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US hardwood exports to SEA and Greater China see strong growth in Q1/2017
US hardwood exports maintained upward momentum in the first quarter of 2017, with a strong gain Southeast Asia (SEA) and Greater China markets, at a growth rate of 25.7%, when compared to Q1 2016. Continue reading "US hardwood exports to SEA and Greater China see strong growth in Q1/2017"
Setra reports increased earnings for the first half of 2017
Swedish wood products company Setra reports an operating profit of SEK 90 million (H1/2016: SEK 76 million) for the first half of 2017. Net sales totalled SEK 2,082 million (H1/2016: 2,188). Operating profit for the second quarter amounted to SEK 57 million (67) with net sales of SEK 1,075 million (1,160).
“We report an operating profit for the first half of SEK 90 million which is an improvement of SEK 14 million over the previous year. We have been able to increase both selling prices and sales and production volumes for comparable units,” says Hannele Arvonen, President and CEO of Setra.
Disruptions in the freight market during the spring and the industrial conflict in the Port of Gothenburg had a negative impact on both deliveries and earnings.
“Considering the problematic freight situation with a shortage of containers, the result for the first half is acceptable. Going forward we see continued good demand from our customers and a positive development for the wood products market both in Sweden and internationally,” says Arvonen.
The transaction for the sale of Setra’s sawmill in Vimmerby was completed in January 2017. Last year’s figures include the operations in Vimmerby as well as the subsidiary Setra Plusshus and the planing operations in Valbo, both of which were sold during the second quarter of 2016.
Cash flow from operating activities for the first half of 2017 amounted to SEK 96 million (3). The Group’s financial position is strong even after a dividend of SEK 100 million was paid to shareholders. The Group’s financial net debt amounted to SEK 126 million at the end of the period which corresponds to a net debt/equity ratio of 9% (18).
Wood prices in Canada might increase due to western wildfires
The rapidly spreading wildfires in British Columbia will cause the tightening of the wood products supply and price increases, due to disruption of timber operations during the peak building season. Continue reading "Wood prices in Canada might increase due to western wildfires"
Norbord suspends production at its OSB mill in Canada due to wildfires in the nearby
Norbord reported that its OSB mill in 100 Mile House, British Columbia had temporarily suspended production due to the wild fires burning nearby in the region. Continue reading "Norbord suspends production at its OSB mill in Canada due to wildfires in the nearby"
Italy uses more and more wood as a construction material
Wood has become more and more used as a construction material in Italy, despite previous years forecasts. Continue reading "Italy uses more and more wood as a construction material"
South Korean wood pellet demand expected to rise sharply
The industrial wood pellets demand in South Korea is forecast to grow over the next 50 years. Yet, despite this growth, the utilities in the country are likely to stick to short-term strategies for securing wood pellet fuel for the foreseeable future. Continue reading "South Korean wood pellet demand expected to rise sharply"
Latest prices for Brazilian logs, sawnwood and plywood
Latest prices for Brazilian logs, sawnwood and plywood prices 16-30 June 2017. Continue reading "Latest prices for Brazilian logs, sawnwood and plywood"
Sweden: Sawlog prices on a downward trend
During the first quarter of 2017, the prices for Swedish roundwood have mostly decreased as compared to the previous quarter and the same period of time last year.
Continue reading "Sweden: Sawlog prices on a downward trend"
Metsä Wood launches Open Source Wood Initiative- to accelerate growth in wood construction
A pioneering open innovation project to Metsä Wood has launched Open Source Wood initiative in order to accelerate growth in large scale wood construction. By creating this platform around modular wood construction, Metsä Wood’s aim is to connect the local wood construction industry with global knowledge to facilitate collaboration and growth.
Today the construction industry is dominated by two materials – steel and concrete. Only a fraction (5-10%) of global urban construction is wood, due in part to the fact that the industry is fragmented and local. Wood, however, is an optimal material for urban construction as it enables faster building processes; its lightness leads to more affordable structures and it is the most environmentally friendly building material, battling climate change through carbon storage.
Metsä Wood’s Executive Vice President, Esa Kaikkonen, explains: “Not enough knowledge about modular wood design and building is shared, so wood construction remains niche. There is plenty of innovation but it is difficult to find, so Open Source Wood is our solution. We believe that with open collaboration the industry can achieve significant growth.”
The initiative takes its inspiration from open source ideology, championed by the software industry, to drive innovation further and faster, and to increase speed to market. Metsä Wood is taking the first step by sharing its own intellectual property for modular Kerto® LVL (laminated veneer lumber) wood elements, making them available freely for everyone.
Additionally, Metsä Wood will award innovation in modular element design by offering 30k euro in prize money during 2017 to exceptional designs, submitted as part of the initiative, using its Kerto LVL material.
By 2050, approximately 70% of the world’s population is expected to live in urban areas. This means that we need living space for billions. At the same time, cities contribute to up to 70% of the total greenhouse gas emissions and we need to fight climate change. One way to fight climate change is to make construction more sustainable and that’s possible when building with wood on a global scale.
Eric Karsh, an engineer at Vancouver-based Equilibrium Consulting, adds: “We fundamentally need to challenge the way we build. Timber technology is now progressing so fast that knowledge transfer is often the bottleneck. Those of us who have expertise have a responsibility to share, and the fastest way is an open source approach promoting knowledge and innovation from all corners of the world. That’s why Metsä Wood is launching the initiative and makes the first step in giving away knowledge and intellectual property for prefabricated elements, allowing systematic creativity and efficiency in building.”
Roseburg Forest Products builds new engineered wood products plant in South Carolina
Oregon-based Roseburg Forest Products will expand its operations in the southeastern United States with construction of a new engineered wood products plant in Chester, South Carolina.
US home builders report shortage of lumber
For several years now, the recovery in single-family home building in the US has been hampered by shortages of labor and lots. Availability of building materials, meanwhile, has not been much of an issue, but that may be starting to change.
In answer to questions on the May 2017 survey for the NAHB/Wells Fargo Housing Market Index, 21% of single-family builders reported a shortage of framing lumber. Although still well below the share currently reporting shortages of lots and labor, this nevertheless marks a clear movement on the building materials front since 2014, when no product or material was cited as being in short supply by more than 15% of builders.
That was still true for most building materials in the May 2017 survey. Next to framing lumber, the most widespread shortages reported in 2017 are for ready-mix concrete and trusses, with 14% of builders currently reporting shortages of each.
For nearly all of these materials and products, the recent history has been relatively stable, with the share of builders reporting shortages moving only a couple of percentage points between 2014 and 2017.
Framing lumber is the single, notable exception. In 2013, it looked as though a problem with the supply of framing lumber was starting to emerge, but the situation subsequently eased. Only 8% of builders reported a shortage of framing lumber in July of 2014 and 7% in July of 2015. But then, the share more than doubled in May of 2017, to 21%—a post-housing recession high. The last time framing lumber shortages were as widespread as they are now was in October of 2004, at a time when the annual rate of housing starts was hovering around 2.0 million (compared to the current rate of about 1.1 million).
The rising share of builders reporting shortages of framing lumber is consistent with recent increases in prices for softwood lumber. It is virtually certain that an underlying factor contributing to the shortages and price increases is the ongoing softwood lumber trade dispute between the U.S. and Canada, including the duties on lumber imported from Canada levied by the Department of Commerce in 2017.
Canadian Weston Forest acquires US Great Northern Lumber of Michigan
Weston Fraser acquires Great Northern Lumber of Michigan. This is the company's first acquisition of U.S. assets.
The deal includes a remanufacturing facility in Michigan, which will operate as Northern Industrial Woods Inc., as reported by Wood Business.
“We are very excited to acquire U.S. assets for the first time in our history," Steve Rhone, president of Weston Forest, said in a news release. "Owning a facility in Michigan allows us to support our customers on both sides of the border. In this time of uncertainty around the trade of softwood lumber between Canada and the United States, this is one more step to ensure we can continue to deliver the exceptional service our customers have come to expect from us.
“We are thrilled to have a team of people joining us that believe in delivering a great customer experience. We are pleased to have them all as part of our team, and look forward to growing the business and delivering on our brand promise, you'll love doing business with us,” Rhone said.
Mississauga, Ont.-based Weston Forest distributes and remanufactures softwood and hardwood lumber and specialty panel products.
West Fraser suspends operations due to wildfires
The Province of British Columbia has declared a provincial state of emergency due to wildfire activity in the interior region.
Continue reading "West Fraser suspends operations due to wildfires"
Latvian Vika Wood increased its turnover and production for 2016
Latvian sawmill Vika Wood reached EUR 59.651 million in turnover during 2016, increasing by 0.8% as compared to the previous year. Continue reading "Latvian Vika Wood increased its turnover and production for 2016"
Wood-based panel production in Europe increased by 1,8% in 2016
On the occasion of EPF’s Annual General Meeting in Porto on 29 & 30 June 2017 and in the presence of Dr Paolo Fantoni, Chairman of EPF, and Mr Rui Correia, CEO of host company Sonae Arauco, Mr Clive Pinnington, EPF Managing Director, presented an economic review of the wood-based panels industry in 2016. Continue reading "Wood-based panel production in Europe increased by 1,8% in 2016"
Unstable forestry sector in Canada goes well during first quarter
The forestry sector in Canada is off to one of its most unstable times in recent history, even if some new figures suggest it might follow a solid start in 2017. Continue reading "Unstable forestry sector in Canada goes well during first quarter"
EU softwood lumber exports over 1 million m3 in Q1/2017; up by 64%
The European sawmills increased their softwood lumber exports on the Chinese wood market during the first quarter of 2017.
Continue reading "EU softwood lumber exports over 1 million m3 in Q1/2017; up by 64%"
Turkey overtakes Germany as leading MDF producer in Europe
Turkey has become the leading MDF producer in Europe, surpassing Germany. The country is the world’s second largest MDF producer after the world leader, China. Continue reading "Turkey overtakes Germany as leading MDF producer in Europe"
Segezha Group plans to build a huge birch plywood production in Russia
During the Saint-Petersburg International Economic Forum in June, Kamil Zakirov, CEO and Chairman of the Management Board of Segezha Group (part of Sistema JSFC) and Sergey Sitnikov, the Governor of Kostroma Region, signed the agreement of intent. Continue reading "Segezha Group plans to build a huge birch plywood production in Russia"
