Article archive

EU tropical sawn trade increasingly done through Belgium

Posted on by GWMI Admin

On the demand side, the most notable trend in EU tropical sawn hardwood imports during 2016 was increasing concentration of trade through Belgium.

This trend is much more indicative of changes in distribution channels for tropical wood within the EU than of variations in regional demand.

For reasons probably associated with differences in transit times or local costs, EU tropical wood importers currently prefer the Belgian port of Antwerp over the Dutch and French ports.

The wood entering by way of Belgium is being distributed throughout North Western Europe.

The focus on Belgium is also linked to the rising dependence on tropical sawn wood from Central Africa where kiln drying facilities are limited.

Much of the African wood shipped into Belgium arrives green and will be kiln dried there, or in Netherlands or northern France, before being distributed into other parts of Europe.

Central/West Africa: Firmer demand lifts okoume prices

Posted on by GWMI Admin

Markets are a little firmer and China in particular is actively buying selected species such as belli, okan and okoume. The firmer demand has lifted prices of okoume as stocks, built up as previous orders were cancelled, are now moving.
While Middle East markets are steady producers report weakness in the South African market due to uncertainty and delays over government infrastructure projects and the ongoing strong price competition between African and Asian species.
There has been a slowdown in the Indian purchases but the government continues to insist that housing for the people is a key policy and timber exporters are confident that this market will revive demand.
Second quarter holds promise of firmer demand
Producers in Central and West Africa are satisfied that, at present, signals from the markets suggest better times ahead. The improved sentiment has worked to steady prices and producers look forward to modest increases in demand in the second quarter.
Although prices for sipo and sapele logs remain unchanged there are signs of an improvement in demand for sawn sapele encouraging producers on expectations of higher prices for the top quality logs and sawnwood for the European market.
Producers in Congo Brazzaville, Cameroon and the Central African Republic report they are still holding fairly sizeable stocks of sapele sawnwood and European importers have adequate stocks which is a challenge for producers wishing to lift prices.
Only kiln dry sawnwood exports from Gabon
The government in Gabon has approved the long discussed new regulation requiring all sawnwood to be kiln dried before export. The details of which species are included is not yet available.
It is rumoured that some species only need to be kiln dried if the buyers request this. For other species it appears that, depending on the export market, the requirement for kiln drying may be lifted. This new regulation is expected to be ratified and come into force within weeks.
This move will greatly assist companies that recently invested in kilns but which are under-utilised. The government is confident there is sufficient kilning capacity available and that the trade will add further kilns as necessary to meet the new regulation.
Analysts suggest the new regulation will take into account concerns raised by the timber industry that not all species, such as those for sea defence and other hydraulic or outdoor use, need to be kiln dried.
Saw millers will be waiting to hear the reactions of their buyers and gauging if it is possible to pass on the cost of drying through price increases.
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
240
235
–
Bibolo/Dibétou
180
170
Bilinga
220
220
 -
Iroko 325
300
265
Okoume (60% CI, 40% CE, 20% CS) (China only) 210 190 160
Moabi 330 300 235
Movingui 210
210
160
Niove
175
160
–
Okan
210
 190
–
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 515
Okoumé FAS GMS
340
Merchantable 290
Std/Btr GMS 300
Sipo FAS GMS
540
FAS fixed sizes 560
FAS scantlings 560
Padouk FAS GMS 810
FAS scantlings 920
Strips 645
Sapele FAS Spanish sizes 505
FAS scantlings 510
Iroko FAS GMS 620
Scantlings 710
Strips
420
Khaya FAS GMS
450
FAS fixed
470
Maobi FAS GMS
620
Scantlings
630
Movingui FAS GMS
430

Source: ITTO

The Trump administration building promises to boost lumber prices

Posted on by GWMI Admin

US housing data shows that the new available homes and the sale of new homes is on the rise. Also, home builders employ more people and the purchases of orders of raw materials is increasing to, especially in lumber.  Continue reading "The Trump administration building promises to boost lumber prices"

Top 10 Russian sawn softwood exporting companies to China

Posted on by GWMI Admin

Russian softwood products exports show strong growth at the beginning of 2017. The decrease of of shipments of sawn wood, caused by the holiday season, had little impact on the dynamics of export volumes. Continue reading "Top 10 Russian sawn softwood exporting companies to China"

Lumber prices in the US on the rise with the anticipated duties on Canadian exports

Posted on by GWMI Admin

The framing lumber market in the US was active until Thursday, when the anticipated duties on Canadian exports to the U.S. set off the futures market and sent cash buyers scrambling to cover their needs with mill offerings for April shipments. Continue reading "Lumber prices in the US on the rise with the anticipated duties on Canadian exports"

Coillte, Accsys Technologies and BP form partnership to develop Tricoya wood chip manufacturing plant in the UK

Posted on by GWMI Admin

Coillte announced an innovative partnership deal that will see Coillte’s MEDITE SMARTPLY division collaborate with Accsys Technologies and BP to develop the world’s first Tricoya wood chip manufacturing plant in Hull, UK.

The EUR 68 million project is expected to transform wood technology and allow the newly created consortium to commercialise the production of acetylated woodchip.

Breakthrough proprietary technology will be used to produce wood chips that are virtually unaffected when exposed to exterior or harsh interior environments. These wood chips will be used to produce MEDITE TRICOYA EXTREME (MTE) at Coillte’s MDF manufacturing plant (Medite) in Clonmel, Co. Tipperary in Ireland.

Due to its unique innovative characteristics, MTE can be used in applications and environments never before deemed possible for this industry, including exterior joinery, doors, windows, façade and cladding.

Fergal Leamy, Chief Executive, Coillte, commented: “We are delighted to be working with such high-quality international companies in this very exciting partnership. This innovation in wood technology is a potential game changer for wood product sales. Quite simply, we will now be able to sell our MDF products for outdoor use as well as for their traditional indoor uses, significantly increasing the production and sales of MEDITE TRICOYA EXTREME products in existing and new markets.”

The investment is seen as a strong strategic fit for the Coillte business with MEDITE SMARTPLY’s strategic vision to become the leading supplier of innovative, market led MDF and OSB products through product and brand differentiation, while maximising the value of Coillte’s overall fibre basket.

Earlier, the European Investment Bank provided EUR 90 million long-term loan to Coillte for the forestry related investment.

Accsys Group comprises the holding company (Accsys Technologies PLC) and four wholly-owned subsidiaries (Titan Wood Limited, Titan Wood B.V., Titan Wood Technology B.V. and Titan Wood Inc.), which operate under the guidance of a group management team.

Coillte is a state-owned forest enterprise based in Newtown Mount Kennedy, Ireland, and a commercial company operating in forestry, land-based businesses, renewable energy and panel products. It owns over 445,000 hectares of land, about 7% of the land cover of Ireland and harvests approximately 2.5 million cubic meters of timber annually, being the major supplier of raw material to the Irish wood products industry. Coillte employs approximately 1,000 people and was established in 1988.

The largest OSB production facility in Russia inaugurated; 500.000 m3 to be produced yearly

Posted on by GWMI Admin

MLT Ltd officially opened its new OSB production facility “Taleon Arbor” in the city of Torzhok, Tver Region of Russia, in February 2017.  Continue reading "The largest OSB production facility in Russia inaugurated; 500.000 m3 to be produced yearly"

LIGNA is all set for a successful edition this year

Posted on by GWMI Admin

The world’s leading trade fair for machinery, plant and tools for the woodworking and timber processing industries – opens in just a few weeks. Over five days, from 22 to 26 May, 1,500 exhibitors from 49 nations will use the show to present a wealth of amazing innovations.

“Given the current business climate in the wood industry, the growing wave of digitalization and our revamped thematic layout, we are looking forward to a very successful LIGNA this year,” commented Christian Pfeiffer, Global Director LIGNA and Woodworking Events at Deutsche Messe.

“The show has experienced the first significant rise in booked space in several years, and we have already outstripped the final figures for the most recent stating of LIGNA, in 2015. LIGNA 2017 will occupy 128,000 square meters (over 1,377,700 sq. ft.) of display space. And it will profile products and solutions in the display categories of Tools and Machinery for Custom and Mass Production, Surface Technology, Wood Based Panel Production, Sawmill Technology, Energy from Wood, Machine Components and Automation Technology, and Forestry Technology – all intelligently grouped in a new technology-centric layout. The revamped layout has been extremely well received by our exhibitors and has triggered a significant upswing in rented space. A key change in 2017 is that the hall layout is more in keeping with the technological convergence between small woodworking workshops and large industrial processors,” explained Pfeiffer. “Visitors can expect a wealth of innovations and a world-unique lineup of machines and complex plant and equipment, including live demonstrations. There’s also a supporting program of conferences and forums in which luminaries of the woodworking and timber processing industries will present and debate future-defining trends,” he concluded.

LIGNA’s organizers, Deutsche Messe and the German Woodworking Machinery Manufacturers’ Association, owe their upbeat mood to the dynamism of the technology landscape, as expressed in the show’s new layout, the upswing experienced by the wood industry in many parts of the world and, not least, the growing tide of digitalization. Integrated manufacturing and digitalization are transforming the machines, systems and tools used in the woodworking and timber processing industries.

Industry 4.0, the Internet of Things, Smart Factory: These are the keynote themes of LIGNA 2017. They are the names and faces of a new generation of technologies that will empower users of all types to achieve greater efficiency and productivity and become more competitive.

Held in Hannover, Germany, LIGNA will map out the digitalization road ahead in all sectors of the wood industry and present the latest technology milestones along the way.

China reaches 35% in US hardwood flooring imports

Posted on by GWMI Admin

US hardwood flooring imports  in January 2017 hardwood flooring imports gained 42% year on year and were worth US$3.8 million in January.

Imports of assembled flooring panels (including engineered hardwood flooring) were US$14.3 million, 61% higher than in January 2016. China’s share in hardwood flooring imports has increased substantially.

US mports from China were worth US$1.35 million and accounted for 35% of total monthly hardwood flooring imports in January. Indonesia was the largest source of imports in 2016, but in January Indonesian shipments to the US were worth only US$494,931.

Hardwood flooring imports from Malaysia were also down compared to January 2016. Imports from Europe surpassed US$0.5 million in January. Imports of assembled flooring panels decreased 11% month-over-month on January, but imports from Brazil and Thailand were up.

China remained the largest source of imports in January at US$6.0 million, followed by Canada and Indonesia. Assembled flooring imports from all leading suppliers were higher than in January 2016.

CLT – a new high volume market for structural hardwoods

Posted on by GWMI Admin

A UK Timber Trade Federation (TTF) conference on the UK hardwood market held at the beginning of March was aimed to provide a more accurate picture of the hardwood market in the UK. Continue reading "CLT – a new high volume market for structural hardwoods"

Canada-US lumber dispute: US will impose duties totaling 30% to 40%, according to industry analysts

Posted on by GWMI Admin

Canada's forestry sector awaits for new softwood lumber exports tariffs from the US. Analysts believe that the US will impose countervailing and anti-dumping duties totalling 30% to 40%. Continue reading "Canada-US lumber dispute: US will impose duties totaling 30% to 40%, according to industry analysts"

EC establishes final anti-dumping duties of up to 23,5 % on okoume plywood imports from China

Posted on by GWMI Admin

The European Commission has released on the 6th of April 2017 a regulation imposing a definitive anti-dumping duty on imports of okoumé plywood originating in China. Continue reading "EC establishes final anti-dumping duties of up to 23,5 % on okoume plywood imports from China"

Lumber prices in the US at high levels, as home value improves

Posted on by GWMI Admin

Lumber and logs prices in the US keep on being strong two months in a row. Also, home values continue to improve, with relatively brisk sales and building, while the industry manufacturing improves. Continue reading "Lumber prices in the US at high levels, as home value improves"

Brazil: Exporters on the alert as the currency appreciates and wood production costs rise

Posted on by GWMI Admin

The Brazilian currency has appreciated sharply against the US dollar over the past 12 months which is raising alarm bells amongst wood product exporters.

According to the Brazilian Association of Mechanically Processed Timber Industry (ABIMCI) the Brazilian currency was down almost 23% on the US dollar as of February 2016 but has since strengthened steadily. Against a back-drop of rising production costs and the appreciating currency Brazilian exporters are bracing for tough times ahead.

Pine plywood manufacturers exported 1,730,470 cu.m in 2016, the highest volume in the past 10 years. This represented a 16% increase compared to the volume shipped in 2015.

According to ABIMCI exports expanded as domestic demand fell due to paralysis in the economy. While welcoming the expanded demand in the US and EU the plywood industry will be generating more profits when the domestic market also comes back to life.

Spain’s tropical wood market recovers some ground

Posted on by GWMI Admin

Hardwood consumption in Spain has recovered some ground, but growth remains slow and hardwood products are coming under renewed pressure from substitutes, including other wood non-wood products. More positively for tropical wood, tightening supply and rising prices for European oak and American white oak, is encouraging some importers to focus again on tropical wood.

These were some of the messages that came out of the General Assembly of the Spanish timber trade association AEIM held in Madrid on 10 March. Continue reading "Spain’s tropical wood market recovers some ground"

EPAL reports best year ever in 2016

Posted on by GWMI Admin

In 2016, the European Pallet Association e.V. (EPAL) achieved another record result of 105.5 million EPAL pallets in total (production and repair): up 4.35% in comparison to the previous year.

Production figures rose by 8.93% to 80.5 million EPAL pallets, while repairs rose by 1 million to 25 million repaired EPAL pallets.

Martin Leibrandt, CEO of EPAL, comments: “It is truly impressive that we could top 2015, our best year ever, and we are proud of all our EPAL licensees and the work of the EPAL National Committees, without whom this superb result would not have been possible.”

The European Pallet Association e.V. (EPAL) ensures a smooth flow of goods in the logistics world with over 450 million EPAL Euro pallets and 20 million box pallets in the world’s biggest open exchange pool.

UPM bets on Chinese market opportunities

Posted on by GWMI Admin

Foreign companies are more and more interested in developing businesses in China due to the country's supply-side structural reform, priority in innovation and other efforts in economic transformation. Continue reading "UPM bets on Chinese market opportunities"

Sweden: Tall buildings in wood may represent a good example for increasing production

Posted on by GWMI Admin

Multi-storey buildings in wood are on the rise in Sweden as their many advantages become clear. The buildings have no drying times and are quick to construct, which reduces costs and generates less disruption for neighbours. Since the structural frame is light compared with other materials, laying the foundations is also easier.

Continue reading "Sweden: Tall buildings in wood may represent a good example for increasing production"

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