In contrast with the tough situation the Russian forestry industry faced in 2012-2014, it now has a formidable development, even with the major cost reductions arising as a result of the ruble’s devaluation. Continue reading "Ruble’s devaluation has resulted in major cost reductions at Russian sawmills"
Article archive
US lumber prices on a downward trend this month
After a standoff in Canadian S-P-F sales and a downturn from Southern Pine, sales of framing lumber were silent during last week. Continue reading "US lumber prices on a downward trend this month"
Swedish Martinsons launched new CLT production line
Sweden-based engineered wood producer Martinsons is now capable of manufacturing high-storey panels up to a width of three metres. Continue reading "Swedish Martinsons launched new CLT production line"
US sawmills increase softwood lumber production in January-February
US sawmills produced 5.285 billion board ft. (bbf) of softwood lumber in the first two months of 2017, a gain of 1.7% from 5.199 bbf in the year before. Continue reading "US sawmills increase softwood lumber production in January-February"
FSC to deliberate on the Holzindustrie Schweighofer case
The Forest Stewardship Council (FSC) has gathered a group of international and national stakeholders in Bucharest (Romania) from 3 to 4 May 2017 to begin the stakeholder engagement process that is to lay the groundwork for a roadmap towards ending the disassociation with the Schweighofer Group (HS).
Among the first tasks of this meeting were to define and configure the Stakeholder Working Group (SWG) that is to act as the core stakeholder advisory group to FSC during the process.
During the two day meeting, FSC has informed the SWG members on FSC standards, policies and procedures as well as the current status of the HS disassociation case in view of obtaining their complete understanding and engagement on the process. This work will include background information on the case, the clarification about the different roles of FSC and the SWG within the process and future workflows expected by all parties.
FSC has presented the attendees with an initial draft of the Conditions Framework which stipulates the conditions that need to be fulfilled by HS and how the fulfillment will be verified in order for FSC to consider ending the disassociation with the company.
Following this first meeting, a consultation draft version of the Conditions Framework will be produced by the SWG and published for stakeholder consultation during a 30 day period, after which the SWG will revise and analyse the comments provided. A further meeting will follow later in the year to discuss this input and revise the Conditions Framework prior to SWG submitting the final proposed version of the document to FSC International. The final version of the FSC Conditions Framework will then be submitted to the FSC Board of Directors for approval.
West Fraser Timber set on upgrading mills in US South
The “macro fundamentals” setting the tone for lumber markets in North America are “very positive,” notwithstanding challenges such as transportation and the softwood lumber dispute with the US.
“Three or four years ago, we made a comment, we said we expect volatility in lumber markets until we can hit 1.3 million housing starts. And the reason we said that is we just kind of looked out towards production growth. We see limited production growth in North America. We see demand for lumber continue to improve," said West Fraser Timber Co.’s CEO, President and Director Edward Seraphim. Continue reading "West Fraser Timber set on upgrading mills in US South"
Brazilian wood-based products rise 12.2% in March
In March 2017 Brazilian exports of wood-based products (except pulp and paper) increased 12,2% in value compared to March 2016, from US$ 202 million to US$ 226.6 million.
The value of Brazil's pine sawnwood exports increased 18% between March 2016 (US$ 33.1 million) and March 2017 (US$ 39.2 million). In terms of volume, exports increased 12.5% over the same period, from 171,900 cu.m to 193,400 cu.m.
Tropical sawnwood exports fell 4% from 36,100 cu.m in March 2016 to 34,600 cu.m in March 2017 and the value of exports dropped around 8.5% from US$ 16.7 million to US$ 15.3 million, over the same period.
The value of Brazilian pine plywood exports increased 18% in March 2017 year on year, from US$ 36.5 million to US$ 43.1 million. In terms of volume exports increased 12% over the same period, from 142,600 cu.m to 159,300 cu.m.
As for tropical plywood, exports increased significantly in volume and in value, from 11,300 cu.m (US$ 4.5 million) in March 2016 to 13,900 cu.m (US$ 5.4 million) in March 2017.
For the first time in months exports of wooden furniture rose from US$ 37.5 million in March 2016 to US$ 41.8 million in March 2017, an 11.5% increase.
Central/West Africa: Logs and sawnwood prices rise slightly as demand from Europe and China improves
The positive trend in demand for some selected species continued throughout April and this was reflected in some moderate price increases.
The current demand is largely driven by the steady business with buyers for the Chinese market. Okoume prices have begun to move higher and given current buyer interest producers anticipate further modest price increases.
Interest in belli and bomanga (Brachystegia mildbraedii) is growing and prices are now very firm.
It has been reported that some regions experienced heavy rains which hampered logging operations and this seems to be particularly affecting production of sawn sapele.
Analysts say overall demand is stable and West and Central African producers appear confident the firming and slightly upward trend in prices and volumes purchased will hold for the next few months.
A slight improvement in European demand for sawn padouk has resulted in a price increase. If European buyers return more confidently to the market then prospects for the first half year would be looking good.
Log Export Prices
| West Africa logs, FOB | € per m³ | ||
| Asian market |
LM
|
B
|
BC/C
|
| Acajou/ Khaya/N’Gollon |
240
|
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) | 235 | 225 | 185↑ |
| Moabi | 330 | 300 | 235 |
| Movingui | 210 |
210
|
160
|
| Niove |
175
|
160
|
–
|
| Okan |
225
|
200 |
–
|
| 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 | 420 |
| Bilinga | FAS GMS | 530 |
| Okoumé | FAS GMS |
400↑
|
| Merchantable | 300↑ | |
| Std/Btr GMS | 340↑ | |
| Sipo | FAS GMS |
535
|
| FAS fixed sizes | 555 | |
| FAS scantlings | 560 | |
| Padouk | FAS GMS | 850↑ |
| FAS scantlings | 920 | |
| Strips | 645 | |
| Sapele | FAS Spanish sizes | 505 |
| FAS scantlings | 510 | |
| Iroko | FAS GMS | 620 |
| Scantlings | 710 | |
| Strips |
410
|
|
| Khaya | FAS GMS |
450
|
| FAS fixed |
470
|
|
| Maobi | FAS GMS |
620
|
| Scantlings |
630
|
|
| Movingui | FAS GMS |
430
|
Source: ITTO
Biesse tops Italian companies in wood machining technology
Biesse tops the list of Italian companies in the production of wood machining technology, following a study made by data gathered in 2015. Continue reading "Biesse tops Italian companies in wood machining technology"
Wood pellets price in Switzerland drops in May
The Swiss price for wood pellets increased by 1.64% in May 2017 and reached an average of CHF 359.1/t (EUR 328.17/t, as compared to last year. Continue reading "Wood pellets price in Switzerland drops in May"
Sweden exports significantly more softwood lumber to China
The Swedish sawmills have exported 1.1 million cubic meters of sawn and planed lumber during February 2017, 6% less than in the same period last year. Continue reading "Sweden exports significantly more softwood lumber to China"
Japanese power giants form joint venture to boost wood biomass power
Mitsubishi Corp. Power Systems, Inc. (MCP), owned subsidiary of Mitsubishi Corp.(MC), formed joint venture with The Kansai Electric Power Co., Inc. (KEPCO) as to develop biomass power. Continue reading "Japanese power giants form joint venture to boost wood biomass power"
Finnish roundwood prices keep up in March
Finnish roundwood prices have mostly increased in March 2017, as compared to the same period of 2016.
Continue reading "Finnish roundwood prices keep up in March"
Austria: Softwood lumber prices recover in April
In April, softwood lumber prices in Austria rose again after a slight decrease in March. The 1-2 EUR/cbm declines in March were recouped substantially.
Except edged and rough boards, all assortments have become more expensive by about 1 EUR/cbm. Rough boards' price has stagnated over the previous month, while edged boards are cheaper by 1-2 EUR/cbm.
As compared with April 2016, all softwood assortments are more expensive. Particularly, prices for edged boards and large-sized boards have increased the most. Both registered a price surge of around 5 EUR / cbm.
| Softwood Lumber Spruce/Fir | Apr. '16 | Mar. '17 | Apr. '17 | Change Apr. '16 to '17 € / cbm EXW |
| Edged Boards, 0-IIIa, 23 mm + | 229-243 | 235-248 | 234-246 | +5 / +3 |
| Rough boards in fixed dimensions, 18-22 mm | 227-239 | 230-240 | 230-240 | +3 / +1 |
| Squared timber, standard dimensions, I/II, 4-6 m | 208-218 | 209-218 | 211-219 | +3 / +1 |
| Reserve squared timber, II/III | 151-160 | 154-160 | 155-161 | +4 / +1 |
| Boards, III-IV, 8-16 cm, 4-6 m | 144-150 | 147-154 | 146-153 | +2 / +3 |
| Boards, III-IV, 8-16 cm, just 4 m | 146-152 | 149-155 | 150-156 | +4 / +4 |
| Boards, III/IV, 23 mm, 4-6 m | 147-153 | 149-155 | 150-156 | +3 / +3 |
| Boards, III/IV, 28 mm +, 3-6 m | 152-159 | 156-164 | 157-165 | +5 / +6 |
Rising ocean freight costs modifying global lumber markets dynamics
A key development of the last months or so has been a rapid, unexpected rise in container rates from the Baltic Sea area (affecting a wide range of exporting countries, e.g., Finland, Sweden, northwestern Russia, the Baltic States, Germany and some in Eastern Europe). Container rates from Finland and Sweden have essentially doubled from less than US$1,000 to ~US$2,000. It is even worse from St. Petersburg: it appears that container rates may have tripled in the last six months (from US$20/m3 to almost $60/m3). Continue reading "Rising ocean freight costs modifying global lumber markets dynamics"
Forecast: Japan’s wood demand and supply in 2017
Japan's Forestry Agency forecasts stable wood demand for 2017, but the housing starts is predicted to 4.4% less that in 2016. Continue reading "Forecast: Japan’s wood demand and supply in 2017"
Swedish softwood lumber market expected to see production capacity increases in 2017
The Swedish forest industry is forecast to grow in 2017, especially in pulp, paper and wood products. Continue reading "Swedish softwood lumber market expected to see production capacity increases in 2017"
Russian forestry companies more than double profits in 2016
The Russian forest industry reported pre-tax total profit of 173.55 billion rubles ( appr. EUR 2.87 billion) in 2016, which represents an 135% increase as compared to the previous year. Continue reading "Russian forestry companies more than double profits in 2016"
Yildiz Entegre to invest EUR 150 million in a new MDF/HDF plant in Romania
Yildiz Entegre plans to open an MDF / HDF plant near Pitesti, Romania. The investment will rise up to nearly EUR 150 million and will increase the production capacity of the Turkish company by approximately 1,3 million m³ per year. Continue reading "Yildiz Entegre to invest EUR 150 million in a new MDF/HDF plant in Romania"
Italian woodworking technology achieves 10.4% growth in 2016; positive outlook for 2017
The Italian woodworking technology sector ended 2016 with a double digit growth of 10.4 per cent year-on-year to reach EUR 2,057Mn in revenue. Continue reading "Italian woodworking technology achieves 10.4% growth in 2016; positive outlook for 2017"
