Vietnam's wood and wood products exports are forecast to reach $8 billion in 2017, up from $7.3 billion last year. Continue reading "Vietnam: Value of wood and wood products exports expected to surpass US$ 8 billion this year"
Article archive
Top North American softwood lumber producers
Top 40 Canadian and US softwood lumber producers held a steady production growth in 2016, due to the cooperation of a strong U.S. market, plus growth in China.
Amid an absence of any major mill acquisitions, almost all of the production gains came from existing mills. Of the top forty companies, only three in Canada and four in the U.S. recorded any production declines – a sign of a good year. Continue reading "Top North American softwood lumber producers"
IKEA to practice lower furniture prices in India
IKEA wants to lower its furniture and home decor products prices for the Indian audience before it opens its first store in Hyderabad in 2018. Continue reading "IKEA to practice lower furniture prices in India"
Prices for roundwood in Tyrol remain steady
In February, the price for the main spruce assortment (quality BC)2a-3b has remained stable in Tyrol, as well as for spruce sawlogs- quality class Cx. Continue reading "Prices for roundwood in Tyrol remain steady"
Sweden’s pine becomes increasingly more attractive in China
China’s softwood lumber imports from Sweden have been increasing in recent years due to the fact that the Sweden has organized and participated in promotional activities in China. Continue reading "Sweden’s pine becomes increasingly more attractive in China"
Switzerland: Hardwood price dynamics at the beginning of 2017
Switzerland sustains the main trends on the European timber markets, where the oak prices rise steadily, at an 30% average increase in the last two years. Continue reading "Switzerland: Hardwood price dynamics at the beginning of 2017"
Arauco construction of US particleboard plant underway
Arauco conducted recently the ground-breaking ceremonies for its new, state-of-the-art, USD 400 million particleboard plant located in Grayling, Mich. The facility is scheduled to be operational by late 2018. Continue reading "Arauco construction of US particleboard plant underway"
Mercer completed acquisition of Germany’s largest sawmill from Klausner
Mercer International Inc. announced that it has completed, through its wholly owned subsidiary Mercer Timber Products GmbH , its previously announced agreement to acquire substantially all of the assets of one of Germany's largest sawmills and a biomass power plant, near Friesau, Germany, for approximately $55.1 million plus defined working capital of approximately $6.5 million.
In connection with the acquisition, Mercer announced that it has also successfully replaced the existing €25 million revolving working capital facility of its subsidiary, Zellstoff-und Papierfabrik Rosenthal GmbH, with a new €70 million joint revolving credit facility for ZPR and MTP.
Mr. David Gandossi, Mercer's Chief Executive Officer, stated: "We are excited with the acquisition of the Friesau Facility and welcome its employees to the Mercer Group and look forward to working together to enhance value for all of our stakeholders."
Mercer forecasts a production capacity of approximately 1.3 million cbm of cut timber and a continuous production of just under 1.1 million cbm in 3-shift operation. The biomass power plant, commissioned in 2009, generates 13 MW electrical and 49.5 MW thermal energy. The electricity will be sold through a contract running until 2029. The Klausner plant has been one of the largest suppliers of wood chips for the Mercer-based pulp mill ZPR in Blankenstein, only 16 km from Friesau.
According to unaudited data, the plant in Friesau has generated annual sales of around 180 million US $ over the last three years, producing 755,000 cbm of timber per year. The proceeds from the sale of electricity therefore amounted to $10 million annually. EBITDA amounted to $13 million, of which $9 million was generated from the sale of timber and $4 million from energy sales
By purchasing the sawmill, Mercer expects synergies of $4-7 million annually, mainly by optimizing the supply of raw materials to the plants in Friesau and Blankenstein. In addition, from 2018, Mercer will once again significantly increase the cut-timber production under Klausner, which will significantly reduce costs and increase sales through a capital increase. The planned annual production volume for cut wood from 2018 is given by Mercer with around 710,000 to 780,000 cbm.
The construction sector boom seems to help the rebound of the French softwood lumber market
During the latest timber auctions organized in the French Grand Est it has been underlined the fact that the rising prices in the construction sector have serious effects on the softwood lumber market. Continue reading "The construction sector boom seems to help the rebound of the French softwood lumber market"
Kronospan to invest EUR 330 million in production site in Luxembourg
Kronospan plans to invest EUR 330 million on its production site in Sanem in the next 5 years. The investments include a second cogeneration plant and extension of the plant's production capacity. Continue reading "Kronospan to invest EUR 330 million in production site in Luxembourg"
Refugee crisis to boost Germany’s prefabricated houses market
The German prefabricated houses market has maintained the momentum of recent years and registered a sales growth of 11.5% in 2016. The total market volume in the sector amounted to 3.94 billion Euros. Higher prices in the materials sector as well as an increase in sales of 3.2% were responsible for the double-digit sales growth. According to a study by Interconnection Consulting, the current issue with the refugees, which is closely related to a housing shortage, could give the industry further impetus and gradually end its niche position in the German construction industry.
The refugee crisis as an opportunity for the industry
The wave of refugees in Germany could lead to even greater growth in the industry. The current refugee crisis has great potential for the prefabricated construction industry, because refugees need safe houses. Another aspect which generates growth is the gradual rise in market shares of prefabricated houses throughout the construction industry. While the market share of the Continue reading "Refugee crisis to boost Germany’s prefabricated houses market"
UK’s imports of timber products increased by 18% during Jan.-Feb. 2017
The timber products import volumes in UK have increased by 18% in January-February 2017, as compared to the same period last year.
As reported by TTJ, solid wood imports were 16% higher in January-February and panel products were up 23%. Also, the figures show hardwood imports up 52% to 100,000m3, but the bulletin urges caution as Finland and Norway are shown as having dramatic increases – the former’s market share of UK hardwood imports increasing from 1% to 9% and the latter’s going from zero to 8%.
As shown in the Timber Trade Federation’s (TTF) latest statistics bulletin, suggests this change has resulted from the likely mis-reporting of hardwood volumes.
Moreover, the softwood import volumes grew 13.7% to 1.02 million m3, with all leading supplier countries exporting more volumes to the UK. While Germany recorded the largest increase (+56%), Latvia and Finland came in second and third place.
The value of sawn goods was around 10% higher compared to a year ago, with planed goods soaring by 42%. Plywood imports grew by 15.7% to 299,000m3, with hardwood ply up 1.6% to 180,000m3. Indonesian and Malaysia have won market share in the hardwood ply sector, TTJ reported.
The import volumes of softwood ply increased by 46.4%, to 119,000m3, a growth which was helped by China and Brazil new demands. Particleboard volumes rose 32.7% to 147,000m3, aided by much higher volumes from Germany, with matching growth from Poland.
Yet, the OSB volumes were down 9.8% to 46,000m3, while MDF shipments grew 48.2% to 131,000m3.
New Zealand export log prices keep on rising
New Zealand export log prices generally rose this month, as key fundamentals move in the country's favour.
Continue reading "New Zealand export log prices keep on rising"
U.S. bill could drive the use of wood pellets
US lawmakers have recently passed a spending bill that could push the U.S. government agencies to promote burning wood pellets to fuel power plants. Continue reading "U.S. bill could drive the use of wood pellets"
UK TTF agrees to mandatory 3rd party plywood testing
US duties lead Canada to drive wood exports to China
A further rise in the US tariffs on Canadian softwood might lead to a lumber exports increase to China and other Asian markets. Continue reading "US duties lead Canada to drive wood exports to China"
Egger to build 650,000 m3/yr particleboard plant in Biskupiec, Poland
US the main destination for China’s wooden furniture exports
The value of China’s wooden furniture exports (including wooden seats) was US$22.3 billion in 2016, a year on year decline of 3%.
The US was the main destination for China’s wooden furniture exports and was worth US$8.2 billion, up 4% year on year, and accounted for 37% of all wooden furniture exports in 2016.
The 10 countries shown below accounted for around 75% of China’s wooden furniture exports in 2016.
China’s wooden furniture imports
The value of China's wood furniture imports was US$964 million in 2016, a year on year increase of 9%.
Over 70% was imported from five countries; Italy (US$247 million, 26%), Vietnam (US$169 million, 18%), Germany (US$132 million, 14%), Poland (US$82 million, 8.5%) and the US (US$50 million, 5.2%).
Prices for Finnish roundwood keep stable increase in March
Roundwood prices in Finland have increased in March, as compared to last month, but some of them are still on a low level with the corresponding period of 2016. Continue reading "Prices for Finnish roundwood keep stable increase in March"
Canada and the US have slight chances to resolve lumber dispute by mid-August
By the time talks of renewing NAFTA start in mid-August, there are small chances for Canada and the US to strike a deal over the lumber exports dispute. Continue reading "Canada and the US have slight chances to resolve lumber dispute by mid-August"
