The price list for teak, sawnwood and plywood between 1-15 June, 2017. Continue reading "Latest prices for Indian teak logs, sawnwood and plywood"
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Belarus: Logs export ban pushes up softwood lumber shipments to the EU countries
The softwood lumber exports from Belarus to the European Union countries have increased during the first quarter of 2017, by 34%, to a total of 396,711 m3.
Continue reading "Belarus: Logs export ban pushes up softwood lumber shipments to the EU countries"
Huge Chinese investments in Gabon’s timber industry
Yihua Enterprise (Group) Co Ltd announced that is going to expand its business in Africa with a $1 billion investment in Gabon, on the west coast of the continent.
The Guangdong-based company signed an agreement on the joint development of Gabon's timber industry with its government last month. The planned projects include an international timber trade center, more deep processing factories and a timber museum, according to Ecns.com.
Yihua has two listed companies, Yihua Life and Yihua Healthcare. Yihua Life is a leading furniture designer and manufacturer in China and has real chances to increase its sales by expanding its business in Gabon. Liu Zhuangchao, vice-chairman and general manager of Yihua Life said that the company has invited the prime minister of Gabon on a visit to China in June to discuss details for the deal.
"Gabon urgently wants to make good use of its timber resources to boost its economy. Our cooperation with the Gabonese government meets their demand, so we have their support to implement the agreement as soon as possible," Liu said. "Yihua will continue to focus on Gabon for its African business, since the country has a relatively stable political situation," he added. "We will invest $1 billion on the projects in the agreement and will add more as our cooperation expands."
As Ecns.com reported, Yihua has invested $150 million in Gabon since its purchase of the local timber company in 2012. The Chinese company has built four timber processing factories in Gabon, two of which are for deep processing. The two deep-processing bases have hired more than 1,000 local workers and boast a total capacity of 400,000 cubic meters of timber annually.
The company also plans to increase the annual capacity of two of its deep-processing factories, to 600,000 cubic meters. Moreover, Yihua plans to enter the real estate, elderly care and medical care sectors in Gabon.
Yihua Life sells the furniture it makes in 35 countries and regions internationally under the Yihua brand and the company bought HTL International, a Singaporean furniture manufacturer, for 1.83 billion yuan ($265 million) last year.
"The purchase is a big stride for a privately owned Chinese companies, but we will continue to increase global investment in the housing and lifestyle sectors," said Liu.
The Chinese government is very interested in encouraging and supporting privately owned companies to venture overseas, especially to the economies along the Belt and Road.
Russia: Production of wood pellets expected to rise sharply by 2025
While Russia’s wood pellet production is relatively young, it accounts for a six percent share of world wood pellet exports. Russia ranks 8th in the world for total wood pellet production, with three percent of total world wood pellet production.
According to FAOSTAT, production of wood pellets in Russia is forecast to increase significantly by 4 MMT by 2020, and by 8 MMT by 2025. Russia produced 1.013 MMT of wood pellets in 2016, a 3.5 percent increase from CY 2015
However, the Russian Ministry of Energy and Industry analysts forecast that production will increase at a lower pace, between 10 and 12 percent annually. Stabilization of world prices for wood pellets in CY 2017, after a downward trend in 2015 due to a drop in oil prices, will also be a driver for stimulating export from the Russian producers.
The growing interest from the European Union for biofuels, particularly wood pellets, will continue to be a major incentive for Russia to increase production of wood pellets.
Also, recently Asian countries, such as Japan and South Korea, have become more interested in Russian wood pellets and as this interest grows it will also contribute to an expansion of Russian wood pellet production.
Currently, Russia is the third largest exporter of wood pellets to the EU, after the United States and Canada.
Norway and Germany review investment in Amazon Fund
The Norwegian Ambassador to Brazil and representatives of the German Development Bank (KFW) visited the Integrated Center for Environmental Monitoring (CIMAM) in Belém, to discuss investments related to the Amazon Fund with the Secretariat of Environment and Sustainability of Pará (Semas) and the “Green Municipalities” Program (PMV).
The Amazon Fund promotes conservation and sustainable use of forests in the Amazon biome. The Fund’s resources are raised and managed by the Brazilian Development Bank (BNDES) and Norway contributes over 90% of the capital with most of the balance coming via the German Bank KFW.
The Government of Pará has invested these resources in decentralisation of environmental management and strengthened environmental monitoring in the State, acquiring the necessary infrastructure such as vehicles and equipment that support environmental inspection and activities.
During the recent meeting state representatives emphasized the development of effective mechanisms to support monitoring of environmental activities and transparency in its operations. Information is available on the official website of the Secretariat.
Other issues discussed were the Forest Products Trade and Transport System (Sisflora 2.0), the Rural Environmental Registry (CAR), the Environmental Regularization Program (PRA), the Illegal Deforestation List (ILD), the Transparency Web Portal, the technologies implemented by CIMAM and the “Sustainable Pará” Programme.
Central/West Africa: Consolidated recovery in prices for popular timbers
Central/West African producers report a small number of upward price changes for sawnwood which reflects the overall firm state of the market. As yet it is only the more popular species that are attracting higher prices.
Analysts say it is demand from buyers for the Chinese market that continues to be the main driving force behind the firmer prices but note that European buyers have also been a bit more active over the past month.
Demand in China tends to concentrate on okoume and okan and exporters anticipate sales of these two species will perform particularly well in the third quarter, building on the recovery since the beginning of the year.
The slow but modest recovery in demand for sapele appears to have consolidated and prices for sapele sawnwood are a little firmer and trending upwards. In contrast, demand for sipo remains flat and prices have not moved over the past three months.
Sawn padouk prices are firmer. There is a steady demand for padouk for the Chinese market and recently there has been an increase in interest in padouk from buyers in Belgium which is underscoring the upward price trend.
Overall, markets are firming and producers expect further slow but steady progress in demand through into the third quarter of this year.
Indian ply-mills in Gabon struggle to secure logs
Managers at the the newly established Indian owned peeler mills in Gabon have been complaining that they cannot source sufficient peeler logs because of increased demand from other plymills. This has led some of the Indian mills to start utilising ozigo peelers.
Log price unmoved for months
In spite of the overall firmer sawnwood FOB prices, there has been very little movement in log prices so far in the second quarter. The reason for this is not clear but part of the reason could be related to the moderating demand for West African logs in China.
Another reason for the flat log prices could be because importers in China have become more interested in buying sawnwood and, more recently, large sawn baulks/slabs.
The interest in so-called sawn ‘slabs’ focuses on larger dimensions and short lengths. Only time will tell if this is a long term change in market demand patterns.
Log Export Prices
| West Africa logs, FOB | € per m³ | ||
| Asian market |
LM
|
B
|
BC/C
|
| Acajou/ Khaya/N’Gollon |
245
|
240
|
160 |
| Ayous/Obéché/Wawa |
240
|
240
|
190
|
| Azobe & Ekki |
230
|
230
|
160
|
| Belli |
250
|
250
|
–
|
| Bibolo/Dibétou |
180
|
170
|
|
| Bilinga |
230
|
230
|
- |
| Iroko | 325 |
300
|
265
|
| Okoume (60% CI, 40% CE, 20% CS) (China only) | 245 | 240 | 185 |
| Moabi | 330 | 300 | 235 |
| Movingui | 210 |
210
|
160
|
| Niove |
175
|
160
|
–
|
| Okan |
230
|
205 |
–
|
| Padouk |
300
|
280 |
230
|
| Sapele | 290 | 280 | 220 |
| Sipo/Utile |
310
|
290 |
255
|
| Tali | 330 | 320 |
–
|
Sawnwood Export Prices
| West Africa sawnwood, FOB |
€ per m³
|
|
| Ayous | FAS GMS | 430 |
| Bilinga | FAS GMS | 530 |
| Okoumé | FAS GMS |
430↑
|
| Merchantable | 300 | |
| Std/Btr GMS | 350↑ | |
| Sipo | FAS GMS |
540
|
| FAS fixed sizes | 555 | |
| FAS scantlings | 560 | |
| Padouk | FAS GMS | 870↑ |
| FAS scantlings | 990↑ | |
| Strips | 645 | |
| Sapele | FAS Spanish sizes | 505 |
| FAS scantlings | 510 | |
| Iroko | FAS GMS | 630↑ |
| Scantlings | 710 | |
| Strips |
410
|
|
| Khaya | FAS GMS |
450
|
| FAS fixed |
470
|
|
| Maobi | FAS GMS |
620
|
| Scantlings |
630
|
|
| Movingui | FAS GMS |
430
|
US antidumping duties on Canadian lumber could reach an extra 10%
The antidumping duties on Canadian softwood lumber that will be announced on the 23rd of June by the United States, could be as high as 10%. Continue reading "US antidumping duties on Canadian lumber could reach an extra 10%"
Tolko restarts OSB mill operations in High Prairie, Canada
Tolko Industries announced the restart of its oriented strand board (OSB) mill, located near High Prairie, Alberta in Canada. The production is expected to begin in the first quarter of 2018.
According to the announcement, the mill has been closed since 2008 when North American housing starts fell to a generational low, resulting in a loss of markets for oriented strand board. The company made decision to restart the mill due to the markets improvement.
“We are confident that current improvements in market conditions are sustainable and that customer demand for Tolko oriented strand board products will remain strong. We would like to thank the Rachel Notley led Government of Alberta and Agriculture and Forestry Minister, Oneil Carlier, for the recent decision to grant a five-year extension to the existing Tolko High Prairie forest management area. This was key to the restart decision," Brad Thorlakson, President and CEO of Tolko, commented.
Earlier Tolko resumed land operations at the company’s Kelowna mill in Canada after the incident happened on January 30, 2017.
Tolko is a leading manufacturer of a wide range of forest products for customers around the world. The company offers lumber, OSB, plywood and veneer, and kraft paper in its product portfolio, as well as related services. Its operations located throughout Western Canada.
Proteak produces 23% more MDF
During the Q1 of 2017, Tecnotabla, Proteak’s MDF producing business, had an output of 50.685 m3, representing a growth of 23% over the previous quarter. Continue reading "Proteak produces 23% more MDF"
Metsä Group plans to start new bioproduct mill in August 2017
Metsä Group made the decision concerning the largest investment in the history of Finnish forest industry in April 2015, and the large-scale project at Äänekoski has progressed as planned – on schedule and according to the budget – towards the mill’s start-up.
At the moment, the bioproduct mill project is in the departments’ trial run and commissioning phase. The mill start-up will begin in mid-August 2017, and pulp deliveries from the new mill to customers will begin in early September 2017. The current pulp mill at Äänekoski will be shut down once the bioproduct mill starts up.
The new wastewater treatment plant has already started up with wastewater from the Äänekoski integrated mill site. From now on, all of the mill site’s wastewater and, following the start-up of the new mill, also the bioproduct mill’s wastewater will be diverted to the treatment plant. Modern treatment technology enables the bioproduct mill to operate in line with the permit limits for the existing pulp mill, even though the bioproduct mill will produce nearly triple the amount of pulp.
The trial production run of the bioproduct mill’s new drying machine has begun with the pulp of the current pulp mill, and the new machine will be in productional use at the beginning of July.
The bioproduct mill will achieve its nominal capacity approximately a year from the start-up. The mill’s pulp production capacity is 1.3 million tonnes of pulp a year. In addition, the mill will produce other bioproducts, such as tall oil, turpentine, product gas and sulphuric acid. The next-generation bioproduct mill will not use any fossil fuels at all, since it will generate all of the energy that it needs from side streams.
Swiss wood pellets price remains stable in June 2017
The Swiss price for wood pellets decreased by 0.11% in June 2017 and reached an average of CHF 359.5/t (EUR 331.6/t, as compared to the same period in 2016.
The price increased by the same percentage as compared to May 2017 (CHF 359.1/t).
Prices vary depending on the delivery quantity between 348.48 CHF / t (321.08 EUR / t) for an 8-tonne purchase to 372.31 CHF / t (343.03 EUR / t) for a 3-tonne purchase.
Larger quantities for commercial customers currently cost 335.99 CHF / t (309.57 EUR / t) for a 17-tonne purchase.
The price increased by the same percentage as compared to May 2017 (CHF 359.1/t).
Prices vary depending on the delivery quantity between 348.48 CHF / t (321.08 EUR / t) for an 8-tonne purchase to 372.31 CHF / t (343.03 EUR / t) for a 3-tonne purchase.
Larger quantities for commercial customers currently cost 335.99 CHF / t (309.57 EUR / t) for a 17-tonne purchase.
| Price of wood pellets in SwitzerlandCHF/tonne | June 2016 | May 2017 | June 2017 |
| 3 tonnes purchase quantity | 372.88 | 372.39 | 372.31 |
| 5 tonnes purchase quantity | 358.78 | 357.5 | 357.68 |
| 8 tonnes purchase quantity | 348.09 | 347.52 | 348.48 |
| Average price | 359.9 | 359.1 | 359.5 |
Canadian lumber industry expects another 10% increase in US countervailing duties
This week, the US is expected to make an announcement regarding an antidumping duty of 10% against Canadian lumber producers for allegedly undervaluing softwood. This would raise the total punitive rate to almost 30%. Continue reading "Canadian lumber industry expects another 10% increase in US countervailing duties"
EPLF members sold 476 mio m2 of laminate flooring in 2016
The EPLF publishes annual statistics - generally issued in time for the Domotex in January - on total sales for the previous year. Continue reading "EPLF members sold 476 mio m2 of laminate flooring in 2016"
New Zealand log prices highest in 20 years
Structural log prices in New Zealand reached the highest level in the last 20 years, as local mills started to compete with the export market as to secure the supply for the domestic market. Continue reading "New Zealand log prices highest in 20 years"
10% decline in EU imports of tropical sawnwood
EU imports of tropical sawnwood decreased by 10% to 180,000 MT in the first quarter of 2017. After a significant rise in trade with Cameroon last year, EU imports of tropical sawnwood from the central African country declined 13% to 64,700 MT in the first three months of 2017.
Imports also fell from Malaysia (down 2% to 24,900 MT), Gabon (down 8% to 22,100 MT), Congo (down 16% to 9,900 MT), Côte d'Ivoire (down 13% to 8,800 MT), Ghana (down 18% to 3,400 MT), DRC (down 64% to 2,200 MT) and Suriname (down 57% to 2,100 MT).
However, after a decline in 2016, EU imports of tropical sawnwood from Brazil increased 25% to 27,000 MT in the first quarter of 2017. Imports from Angola, which were negligible in 2016, increased to 2,000 MT during the period (Chart 4).
In the first quarter of 2017, tropical sawn hardwood imports declined 15% to 62,100 MT into Belgium, 14% to 20,900 tonnes into France, 37% to 14,600 tonnes into Italy, 21% to 10,400 MT into Spain, and 9% to 7,100 MT into Germany. These losses were partially offset by a 10% rise to 14,600 MT into the UK and a 33% rise to 8,100 MT into Portugal.
UPM to invest EUR 30 million into Kaukas pulp mill in Finland
UPM invests into the efficiency and competitiveness improvement of its Kaukas pulp mill in Lappeenranta, Finland. According to the announcement, the company invests EUR 30 million into the mill’s fibre lines, recovery boiler, evaporation, bailing and wood handling. Erection of the main equipment and start-up are scheduled for the spring of 2018.
Sami Saarela, Vice President, Finland Operations, UPM Pulp, commented: “Last year at the Kaukas mill we successfully completed a EUR 50 million investment, where we renewed both the pulp drying machines. Now that we have met targets with drying, we can improve the production efficiency with these targeted upgrades. Demand for pulp continues to grow especially in paper grades that are used in consumer goods. Examples of such grades are tissue, label papers and board. In previous years we have replied to growing demand with similar targeted investments in all of our pulp mills and thus cost-efficiently increased our annual pulp production capacity altogether by more than 500,000 tonnes since 2013.”
After the new project, annual production capacity of the Kaukas mill will increase by 30,000 tonnes from the current 740,000 to 770,000 tonnes of softwood and birch pulp in 2019. The majority of its production is softwood. The Kaukas softwood pulp, UPM Conifer Reinforcement, is known in the market as a strong reinforcement pulp suitable for end-uses requiring good strength properties.
UPM’s biggest ongoing pulp investment today is the EUR 98 million production expansion at the Kymi pulp mill in Kuusankoski, Finland. Started in 2016, this project comprises upgrades in wood handling, the birch fibre line, recovery island and effluent treatment. New machinery will be connected to the process during the next pulp mill shut-down planned for the autumn of 2017. After completion, annual pulp production of Kymi will reach 870,000 tonnes of softwood and birch pulp by the end of the year.
Chinese demand for Russian sawnwood at historical levels
On May 12th, 2017, the Russian government expanded the list of forest products, which are subject to the requirements of the Forestry Code “On wood transportation and accounting of transactions with it.” Continue reading "Chinese demand for Russian sawnwood at historical levels"
Century Plyboards acquires Huesoulin Wood Processing Factory in Laos
Century Ply (Singapore) Pte, a subsidiary of Century Plyboards, has acquired 49% stake in Huesoulin Wood Processing Factory. According to the announcement, the acquisition of the stake makes Huesoulin an associate company.
Huesoulin Wood Processing Factory is located in Savannakhet, Laos. It is engaged in manufacturing and trading in plywood, veneer & all wood products and providing related services.
About Century Plyboards:
The company is a key player in plywood and laminate industry in India. The company also exports its range of premium products to over 20 countries world-wide.
Langerlo power plant conversion to wood pellets fails
Graanul Invest acquired last year one of Belgium's biggest coal plants and announced it would convert it to burn wood pellets. Now, the project has reportedly failed.
Europe's biggest wood pellets producer invested approximately €250 million, with the Belgian state pledging €2.2 billion in support in the long term.
As reported by Err.ee, Graanul Invest has run out of time. Because they couldn't make a deadline and the local energy agency had not agreed to an extension, the project had now lost support, and with it was no longer economically feasible. According to earlier statements by Graanul Invest, the Langerlo power plant's conversion from coal to wood pellets could count on financial support by the Belgian state of up to €2.2 billion in the long term. The conversion works were scheduled to be completed by autumn 2018.
Paul Kirjanen, owner and CEO of Graanul Invest, explained that there was a provision in the sales contract that specified that the new owner could return the property if a flaw was found in the project they hadn't been told about leading up to the deal.
"And that's what we did. Bankruptcy proceedings have been announced for the company, but the liquidators are continuing the fight over the company's fate. How it's all going to end is difficult to say. That's why we're not dealing with the further development of the project anymore," Kirjanen added.
The failure of Graanul Invest's project is good news for environmentalists that no longer consider burning wood sustainable, becuase Langerlo would have reached 656 MW capacity at full power, supplying more than six million residents of Flanders with electricity by burning 1.8 million tons of wood pellets. The pellets would have been mainly imported from the US.
Chile and Brazil, potential lumber import markets for the US
The Trump administration is expected to bring the total tax duties on Canadian lumber imports to 30% later this month. Continue reading "Chile and Brazil, potential lumber import markets for the US"
