Article archive

Canadian Uniboard to increase MDF capacity

Posted on by GWMI Admin

Building on the success of the recent Microwave project with a CAD 7 million investment in 2016, Uniboard announces an CAD 18 million investment to further modernize and expand its plant at Mont Laurier.

Continuing on the theme of innovation, the new dryer configuration will use the state-of-the art technology and connect with Uniboard’s innovative gas treatment system. The project leverages proprietary expertise in clean air technology and reduction of green-house gas emissions. This new process will significantly reduce the company’s CO2 emissions, in addition to increasing the plant’s production capacity.

“Innovation in our production processes is a key element of Uniboard’s approach to operational excellence. With this investment we are continuing our commitment to growth as demonstrated also by our recent modernization and expansion announcements at Val-d’Or and Sayabec,’’ underlines James N. Hogg, President and CEO of Uniboard.

“The upgrade to a new generation dryer will not only allow us to increase productivity but also to further the positioning of our plant as the leader in MDF in North America,’’ adds Sebastien Coté, plant director of Uniboard Mont-Laurier.

Uniboard’s Mont Laurier’s MDF is renowned for its outstanding properties and its adapted solutions with such grades as Excel+®, Excel and NU Green®. Mont-Laurier’s MDF is also the substrate for Uniboard’s industry leading thermally fused laminate (TFL) line available throughout North America.

Uniboard Canada Inc. is a leading North American manufacturer of engineered wood products, having an installed capacity of over 660 million square feet of raw particleboard, high and medium-density fiberboard, of which over 50% is converted into value-added thermally fused laminates. Its mills are located in Sayabec, Val-d’Or, Mont-Laurier and Laval and employ over 800 people. Uniboard’s products are sold to retailers, distributors and finished goods manufacturers, which cater to the kitchen cabinet, furniture, office, home renovation and construction industries. Uniboard is renowned for having one of the most extensive product portfolios of engineered wood products in North America, ranging from deep embossed and synchronized TFL textures to ultra-light MDF.

Vostok-Resurs in Russia plans to start 250,000 m3/year sawmill this autumn

Posted on by GWMI Admin

Heinola is building a full-profiling sawline for Vostok Resurs in Russia.

The sawline is part of a larger delivery of an entire sawmill. The lead supplier of the new sawmill is Heinola’s sister company Hekotek.

The line is a contemporary high-speed line, which can saw conifer logs, diameters starting from 120 mm. Initially, the line will have a total capacity of around 250,000 m3 of lumber a year. The line will be controlled by one operator assisted by contemporary Heinola automation.

At the time of writing this in April 2019, work on assembling the machinery has been completed, test runs in Heinola, Finland and deliveries to the customer’s factory in Russia have been completed. Installation is planned for summer this year and the new line will start production in the autumn.

Trade impact of FLEGT licensing

Posted on by GWMI Admin

Based on structured interviews with around 150 companies in the seven main EU markets for tropical timber products (Belgium, France, Germany, Italy, Netherlands, Spain and the UK), the survey assessed trade views of the current and potential future market impact of FLEGT licensing.

The survey built on and updated results of the 2017 IMM (Independent Market Monitor) survey which covered 126 companies in the same EU countries. Reflecting the significant contribution of furniture in the mix of tropical wood products imported into the EU, the 2018 survey included coverage of a larger range of furniture companies compared to the 2017 survey.

The survey highlights that the FLEGT licensing system is now operating smoothly and easing access to the EU market for wood products from Indonesia, which became the first country to start issuing licenses in November 2016.

The survey also highlights that the combination of FLEGT licensing and the EU Timber Regulation (EUTR) is changing purchasing practices in the EU. However, the survey also highlights that licensing, in isolation, is unlikely to transform the EU market for tropical timber, and that broader market development strategies will be required to drive significant increases in EU imports of licensed products. Continue reading "Trade impact of FLEGT licensing"

Brazil: Increasing planted forests areas and planted forest exports

Posted on by GWMI Admin

The National Forest Development Plan prepared by the Brazilian Agricultural Research Corporation (Embrapa Florestas) aims at a 20% increase in the area of planted forest to achieve a national target of 20 million hectares of commercial forests by 2030.

Currently, according to the Brazilian Tree Industry (IBA), the planted forest area is 7.8 million hectares of mainly eucalyptus, pine and acacia. The area with planted forests occupies only 1% of the national territory but accounts for 91% of all wood produced for industrial purposes. The planted forest productivity averages of 35.7 cu.m/ha./year.

New measures from the Brazilian Forest Service and the National Plan for Development of Planted Forests (known as PlantarFlorestas) were discussed at a recent meeting of the Production Chain of Planted Forests at the Ministry of Agriculture, Livestock and Food Supply (MAPA).

One issue raised was the need to preserve and protect natural vegetation in some 5.6 million hectares of natural forests under private ownership.

2018 a record year for the planted forest sector

2018 was a record year for the planted forest sector in Brazil and the trade balance advanced 28% due to an increase in exports of pulp, woodbased panels and paper.

The sector exported US$10.7 billion, an increase of 26% compared to 2017. There was a rise in exports of pulp (32%), wood panels (7%) and paper (8%).

The main buyer of Brazilian pulp in 2018 was China which imported US$3.5 billion, up 38% year on year. Paper sector exports to mainly Latin American expanded 13% year on year in 2018. Woodbased panel exports rose 4% in 2018, with some 1.3 million cubic metres being exported.

The main market for woodbased panels in 2018 was Europe which saw a rise of 160% year on year. However exports to markets in Asia and Oceania declined in 2018. Sales in the Brazilian domestic market expanded around 3% in 2018 compared to 2017.

India: Increased capacity pushing up plywood prices

Posted on by GWMI Admin

Situation in the plywood sector is unsettled at the moment. Many new manufacturing licenses have been offered in various states such that production capacity has risen significantly without a corresponding increase in demand.
There has been a rise in the log raw material price and mills seek logs to sustain output and this, along with a shortage of labour and supervisory staff is testing the profitability of manufacturers which has resulted in plywood prices being increased. But whether the new prices can be sustained is questionable as demand is not expanding. Manufacturers have raised prices by about 10%.
Plants in Gabon continue to ship veneer to India. Production is increasing as more Indian companies invest in veneer production in Gabon.
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↑

Masisa to sell forestry assets in Chile and Argentina

Posted on by GWMI Admin

With the aim of strengthening and boosting Masisa’s new commercial strategy, with a focus on the Pacific and the end customer, the Board of Directors agreed to initiate an open and competitive process for the sale of the forest assets that Masisa owns in Chile and Argentina.

The Board of Directors considered that for this new focus vertical integration is not a determining factor, and that this process represents an opportunity to maximize the value of the forest assets and to generate tangible value for all the Company's shareholders. Masisa has hired UBS Investment Bank as a consultant for this process.

The forest assets subject to de sold consist of 56,190 hectares of forests in Chile, planted mainly with pine, and 54,398 hectares of forests in Argentina, planted with eucalyptus and pine.

The value of these forest assets in books as of December 31, 2018 is approximately USD 535 million, of which USD 308 million correspond to plantations and USD 227 million to forest lands.

Once the Board of Directors is clear about the magnitude of the funds it will receive from these sales, it will determine the most optimal financial structure for Masisa.

The execution of the potential transactions with respect to the Forest Assets will be subject to the approval of the corresponding authorities or by current contracts subscribed by the Company.

The president of the board, Andreas Eggenberg, said that the priority will be placed on the commercial strategy in markets such as Colombia from its productive base in Chile and Mexico, as well as to intensify Masisa’s digital transformation.

France: Oak prices rise sharply in 2018

Posted on by GWMI Admin

The selling price of standing timber in France's private forests has been growing steadily since 2012. The overall evolution of the index in 2018 (+ 8%) can be found in all markets. The rising volumes offered in Douglas fir, spruce, maritime pine and oak (with a further significant increase in prices for this species), confirms the strong sawmill activity, and the growing French construction sector.
Oak prices continue to rise: + 11.4% in 2018
Faced with a demand that remains important, the overall rising supply of oak drives prices up. Oak reported an average price of 190 € / m3 against 171 € / m3 in 2017, especially for "big" trees (> 1.7 m3). Several factors could lead to price stabilization and reduce the supply pressure on loggers and sawyers: the uncertain Brexit context which could hinder exports, the decision of German parqueters to go to other species to continue to manufacture competitive products, finally the slowdown of the Chinese economy. Continue reading "France: Oak prices rise sharply in 2018"

Prices of Swiss wood pellets drop sharply in April

Posted on by GWMI Admin

Consumer prices for wood pellets in Switzerland fell sharply in April. This means that the price decline at the end of the heating season will come one month earlier than in 2018.
The average price of ENplus A1 pellets fell by 2.3% from March to April to CHF 364.50 / t. Compared to the same month last year, the average price has fallen by 2.1%.
Depending on the delivery quantity (3-8 t), the price per tonne fluctuates between 352 CHF (8 t) and 377 CHF (3 t).
Commercial bulk pellets (17 t) have a price of CHF 338.43 / t in April. This is 2.8% less than in March and 1.9% less than in April 2018.

Columbia Forest Products ceases plywood production at its Trumann mill

Posted on by GWMI Admin

Columbia Forest Products (CFP) announced plans to cease all hardwood plywood production activities and permanently close its Trumann, Arkansas facility in the US. CFP anticipates that the permanent closure of the mill will take place sometime this fall.

According to the announcement, remaining orders for panel products manufactured at this facility are moving to other production sites within Columbia’s existing North American network.

“The decision to close Trumann is especially difficult given the skills and commitment of the employees in Trumann. As employee-owners, we consider them family. We have fought a long and challenging battle against unfair and imbalanced Chinese trade practices. First, with hardwood plywood. More recently, imported Chinese cabinets. The combined and sustained impact of these and other factors have eroded our market opportunities to the point where we just couldn’t operate the facility at a loss, waiting for the market to come back.” Greg Pray, President and CEO of Columbia Forest Products

The company had been operating the Trumann facility since 1986.

Myanmar teak logs prices see impressive rise as EU regulations strengthen

Posted on by GWMI Admin

Despite the European legislation and its Timber Regulation (EUTR) that is supposed to moralize commercial practices, the teak market remains strongly suspected of illegality. We are talking here about natural teak, that still comes from forests located in the most famous production basin in the world: Burma or Myanmar. Even the Burmese government recognizes that "the creeping risk of fraudulent exploitation is still not ruled out, especially in the Bago Mountain Range" , a region known for hosting some of the world's finest teak stands.
In April 2014, under international pressure, the Burmese government banned the export of teak logs from its territory. Myanmar Timber Enterprise (MTE), a state-owned company, Continue reading "Myanmar teak logs prices see impressive rise as EU regulations strengthen"

Georgia-Pacific to close lumber mill, citing Asian competition for Oregon logs

Posted on by GWMI Admin

Georgia-Pacific Wood Products notified employees at its Coos Bay lumber mill Thursday that it will close the facility and lay off all of the site's 111 workers.

The Atlanta-based pulp and paper company said Asian competition for Oregon logs made it more expensive to supply the Coos Bay mill. And Georgia-Pacific said the prolonged closure of Coos Bay's swing span railroad bridge made it more difficult to ship products from the site.

The 100-year-old bridge has been closed for more than a year and plans to reopen it have been repeatedly delayed. Kimble said 70 percent of the mill's products went by rail and the bridge closure was adding significantly to operating costs.

Georgia-Pacific's Coos Bay facility opened in 1994. It produces dimensional lumber - 2x4s, 2x6s and similar products.

Georgia-Pacific's western lumber general manager, Bill Goodman, wrote to state officials to notify them of the layoffs. He said the job cuts will begin June 10 and continue in phases until the Coos Bay facility is completely closed.

Russia: OSB production capacity is seeing rapid growth

Posted on by GWMI Admin

Russian OSB production is steadily growing, thanks to the ongoing recovery of the country’s national economy from the crisis, and the launch of new investment projects in the industry. Recent statements from producers, and some senior officials of the Russian Ministry of Industry and Trade, say that the OSB industry in the country is growing.

According to state data, last year the consumption of OSB in Russia amounted to 1.3 million m3 and these figures are expected to grow significantly this year, due to the ever-growing demand from some major consuming industries.

That inevitably leads to the growth of investment activities in the industry and to the launch of new projects.

One of them will be implemented in the Volga region of Russia and involves building a large-scale OSB plant there. Continue reading "Russia: OSB production capacity is seeing rapid growth"

US lumber prices fall for the seven week in a row

Posted on by GWMI Admin

Sales of framing lumber in the US continued to lag production, as supply-demand imbalances were noted across the spectrum of the distribution system. Prices sagged in most species, grades, and widths. Buyers reported some encouraging signs in end-use markets, but ample supplies in the secondary market resulted in a lack of orders reaching back to the mill level.
Prices continued to erode, and the Random Lengths Framing Lumber Composite Price fell for a seventh straight week.

This Week
Apr 12		 Last Week
Apr 5		 Year Ago
2018
Random Lengths Framing Lumber Composite Price* $353 $358 $494
KD Western S-P-F #2&Btr 2x4 R/L Mill Price 328 341 546
KD Eastern S-P-F #1&2 2x4 R/L, delivered Great Lakes 427 440 620
Green Douglas Fir Std&Btr 2x4 R/L (Portland) 290 302 540
Southern Pine (Westside) #2 2x4 R/L 405 405 554
KD Coast Hem-Fir #2&Btr 2x4 R/L 375 390 547
Ponderosa Pine (Inland) #2&Btr 1x12 R/L 860 860 755
* Weighted average of 15 key items

Random Lengths Panel Market Report

Structural panel sales were a grind, and prices faded. The weather-induced malaise that has bedeviled the OSB market for most of 2019 remained intact. In Southern Pine plywood markets, reported prices of rated sheathing eroded amid steady trading that failed to move beyond buyers covering immediate needs. Pressure on western Fir plywood producers to sell sheathing into a market lacking demand persisted. Most Canadian plywood producers experienced little interest from customers.

(f.o.b. mill prices) This Week
Apr 12		 Last Week
Apr 5		 Year Ago
2018
Random Lengths Structural Panel Composite Price* $361 $366 $528
Southern (west-east) 15/32-inch 3-ply rated sheathing plywood 375-403 380-403 490-540
Southern (west-east) 15/32-inch 4-ply rated sheathing plywood 380-415 385-415 495-545
Western 1/2-inch 4-ply rated sheathing plywood 362 364 521
North Central 7/16-inch Oriented Strand Board 190 200 405
*Weighted average of 11 key items

 

Current state of China's logs imports market

Posted on by GWMI Admin

Total softwood log stocks across China are now around 4.2-4.3 million m3. Daily uplift from the ports is currently at a record 90,000 m3 per day. The softwood log stocks have remained high since the Lunar New Year holidays. The previously mentioned 1.7 million m3 of Canadian SPF sawn timber equates to 2.5 million m3 of logs.
The rate of offtake over the next month will likely determine the market direction for the next three to six months. Over 2018 the total softwood log market remained balanced with the number of days inventory supply in the 40-50 range. Log exporters expect a similar balanced position to be sustained through 2019. Continue reading "Current state of China's logs imports market"

Current state of China’s logs imports market

Posted on by GWMI Admin

Total softwood log stocks across China are now around 4.2-4.3 million m3. Daily uplift from the ports is currently at a record 90,000 m3 per day. The softwood log stocks have remained high since the Lunar New Year holidays. The previously mentioned 1.7 million m3 of Canadian SPF sawn timber equates to 2.5 million m3 of logs.

The rate of offtake over the next month will likely determine the market direction for the next three to six months. Over 2018 the total softwood log market remained balanced with the number of days inventory supply in the 40-50 range. Log exporters expect a similar balanced position to be sustained through 2019. Continue reading "Current state of China’s logs imports market"

Lithuania: Pine and spruce sawlogs more expensive in March 2019

Posted on by GWMI Admin

After a stable February, Lithuanian roundwood prices went up again in March both as compared to February as well as compared to March 2018. Pine, spruce and birch sawlogs gained between EUR 0,58 to EUR 1,15 per cubic meter over February, while alder and small-sized softwood price decreased by EUR 0,58 and EUR 0,48 per cubic meter respectively. Continue reading "Lithuania: Pine and spruce sawlogs more expensive in March 2019"

China: Prices of main wood commodities in March 2019

Posted on by GWMI Admin
This index contains the March 2019 updated prices of logs and lumber from the two major timber distribution markets in China: Shanghai Furen Timber Market and Guangzhou Yuzhu Timber Market.

Price information in Guangdong Yuzhu Timber Market
Exchange rate: 1Euro=7.58 CNY

Imported sawn timber        
Species Grades Prices range (Euro/m3) Price range (RMB/m3)   Against March 2018 March 2019 price
Origin Min Max Min Max Trend Range
North America Cherry FAS-2" 1208.05 1476.51 9000 11000 → 9000/11000
FAS-1" 1140.94 1342.28 8500 10000 → 8500/10000
White Ash A 778.52 939.60 5800 7000 → 5800/7000
Black Walnut FAS-2" 2013.42 2416.11 15000 18000 → 15000/18000
FAS-1" 1610.74 1946.31 12000 14500 → 12000/145000
AB(1"-2"） 939.60 1073.83 7000 8000 → 7000/8000
Hard Maple FAS 1208.05 1342.28 9000 10000 → 9000/10000
Soft Maple FAS 1073.83 1140.94 8000 8500 → 8000/8500
White Oak FAS 1006.71 1744.97 7500 13000 → 7500/13000
Red Oak FAS 872.48 1114.09 6500 8300 → 6000/8000
SPF B 268.46 281.88 2000 2100 → 2000/2100
Pine Finland A 348.99 389.26 2600 2900 → 2600/2900
Africa Makore A (imported with original packing) 939.60 7000 → 7000
Zingana A 1342.28 1677.85 10000 12500 ↑ 9500/12500
Awora A 805.37 899.33 6000 6700 ↑ 5000/5500
Mezali (big) A 1610.74 2013.42 12000 15000 → 12000/15000
Keruing (Africa) A 604.03 765.10 4500 5700 → 4500/5700
Sapelli A(imported with original packing) 845.64 872.48 6300 6500 ↓ 7000/7500
Okume A 483.22 563.76 3600 4200 ↓ 4300/4700
Ebiara A 738.26 805.37 5500 6000 ↓ 6500/6900
Bubinga A 2013.42 2147.65 15000 16000 ↓ 16500/18000
Acajou A (imported with original packing) 845.64 872.48 6300 6500 ↓ 7000/7500
Adouk d'afric A 805.37 872.48 6000 6500 ↑ 6000/6300
Samba A 644.30 711.41 4800 5300 ↓ 4500/5200
Europe European Maple A 1208.05 1275.17 9000 9500 → 9000/9500
Beech Super class 697.99 5200 → 5200
Southeast Asia Nyatoh No knot 483.22 563.76 3600 4200 ↓ 4200/4400
Pontianak wood Assorted 1275.17 1409.40 9500 10500 → 9500/10500
Merbau Super class 872.48 1006.71 6500 7500 ↓ 8500/9000
Lauan Super class 604.03 630.87 4500 4700 ↑ 4300/4500
Camphorwood Super class 671.14 805.37 5000 6000 → 5000/6000
Camphorwood A 604.03 671.14 4500 5000 → 4500/5000
Ramin No knot 805.37 885.91 6000 6600 → 6000/6600
Yunnan/Myanmar Golden Teak Super class 912.75 966.44 6800 7200 ↑ 5800/6000
Red Cherry Super class 805.37 845.64 6000 6300 ↑ 5800/6000
Toon Super class 510.07 536.91 3800 4000 → 4000/4300
Teak Super class 1879.19 2684.56 14000 20000 → 14000/20000
Keruing Super class 550.34 577.18 4100 4300 → 4400/4600

Price information in Shanghai Furen Timber Market
Exchange rate: 1Euro=7.58 CNY

Imported lumber
 
Standard name Local name Specification Grade Origin Prices range (Euro/m3)   Price range (RMB/m3)   Against March 2018 March 2019 price
Min Max Min Max Trend Range
Okume Okume A(KD) Africa 429.53 563.76 3200 4200 ↓ 3400/4200
Ebiara Ebiara A(KD) 939.60 1140.94 7000 8500 → 7000/8500
Sapeli Sapeli A(KD) 644.30 872.48 4800 6500 → 4800/6500
Zingana Zingana A(KD) 738.26 1140.94 5500 8500 → 5500/8500
Bubinga Bubinga A(High mountains) 1879.19 2147.65 14000 16000 → 14000/16000
Bubinga Bubinga A(Zambia) 1208.05 1342.28 9000 10000 → 9000/10000
African Mahogany African Mahogany A 604.03 1006.71 4500 7500 → 4500/7500
Makore Makore A 1006.71 1275.17 7500 9500 → 7500/9500
Ayous Wawa Wawa FAS 483.22 577.18 3600 4300 → 3600/4300
Ayous FAS 536.91 604.03 4000 4500 → 4000/4500
Beli Beli A(KD) 536.91 711.41 4000 5300 → 4000/5300
Oak Red oak 2" FAS N.America 1046.98 1181.21 7800 8800 → 7800/8800
1" FAS 697.99 912.75 5200 6800 ↓ 5400/6800
2" 1 com 671.14 872.48 5000 6500 → 5000/6500
1" 1 com 536.91 657.72 4000 4900 → 4000/4900
White oak 2" FAS 1315.44 1610.74 9800 12000 → 9800/12000
1" FAS 939.60 1181.21 7000 8800 → 7000/8800
2" 1 com 912.75 1073.83 6800 8000 → 6800/8000
1" 1 com 604.03 805.37 4500 6000 → 4500/6000
White Ash White Ash 2" FAS 939.60 1100.67 7000 8200 → 7000/8200
1" FAS 805.37 939.60 6000 7000 → 6000/7000
2" 1 com 738.26 818.79 5500 6100 → 5500/6100
1" 1 com 630.87 684.56 4700 5100 → 4700/5100
Hard Maple Hard maple 2" FAS 939.60 1140.94 7000 8500 → 7000/8500
1" FAS 912.75 1046.98 6800 7800 → 6800/7800
Soft Maple Soft Maple 1" 1 com 805.37 872.48 6000 6500 → 6000/6500
Cherry Cherry 2" FAS 1046.98 1275.17 7800 9500 → 7800/9500
1" FAS 872.48 1073.83 6500 8000 → 6500/8000
Black Walnut Black Walnut 2" FAS 1946.31 2281.88 14500 17000 → 14500/17000
1" FAS 1476.51 1771.81 11000 13200 → 11000/13200
Red Alder Red Alder JB 322.15 429.53 2400 3200 → 2400/3200
CUS 523.49 577.18 3900 4300 → 3900/4300
SUP 644.30 697.99 4800 5200 → 4800/5200
Yellow Poplar Yellow Poplar 1" FAS 536.91 577.18 4000 4300 → 4000/4300
2" FAS 563.76 644.30 4200 4800 → 4200/4800
Yellow Meranti Yellow Meranti A Southeast Asia 483.22 523.49 3600 3900 → 3600/3900
Red Meranti Red Meranti A 510.07 550.34 3800 4100 → 3800/4100
Champaka Golden teak Assorted Yunnan/Mynmar 939.60 1140.94 7000 8500 → 7000/8500
Merbau Merbau 2" Assorted Indonesia 939.60 1275.17 7000 9500 → 7000/9500
Beech Beech AA Europe 550.34 630.87 4100 4700 → 4100/4700
heartwood 469.80 536.91 3500 4000 → 3500/4000
Ash Ash A Russia 697.99 872.48 5200 6500 → 5200/6500
Elmwood Elmwood A 604.03 805.37 4500 6000 → 4500/6000
Myanmar Teak Wooden door timber Myanmar 4228.19 4832.21 31500 36000 → 31500/36000
Decorative wood moulding timber 2416.11 2550.34 18000 19000 → 18000/19000
staircase timber 2389.26 2657.72 17800 19800 → 17800/19800
Kitchen cabinet timber 1812.08 2147.65 13500 16000 → 13500/16000
Outdoor furniture timber 1543.62 1744.97 11500 13000 → 11500/13000

 

Romania: Cartel forming accusations over Schweighofer, Kronospan and Egger

Posted on by GWMI Admin

The Romanian Competition Council has extended again the investigation on the local timber market over 35 more companies operating in Romania, so that 94 companies are currently investigated, among which there are Holzindustrie Schweighofer, Kronospan Romania, Egger Romania.

The investigation has been initiated in 2016 and is probing into alleged deals in the view of dividing the market and the supply sources, as well as of awarding the volume of timber destined for sale for a minimal price within the tenders organized by Romsilva.

Continue reading "Romania: Cartel forming accusations over Schweighofer, Kronospan and Egger"

Uncertainty in China log market lowers prices for New Zealand's logs exports

Posted on by GWMI Admin

At Wharf Gate (AWG) prices for logs delivered to ports around New Zealand decreased on average 7 NZD per JASm3 in April. This decrease in AWG prices is due to a combination of increased shipping costs and uncertainty in the China log market.
While the demand for logs is at record levels, there is an imbalance between log and domestic wholesale prices. There are log vessels enroute to China from New Zealand without confirmed Letters of Credit (LCs) and Chinese log buyers are using this opportunity to try and negotiate log prices down.
The New Zealand domestic market for logs has continued the very stable start to 2019. On average, NZ's mills report sawn timber sales up about 5% on last year. Increases in consents for new dwellings continue to be dominated by the North Island cities, with consent numbers in the South Island down on this time last year.
Due to the drop in the AWG log prices the PF Olsen Log Price Index for April decreased $3 to $131. The index is currently $2 above the two-year average, $5 above the three-year average, and $13 higher than the five-year average.
Prices for NZ's domestic log sales in April as the start of quarter 2 are mostly unchanged from quarter 1. Prices for pruned logs have remained flat despite decreases in export prices with supply and demand well balanced in most regions. Some mills in the CNI have reported an oversupply of pruned logs. There has been some modest increases in structural log prices in some regions.
The Australian market is reported as tough with demand off the boil. The weakening of the NZD against the AUD means NZ mills can lower price if required to remain competitive and still retain margin.
There is a lot of sawn timber inventory in China. In Taicang for instance there is 1.7 million m3 of Canadian SPF (spruce, pine, fir) as well as the usual other species from other countries. The price of Canadian SPF has fallen more than 30 USD in the past three months. NZ mills indicate they are targeting a slight increase in price for radiata sawn timber in the China market.

Uncertainty in China log market lowers prices for New Zealand’s logs exports

Posted on by GWMI Admin

At Wharf Gate (AWG) prices for logs delivered to ports around New Zealand decreased on average 7 NZD per JASm3 in April. This decrease in AWG prices is due to a combination of increased shipping costs and uncertainty in the China log market.

While the demand for logs is at record levels, there is an imbalance between log and domestic wholesale prices. There are log vessels enroute to China from New Zealand without confirmed Letters of Credit (LCs) and Chinese log buyers are using this opportunity to try and negotiate log prices down.

The New Zealand domestic market for logs has continued the very stable start to 2019. On average, NZ's mills report sawn timber sales up about 5% on last year. Increases in consents for new dwellings continue to be dominated by the North Island cities, with consent numbers in the South Island down on this time last year.

Due to the drop in the AWG log prices the PF Olsen Log Price Index for April decreased $3 to $131. The index is currently $2 above the two-year average, $5 above the three-year average, and $13 higher than the five-year average.

Prices for NZ's domestic log sales in April as the start of quarter 2 are mostly unchanged from quarter 1. Prices for pruned logs have remained flat despite decreases in export prices with supply and demand well balanced in most regions. Some mills in the CNI have reported an oversupply of pruned logs. There has been some modest increases in structural log prices in some regions.

The Australian market is reported as tough with demand off the boil. The weakening of the NZD against the AUD means NZ mills can lower price if required to remain competitive and still retain margin.

There is a lot of sawn timber inventory in China. In Taicang for instance there is 1.7 million m3 of Canadian SPF (spruce, pine, fir) as well as the usual other species from other countries. The price of Canadian SPF has fallen more than 30 USD in the past three months. NZ mills indicate they are targeting a slight increase in price for radiata sawn timber in the China market.

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