwood, South Carolina from 500,000 to 600,000 metric tons annually. Permission for that is still pending according to our information.

Norway: Sawlog prices continue to fall

The average price across the whole range of roundwood assortments in Norway fell slightly again in May 2019. Following the decline in April, this reduction to 438 NOK/m³ is the second in succession. The figure is still 10.3 % higher than in the same month of last year, however.

The figures from Statens Landbruksforvaltning (SLF) of Oslo Continue reading "Norway: Sawlog prices continue to fall"

Stora Enso sells its thermal wood business to Lunawood

The deal marks the end of heat production in Uimaharju, Finland. Lunawood, who is seeking growth, will move the equipment to other factories

Lunawood and Stora Enso have signed an agreement to sell the production assets related to Stora Enso Uimaharju Thermowood to Lunawood.

This agreement will strengthen Lunawood’s position as the global market leader and forerunner in ecological Thermowood solutions, as the company says in a press release.

“The asset purchase of Uimaharju Thermowood plays an important role in our strategic growth and supports our latest high technology investments”, says Lunawood CEO Arto Halonen.

“We are pleased to have come to an agreement with Lunawood as the buyer of our Uimaharju Thermowood production assets. We expect the Thermowood market to continue to grow and trust that we will continue to serve our Thermowood customers with products produced in our Launkalne mill in Latvia”, says Miikka Pesonen, Head of Sales, Stora Enso division Wood Products.

Stora Enso plans to run the production of Thermowood in Uimaharju until mid-July. Lunawood and Stora Enso have also settled a raw material agreement in order to guarantee the availability of existing Uimaharju product portfolio from Lunawood.

Kronospan wants to build its second plant in Ukraine

The Kronospan Group plans to build a new plant at the Gorodok site in the Rivne region of Ukraine by 2021.

In 2004, Kronospan, with the support of the European Bank for Reconstruction and Development, built its first Ukrainian plant for the production of particleboard in Novolynsk, Volyn region. Meanwhile, Kronospan will build its second plant in Ukraine near the western town of Rivne. In 2021, Kronospan expects to release the first product. To build the plant, Kronospan plans a total investment of 200 million euros.

''We are a company not only with foreign investments but also with foreign traditions of doing business. Legitimately, publicly and openly. That is why all our construction works, equipment, products - are certified according to the highest international standards. Otherwise, it can not be, because the reputation in the international market is very important, - Natalia Pokinska,'' General Director of Kronospan UA, said.''The policy of our company - to involve experts in the quality of production, independent non-governmental organizations, as well as to collaborate in large measure with local governments and residents of the territorial communities. We care not only about the high quality of manufactured products, but also about the environment. Our production will meet not only all Ukrainian standards of ecology, but alsovEuropean ones. The plant has state-of-the-art filters and cleaning equipment installed. All systems are constantly upgraded and improved,'' Polinska added.

This year, Kronospan also announced that it will build a new OSB plant on the existing Kronospan particleboard plant in Novovolynsk in northwestern Ukraine, 10 km from the Polish border. The plant will have a production capacity of 280,000 tons of OSB boards annually. As part of the OSB plant, Kronospan UA is investing in a direct heated dryer, a multi-daylight press, a 45 MW biomass boiler and a system for the discharge and purification of surface water.

Kronospan has more than 40 manufacturing plants in 30 countries worldwide - in Europe, Asia and the USA, in particular in Poland, Belarus, Turkey, Bulgaria, the United Kingdom, Luxembourg, Croatia, the USA, the Czech Republic, Latvia, China, Ukraine, etc.

Government of British Columbia plans to reduce log exports

The Government of British Columbia is taking the first step toward ensuring that more B.C. logs are processed in B.C., creating jobs for British Columbians by applying a new, targeted fee-in-lieu of manufacturing for exported logs harvested from a coastal BC Timber Sales licence.

“British Columbians believe that B.C. workers and the communities they live in should be first in line to benefit from our natural resources, and for too long government Continue reading "Government of British Columbia plans to reduce log exports"

Changing trends in China’s wood supply market: Why the NZ log exports and prices have fallen?

Several cascading effects have impacted Chinese markets for NZ pine logs in Q2 CY19, which will have ramifications throughout Q3 CY19. Some of these impacts are seasonal and some represent structural changes that have been building for the last few years. Cumulatively, these changes have shifted the NZ pine market in China to one of oversupply.

The ‘macro‐level’ issues in brief include: Continue reading "Changing trends in China’s wood supply market: Why the NZ log exports and prices have fallen?"

Södra’s results decreased in the first half

Södra’s operating profit for the first half-year totalled SEK 2,009 million, compared with SEK 2,257 million in the year-earlier period. Return on capital employed was 19 percent, which surpassed Södra’s target of 10 percent. Net sales for the second quarter of 2019 decreased slightly to SEK 6,199 million (H1/2018: 6,626), and operating profit significantly to SEK 861 million (1,318). All production facilities delivered favourable results and, as planned, CLT production commenced in May.

Further decreasing results expected for the second half of the year

“The favourable forest economy of recent years is about to subside in line with the slowdown in global economic growth. Nevertheless, Södra performed well in the second quarter. However, the economic slowdown will lead to a lower quarterly result for the second half-year compared with the year-earlier period,” said Lars Idermark, President and CEO. “All business areas delivered favourable results. As expected, prices for the company’s core products – market pulp and sawn timber – were revised downwards, but remained at high levels during the quarter.”

Biomethanol production to commence in late autumn

“Södra is following its strategy for sustained profitable growth with a focus on increased processing. In the Södra Wood business area, CLT production commenced in May and investments in a large production facility are under way. The green biomethanol venture at Mönsterås is also making good progress and production start-up is planned for late autumn. Increased timber construction and the use of liquid biofuels are key components of a growing bioeconomy. Forests have a key role to play here,” said Lars Idermark.

Results decreased in the first half

In the second quarter of 2019, consolidated net sales declined six percent to SEK 6,199 million, with operating profit of SEK 861 million (1,318). The operating margin was 14 percent (20). Sales for the first half-year amounted to SEK 12,517 million (12,343), up by just over 1 percent, with operating profit of SEK 2,009 million (2,257). The operating margin was 16 percent (18). Return on capital employed was 19 percent (26) and the equity ratio remained strong at 58 percent.

In the Södra Skog business area, operating profit totalled SEK 79 million (49) for the period. The result was positively impacted by both higher volumes and improved margins. “In Södra Skog, tackling the severe spruce bark beetle outbreak required targeted measures, and despite the extensive damage, the situation was easier to handle than expected,” said Lars Idermark.

In the Södra Wood business area, operating profit for the period totalled SEK 118 million (210), reflecting the lower price formation for sawn timber. Sales for the quarter amounted to SEK 1,592 million (1,515). The investment in CLT production is progressing as planned. Increased processing is the next stage of the strategy for Södra Wood and constitutes a component of strengthening long-term profitability.

In the Södra Cell business area, operating profit for the period totalled SEK 753 million (1,196). The earnings trend was attributable to a declining market with lower price levels, but a continued favourable USD exchange rate. Sales for the quarter amounted to SEK 3,250 million (3,603), corresponding to an operating margin of 23 percent (33).

Pinnacle announces new pellet delivery contracts in Japan and South Korea

Pinnacle will supply a total of 210,000 metric tons of industrial wood pellets to Japan and South Korea. 

Pinnacle Renewable Energy Inc. announced that it has entered into two new long-term, take-or-pay off-take contracts with customers in Japan and South Korea, both Continue reading "Pinnacle announces new pellet delivery contracts in Japan and South Korea"

India: Teak, sawnwood and plywood prices for June

Latest prices for Indian teak, plywood and sawnwood - 16-30 June 2019
Plantation teak prices
C&F prices for plantation teak landed at Indian ports are within the same range as shown in the previous report.

US$ per cu.m C&F
Angola logs 389-574
Belize logs 350-400
Benin logs 290-714
Benin sawn 530-872
Brazil logs 344-540
Brazil squares 333-556
Cameroon logs 405-616
Colombia logs 478-743
Congo D. R. logs 450-761
Costa Rica logs 357-780
Côte d'Ivoire logs 289-756
Ecuador squares 333-454
El-Salvador logs 320-732
Ghana logs 294-452
Guatemala logs 324-646
Guyana logs 300-450
Kenya logs 515-876
Laos logs 300-605
Liberia logs 265-460
Malaysian logs 225-516
Mexican logs 295-808
Nicaragua logs 402-505
Panama logs 335-475
PNG logs 443-575
Sudan logs 358-556
Tanzania, teak, sawn 307-613
Thailand logs 511-700
Togo logs 334-590
Trinidad and Tobago logs 603-753
Uganda logs 411-623
Uganda Teak sawn 680-900
Price range depends mainly on length and cross section

Prices for locally sawn imported hardwoods
Imports of tropical sawn hardwoods as well as softwood are steadily rising as manufacturers find the quality, kiln drying and ease of processing more profitable than from using domestic sawnwood.
Malaysia continues to be major supplier of sawn tropical hardwoods to India. Import prices have not changed for the past few months being held down by weaker demand in other markets affected by the US/China trade conflict.

Sawnwood, (Ex-mill) (AD) Rs. per ft3
Merbau
4100-4250
Balau
2600-2750
Resak
1800-2000
Kapur
2250-2400
Kempas
1550-1750
Red Meranti
1500-1650
Radiata pine AD
850-950
Whitewood
850-950
Price range depends mainly on length and cross section

Myanmar teak prices
The steady demand for Myanmar teak has consolidated the recent ex-yard price increases.

Sawnwood (Ex-mill) Rs. per ft3
Myanmar Teak (AD)
Export Grade F.E.Q.
15000-22000
Plantation Teak A grade
9500-11000
Plantation Teak B grade
7500-8500
Plantation Teak FAS grade6
5000-7000
Price variations depend mainly on length and cross section.

Prices for imported sawnwood
The recent ex-warehouse price increases for European and N. American temperate hardwoods and softwoods remain unchanged.

Sawnwood, (Ex-warehouse) (KD) Rs per ft3
Beech 1700-1850
Sycamore 1800-2000
Red oak 2000-2200
White Oak 2500-2600
American Walnut 5000-5500
Hemlock AB grade 2200-2450
Western Red Cedar 2300-2450
Douglas Fir 1800-2000
Price variations depend mainly on length and cross section.

Prices for WBP marine grade manufactured by domestic mills

Plywood, Rs per sq.ft
Ex-warehouse. (MR Quality)
4 mm 69
6 mm 92
9 mm 115
12 mm 143
15 mm 190
18 mm 201

Domestic ex-warehouse prices for locally manufactured MR plywood

Locally Manufactured
Plywood “Commercial
Grade”
Rs per sq.ft
Rubberwood Hardwood
4mm Rs.35 Rs.50
6mm Rs.52 Rs.66
8mm Rs.66 Rs.81
12mm Rs.81 Rs.95
15mm Rs.95 Rs.115
19mm RS.111 Rs.132
5mm Flexible ply Rs.70

Source: ITTO

Ikea to close its last U.S. plant

Ikea Industry will close its last U.S. plant with production being relocated to Europe. The Swedish furniture giant says that production in Europe is more cost favorable than in U.S.

Ikea Industry will close its plant in Danville, Virginia Continue reading "Ikea to close its last U.S. plant"

Pace of growth in US lumber prices slows

Lumber prices in US edged up 2$ over the previous week, after several weeks of considerable growth

Framing lumber trading was measured through the week, disappointing some who had expected a more active pace after the holiday. Instead, mill order files thinned, while secondaries worked down offerings on their lists.
Retailers and end-users largely maintained a just-in-time approach, sensing no immediate tightening in the distribution system. Prices were flat to mixed across species. The Random Lengths Framing Lumber Composite Price edged up $2 on strength in Southern Pine and green Douglas Fir.

Week
Jul 12
Last Week
Jul 3
Year Ago
2018
Random Lengths Framing Lumber Composite Price* $361 $359 $532
KD Western S-P-F #2&Btr 2x4 R/L Mill Price 372 392 587
KD Eastern S-P-F #1&2 2x4 R/L, delivered Great Lakes 457 460 660
Green Douglas Fir Std&Btr 2x4 R/L (Portland) 345 343 555
Southern Pine (Westside) #2 2x4 R/L 374 364 504
KD Coast Hem-Fir #2&Btr 2x4 R/L 385 387 585
Ponderosa Pine (Inland) #2&Btr 1x12 R/L 850 855 775
* Weighted average of 15 key items

Random Lengths Panel Market Report

Structural panel sales were sluggish, and buyers maintained a cautious approach. The pace of OSB sales tapered, especially in the second half of the week, and prices were flat to slightly higher. Southern Pine plywood trading was mixed and demand failed to meet expectations. Western Fir plywood trading changed little from prior weeks. After a sharp upward price move the prior week, Canadian plywood buyers experienced what traders called “sticker shock.” Consequently, follow-through was limited.
 

(f.o.b. mill prices) Week
Jul 12
Last Week
Jul 3
Year Ago
2018
Random Lengths Structural Panel Composite Price* $345 $344 $520
Southern (west-east) 15/32-inch 3-ply rated sheathing plywood 340-380 340-380 475-515
Southern (west-east) 15/32-inch 4-ply rated sheathing plywood 345-385 345-385 480-520
Western 1/2-inch 4-ply rated sheathing plywood 360 359 522
North Central 7/16-inch Oriented Strand Board 210 205 415
*Weighted average of 11 key items

Seized cargo with alleged illegal sawn tropical timber in the port of Antwerp, Greenpeace says

A cargo of precious sawn tropical timber (padoek) from Africa is currently blocked in the Belgian port of Antwerp after Greenpeace Belgium officially alerted the government of its presence there last week. The sawn timber has been produced by Chinese logging firm Wan Chuan Timber Sarl (WCTS) which has been repeatedly exposed for illegal and  destructive logging operations in the rainforest of Gabon, Central Africa, media reports said.

Since there is a high risk that illegal timber is being imported to the European market, Greenpeace is calling on the government to immediately carry out a comprehensive investigation into all stakeholders involved, prevent the wood from entering the EU market and sanction those responsible. Continue reading "Seized cargo with alleged illegal sawn tropical timber in the port of Antwerp, Greenpeace says"

Wood fiber costs for softwood pulp manufacturers have reached the highest level in five years

The Softwood Fiber Price Index (SFPI) has risen the past two years. In the 1Q/19, the Index reached its highest level since 2014. Higher wood fiber costs in the US South, Russia and New Zealand contributed to most of the rise of the SFPI in late 2018 and early 2019. It is likely that the upward trend will come to a halt during the summer, and then start to decline in the second half of 2019.

The cost of wood fiber for the world’s pulp industry has trended upward for over two years because of higher demand and a tightening regional supply of wood fiber. From the 1Q/17 to the 1Q/19, prices for pulplogs and woodchips (in the local currencies) have gone up in all 17 countries tracked by the Wood Resource Quarterly (WRQ). Continue reading "Wood fiber costs for softwood pulp manufacturers have reached the highest level in five years"

Latest prices for Chinese logs and sawnwood imports

The report below contains the latest prices of logs and sawnwood from main timber markets in China, between 16-30 June 2019.

1 Yuan=0.13 EUR
1 Yuan=0.15 US$
Guangzhou Yuzhu International Timber Market

Logs yuan/cu.m.
Merbau Dia. 100 cm+ 4-6000
Bangkirai Dia. 100 cm+ 3200-4200
Kapur Dia. 80 cm+ 2700-3000
Ulin All grades 6500
Lauan Dia. 60 cm+ -
Kempas Dia. 60 cm+ 2000-3000
Teak Dia. 30-60 cm+ 8500-8600

 

Logs yuan/cu.m.
Greenheart Dia. 40 cm+ 2300-2400
Purpleheart Dia. 60 cm+ 3000-4500
Pau Rosa Dia. 60 cm+ 2800-3000
Ipe Dia. 40 cm+ 3200-3400
Yuan per tonne
Cocobolo All grades 40-70000

 
Sawnwood

Sawnwood yuan/cu.m
Makore Grade A 9800-11800
Zebrano Grade A 9500-12500
Walnut Grade A 9500-15000
Sapelli Grade A 5000-7500
Okoume Grade A 3700-4700
Padauk Grade A 15000-18000
Mahogany Grade A 6500-7500

 

Sawnwood yuan/cu.m
Ulin All grade 9000-10000
Merbau Special grade 7500-9500
Lauan Special grade 4300-4700
Kapur Special grade 5000-6000
Teak Special grade 14000-22000

 

Sawnwood yuan/cu.m
Maple Grade A 9000-9500
Beech no knot 9000-9500
Ash no knot 5600-6300
Basswood no knot 2800-3300
Oak no knot 5300-5700
Scots pine no knot 2100

 

Sawnwood yuan/cu.m
Cherry Fas 2 inch 9000-10000
Black walnut Fas 2 inch 15000-18000
Maple Fas 8200-10000
White Oak Fas 7500-13000
Red Oak Fas 6500-8300
Finnish pine Grade A 2600-2900

Zhangjiagang Timber Market Wholesale Prices

Logs, all grades  yuan/tonne
Sapelli 3000-4000
Kevazingo 8000-32000
Padouk de africa 2400-3100
Okoume 1400-1800
Okan 2400-2800
Dibetou 2200-2500
Afrormosia 5500-6500
Wenge 4700-5500
Zingana 3400-4800
Acajou de Africa 3000-3500
Ovengkol 3100-3600
Pao rosa 5900-6600

 

Logs, all grades  yuan/tonne
Merbau 3500-5800
Lauan 1800-2020
Kapur 2020-2500
Keruing 1700-2200
Geronggang 1600
Kauri 1700-1850

 

Logs, all grades  yuan/tonne
Amoora 1900-2080
Calophyllum 2150-2350
Red Ganarium 1300-1400

(Source: ITTO)

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