Article archive

Increased earnings for Setra as demand for wood products improves

Posted on by GWMI Admin

Swedish wood products company Setra reports an operating profit of SEK 33 million (Q1/2016: SEK 9 million) for the first quarter of 2017. Net sales totalled SEK 1,007 million (Q1/2016: 1,028).

“The higher earnings compared with the first quarter of 2016 are explained by the wood products market developing in a positive direction which has enabled us to increase both selling prices and sales and production volumes. We welcome this development in the wood products market and can see good demand from our customers. However, a lack of container capacity will affect deliveries in the coming months, especially to our customers in Asia,” says Hannele Arvonen, President and CEO of Setra.

The transaction for the sale of operations at Setra’s sawmill in Vimmerby to Bergs Timber was completed in January 2017. Figures for the previous year include the operations in Vimmerby as well as the subsidiary Setra Plusshus and the planing operations in Valbo, both of which were sold in the second quarter of 2016.

Cash flow from operating activities for the first quarter amounted to SEK -28 million (Q1/2016: -42). The Group’s financial position is strong. The Group’s financial net debt amounted to SEK 133 million at the end of the period which corresponds to a net debt/equity ratio of 10% (Q1/2016: 21).

The Annual General Meeting of Setra Group AB was held today and the meeting resolved to pay a dividend of SEK 1.94 per share for the financial year 2016, a total of approximately SEK 100 million.

Key figures Jan-Mar (3 mths)
2017 2016
Net sales, SEKm 1,007 1,028
Operating profit, SEKm 33 9
Profit after tax, SEKm 23 4
Operating margin, % 3.3 0.9
Return on operating capital, %, RTM 12.1 2.1
Cash flow, SEKm -28 -42

 

Södra and Kährs Group to enter new oak partnership

Posted on by GWMI Admin

Södra and Kährs Group have signed a multi-year sales contract for oak logs from Södra’s members. A partnership has simultaneously been launched around development of the range, and long-term oak management.

Södra has been delivering oak logs from its members’ forests to Kährs Group for wooden flooring production for a long time. The extended partnership aims to strengthen the joint value chain by leveraging the broad expertise possessed by both Kährs Group and Södra in this area.

“A deepened partnership with Kährs Group to develop the value of Swedish oak forests feels positive. We both have a long-term approach and appreciate the value of Swedish oak,” said Håkan Larsson, President of the Södra Skog business area.

“Demand for oak wood flooring has been high for a long time and we see no slowdown in the interest shown by our customers, who appreciate the versatility and wide range of design solutions this material offers. We want to further develop our oak purchasing, and the long-term approach of Södra’s business model and an extended partnership with forest owners will present us with the right conditions for achieving this goal,” said Christer Persson, President and CEO of Kährs Group.

 

France: Expobois 2018 to be cancelled

Posted on by GWMI Admin

The French machinery and production engineering association SYMOP (Syndicat des Machines et Technologies de Production) has made a joint decision with Hannover Fairs International and its French branch office to cancel EXPOBOIS, the French tradeshow for the woodworking industry – originally scheduled to run from 13 to 16 March 2018 in Paris, Villepinte.

The organizers took this step in response to the reaction received so far from French woodworking machinery exhibitors. As a representative of the French woodworking machinery industry and proprietor of EXPOBOIS, SYMOP, together with its active organizing partner Deutsche Messe, saw no chance of bringing together the key market players in 2018 in a way that was capable of producing an economically feasible event to adequately reflect the spectrum of companies involved in the target industry.

Back in July 2016, the event organizers had already responded to exhibitor requests to postpone the event from November 2016 until March 2018.

SYMOP will decide on the ultimate fate of EXPOBOIS at a later point in time. The Association has been a stakeholder and organizer of EXPOBOIS in Paris since 1961.

Good 2017 start for US hardwood exports to South-East Asia and China

Posted on by GWMI Admin

Exports of US hardwood to South-East Asia and Greater China markets kept up the momentum in the first month of 2017, with an exports value reaching US$208 million, an increase of 37.5% (YoY), which accounted for 63.4% of all global exports.

Greater China market continued to soar at 40.6% in January of 2017 to US$178 million. SEA markets rose for the first time since May 2016, an increase of 21.4% to US$29.7 million compared to the same period of time.

The world value of global exports of US hardwood was US$329.5 million, up 21.4% compare to the first month of 2016. Greater China & Southeast Asia contributed 54.3% & 9% to the global exports respectively.

The export value of hardwood lumber to China increased by 26% to US$129 million, whereas log to China increased by 116% to US$44 million in comparison to January 2016. The exports value of hardwood plywood came to our attention that its value jumped over 24 times to nearly US$1.6 million compare to the same period of time which was 40% of the whole year of 2016 and was exceed the total value of the whole year of 2014 and 2015. Hardwood veneer to China continued to fall at 38% to US$0.59 million (YoY). China accounted for 58.7% of US global exports of lumber, 61.4% of US global exports of log and 20.7% of US global exports of plywood.

Southeast Asia markets rose for the first time since May 2016, an increase of 21.4% to US$29.7million in which over 77% was contributed by Vietnam, the second largest market in SEA&GRCH. Vietnam grew at 32.8% to US$23 million (YoY). Malaysia and Indonesia also grew at 18.6% and 13% to US$2.5 million and US$2.6 million respectively. Other marke

Germany: Sales of woodworking machinery close to pre-crisis levels

Posted on by GWMI Admin

During 2016, the German manufacturers of woodworking machines recorded an 11% increase in sales. The production in the country was only 2.3% higher than the forecasts. Continue reading "Germany: Sales of woodworking machinery close to pre-crisis levels"

West Fraser to pay highest countervailing duties on softwood lumber exports to US, at 24.12%; Canfor to pay 20.26%; Tolko 19.50%; Resolute 12.82%; US Commerce Dept. documents show

Posted on by GWMI Admin

Continue reading "West Fraser to pay highest countervailing duties on softwood lumber exports to US, at 24.12%; Canfor to pay 20.26%; Tolko 19.50%; Resolute 12.82%; US Commerce Dept. documents show"

Central/West Africa: Prices improve for a growing number of timbers

Posted on by GWMI Admin

In the tables below it can be seen that over the past weeks there have been a number of price increases for both logs and sawnwood. The upward movement in prices tends to be for selective timbers at present rather than a reflection of any overall improvement, however, analysts see a significant indication of market strength even before the expected upturn in seasonal demand from European buyers.
Despite the positive news, sapele and sipo prices remain unchanged. Reports indicate stocks of these timbers in producer mills are still high especially in Congo Brazzaville and Cameroon.
To the relief of producers interest in okoume logs and sawnwood is improving and the steady demand in markets other than Europe has provided an opportunity for modest FOB price increases.
Producers confirm that demand in China tends to be for kevazingo, okan, belli and okoume. India buyers are still very cautious about purchasing African logs preferring to rely on sources in SE Asia.

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↑ 180↑
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
380↑
Merchantable 290
Std/Btr GMS 320↑
Sipo FAS GMS
535↑
FAS fixed sizes 555↑
FAS scantlings 560
Padouk FAS GMS 800↑
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

Canada and the US prepare for another softwood lumber war

Posted on by GWMI Admin

Canada and the US are preparing for a new decision coming this week, regarding the so-called softwood lumber war. Policy makers in Canada have begun to calculate the potential damage of American duties. Continue reading "Canada and the US prepare for another softwood lumber war"

China is set to become the number-one customer for Finland's softwood lumber

Posted on by GWMI Admin

The volume of Finnish sawmill exports reached a new all-time high last year. The trend will continue this year and next. The importance of China will continue to grow. Measured by export volume, China is set to become the number-one customer for Finland.
Construction activity will also stimulate the demand for timber products in Europe, while the construction of single-family housing will strengthen domestic demand. The volume of sawmill production will grow about 5 percent this year and the next. In addition to rising operating rates, the profitability of the sawmill industry is also bolstered by the levelling off of the decline in export prices. The profitability of plywood remains strong in spite of an increase in competition.
Clear upward turn for forest industry exports
Investments will push Finnish pulp exports to a record high over the next two years. The growth will be particularly vigorous in 2018, although the average unit price of exports will come down.
Paperboard exports will also reach a record high. The overall decline in paper production and export will nevertheless continue this year and into the next. The need for wood-based construction products will grow domestically and in the main export market area, Europe.
Paper exports will continue to fall; continued growth in paperboard exports
Paper production and export will continue to decline this year and the next by 3–4 percent. The principal reason is the general decline in demand, which is expected to continue for the next few years. The average export price will continue to decline this year. In spite of the decline in production, paper still accounts for more than 40 percent of export earnings of Finnish forest industries. The production volume of paperboard will rise in both 2017 and 2018. Thanks to earlier investments, the increase in 2017 in particular will be considerable at 5–7 percent. The average price of paperboard will also see an increase.
Huge growth in pulp exports
Due to increased capacity, Finnish pulp exports will continue to grow. The increase in capacity will be attributable mainly to the launch of the Metsä Group’s Äänekoski mill in autumn 2017. The UPM Kymi mill will also expand its capacity this year. Finnish exports will grow 6–8 percent this year and 15–17 percent in 2018. Pulp production capacities are being expanded elsewhere in the world as well. Due to the general increase in supply, the price of Finnish exports will decline markedly next year.
Positive market outlook for sawmill products
 

China is set to become the number-one customer for Finland’s softwood lumber

Posted on by GWMI Admin

The volume of Finnish sawmill exports reached a new all-time high last year. The trend will continue this year and next. The importance of China will continue to grow. Measured by export volume, China is set to become the number-one customer for Finland.

Construction activity will also stimulate the demand for timber products in Europe, while the construction of single-family housing will strengthen domestic demand. The volume of sawmill production will grow about 5 percent this year and the next. In addition to rising operating rates, the profitability of the sawmill industry is also bolstered by the levelling off of the decline in export prices. The profitability of plywood remains strong in spite of an increase in competition.

Clear upward turn for forest industry exports

Investments will push Finnish pulp exports to a record high over the next two years. The growth will be particularly vigorous in 2018, although the average unit price of exports will come down.

Paperboard exports will also reach a record high. The overall decline in paper production and export will nevertheless continue this year and into the next. The need for wood-based construction products will grow domestically and in the main export market area, Europe.

Paper exports will continue to fall; continued growth in paperboard exports

Paper production and export will continue to decline this year and the next by 3–4 percent. The principal reason is the general decline in demand, which is expected to continue for the next few years. The average export price will continue to decline this year. In spite of the decline in production, paper still accounts for more than 40 percent of export earnings of Finnish forest industries. The production volume of paperboard will rise in both 2017 and 2018. Thanks to earlier investments, the increase in 2017 in particular will be considerable at 5–7 percent. The average price of paperboard will also see an increase.

Huge growth in pulp exports

Due to increased capacity, Finnish pulp exports will continue to grow. The increase in capacity will be attributable mainly to the launch of the Metsä Group’s Äänekoski mill in autumn 2017. The UPM Kymi mill will also expand its capacity this year. Finnish exports will grow 6–8 percent this year and 15–17 percent in 2018. Pulp production capacities are being expanded elsewhere in the world as well. Due to the general increase in supply, the price of Finnish exports will decline markedly next year.

Positive market outlook for sawmill products

 

Lumber prices in the US on the rise, while waiting for countervailing duty case with Canada

Posted on by GWMI Admin

While the US and Canada are on the wait for the preliminary determination in the countervailing duty casee, trading in framing lumber slowed — to a crawl in Canadian S-P-F. Continue reading "Lumber prices in the US on the rise, while waiting for countervailing duty case with Canada"

Classen ends Pergo’s sub-licensing rights for Classen-Patents with immediate effect

Posted on by GWMI Admin

Classen Intellectual Property GmbH, a subsidiary company of the Classen-Group, has terminated, with immediate effect, a partnership agreement with Pergo AB - a subsidiary company of Mohawk. Continue reading "Classen ends Pergo’s sub-licensing rights for Classen-Patents with immediate effect"

Newsletter

Subscribe to our digital newsletter for your daily digest of essential news, views and analysis from the international wood industry delivered directly to your inbox.



0