Article archive

European softwood logs & timber exports to China perform well in 2016

Posted on by GWMI Admin

After a slowdown in growth in 2015, mainly due to an overall slower pace in the Chinese economy and construction sector, 2016 marks an excellent year for the European sawmills on the Chinese market. Though the exports' growth is more pronounced in the softwood logs shipments, softwood timber deliveries also increased considerably. 

Thus, from January to November 2016, European softwood timber (sawn and planed) exports to China grew in value by 39% (up to EUR 333 million) as compared to EUR 240 million in the corresponding period of 2015.

Europe's softwood logs exports grew at an even higher pace.: 75% more logs were delivered to China, at a total value of EUR 46,6 million (January-November 2015: EUR 26.7 million).

Among top European exporters of softwood timber to China, Finland leads with more than 50% share, and a value of EUR 165 million. Sweden is next with EUR 112 million, followed by Germany and Austria.

Regarding softwood logs deliveries: Lithuania is the main European exporter (Jan.-Nov. 2016: EUR 9.7 million and a 359% growth) followed by Estonia and Denmark.

Softwood logs (HS 440320) exported to China from... (in EUR ) I-XI 2015 I-XI 2016 Change in %
EU Total
26,737,485 46,687,510 75 %
Lithuania
2,136,119 9,795,570 359 %
Estonia
4,219,027 8,878,000 110 %
Denmark
3,147,609 7,632,920 142 %
France
6,873,331 7,593,960 10 %
Latvia
1,269,440 3,426,200 170 %
Others
26,737,485
46,687,510
75%

 

Softwood timber (HS 440710) exported to China from... (in EUR )  I-XI 2015 I-XI 2016 Change in %
EU Total
240,517,069 333,350,772 39 %
Finland
106,902,680 165,570,541 55 %
Sweden
90,879,693 112,163,461 23 %
Germany
23,704,364 26,725,410 13 %
Austria
3,907,717 9,237,790 136 %
Spain
3,589,375 4,462,100 24 %
Others
11,533,240 15,191,470 32 %
22,182 11,300 -49 %

Elmia Wood opens up three new sections this year

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Four months before Elmia Wood opens, the organisers confirm it will be the world’s biggest forestry fair ever.

“By January we’d already sold more stand space than at the previous Elmia Wood in 2013,” says Exhibition Manager Jakob Hirsmark.

Three new sections will welcome visitors. The biggest of these is Load & Transport with its theme of forest roads, logistics and timber handling. Big-name exhibitors planning major programmes in this section include MAN, Liebherr, Volvo and Tatra.

“It’s unusual to have such a strong and immediate response for a new section,” Hirsmark says.

Another new section is the Drone Zone. As the name suggests, the theme is drones. Elmia is cooperating with UAS Forum, which organises the Nordic region’s leading conference on unmanned aerial vehicles. The exhibitors are leading suppliers of aerial products and services. Several times each day there will be aerial shows, demonstrations and talks.

Hunting is the third new section. Wildlife management is part of active forest management and the Hunting section brings together exhibitors, target practice ranges, food made from game and other activities.

Elmia Wood is one of the world’s leading forestry fair and is held every four years outdoors in the forests south of Jönköping, Sweden. The last Elmia Wood (2013) had over 500 exhibitors and 50,000 visitors from around the world and was widely reported on by the international trade press. On 7–10 June 2017 the global forest industry will meet again.

Construction is underway for Kebony’s second European factory in Flanders

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On the 9th of February, Philippe Muyters, Flemish Minister for Work, Economy, Innovation and Sports, visited the site of Kebony’s second European factory, to celebrate the groundbreaking of this new facility. This milestone comes one year after Kebony announced that €19.05 million (177.5 million NOK) had been raised to build the new facility, which included investment from Flemish company PMV. 

Work has now begun on the new factory in the Flanders region of Belgium, bringing with it €20 million of investment for the Belgian economy and the creation of 25 local jobs. Spanning 2 hectares the factory will initially produce 20,000m3 of Kebony wood each year, however, if required an additional 2 hectares of land can be developed enabling the workforce to double with the potential to increase output to 40,000m3, the company informs. The plant is located next to the site of the chemical company LANXESS, at the Scheldt Chemical and Industrial Park (ScCIP) in Kallo, which will deliver utilities and site services to its new neighbour.

The new factory will be in the vicinity of Kebony’s machining partner, Rudy De Keyser, in Kruibeke. Kebony has confirmed agreements already with several wood retail companies through the master importer Martens Hout in Antwerp and Limburg. These retailers include: Vandenbroucke in Beernem, Biemar bois in Soumagne, Carlier bois in Namur, Huart bois in Houdeng-Goegnies, and Hoffman Freres in Luxemburg.

As the company states, demand for Kebony wood has now exceeded the current production capacity at Kebony’s existing factory in Vold, Norway.  Developed in Norway, the patented Kebony technology, which has taken years of research and development, enhances the properties of sustainable softwood with a bio-based liquid. The process permanently modifies the wood cell walls giving Kebony hardwood characteristics, resulting in significantly improved durability and structural stability, as Kebony says.

Lumber prices in the US hit sharpest weekly gain, going $25 up

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Framing lumber producers kept the prices at a high level, due to the Canadian mills levering quotes higher on expectations of punishing duties that could be imposed by the U.S. in the spring. Continue reading "Lumber prices in the US hit sharpest weekly gain, going $25 up"

US: Higher engineered flooring imports from Indonesia but lower imports of hardwood flooring

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US imports of hardwood flooring and assembled flooring panels declined in November from the previous month.

Hardwood flooring and assembled flooring panel imports were worth US$3.6 million and US$14.9 million, respectively in November. Year-to-date imports of assembled panels were up 18% compared to the same time in 2015, while hardwood flooring imports were down from the previous year.

Hardwood flooring imports from Malaysia grew 60% month-on-month, but both Malaysia and Indonesia lost US market share in 2016 to China and Canada. At US$737,291, Indonesia was the largest source of hardwood flooring supply in November, but year-to-date imports from Indonesia were lower than in 2015.

Imports of assembled flooring panels from Indonesia and Brazil increased in November. Indonesian shipments of flooring panels soared 57% month-on-month to US$1.3 million. Year-to-date imports from Indonesia were up 9% from November 2015.

Flooring panel imports from China fell 20% in November, but China still accounted for over 40% of all US flooring panel imports.

Wood products prices in Germany: Germany: KVH price continues to decline; pellets and wood chips cheaper in December

Posted on by GWMI Admin

In December 2016, Germany's producer prices of wood products have hardly changed as compared to November. Boards, battens and squared timber have recorded a minimal decline of around 0.4-0.5%.
Hardwood lumber and beech frames have grown by about 0.36%. These were the strongest price movements. In sum, the price movements of last month are on a slight downward trend.
Compared to last year, a similar picture as in the previous months can be noticed. Especially pellets and wood chips are significant cheaper over the previous year. Also KVH is again on a negative trend after a high phase registered in the first half of 2016.
On the other hand, rawboards are still well above last year's level. In addition, hardwood lumber and beech frames are up, as well as wide boards and raw HDF boards.

Germany's Producer Price Index Commercial Products
(2000=100)		 Dec.
2015		 Nov.
2016		 Dec.
2016		 Change
Dec. '15
to '16
Spruce and Fir lumber (Picea abies Karst.) 113.6 114.0 113.7 +0,09%
Lumber according to DIN 4074/S10 117.5 115.2 115.0 -2,13%
Finger-jointed squares and beams (KVH) 106.9 100.3 100.6 -5,89%
Boards, width over 16 cm 117.2 121.7 121.7 +3,84%
Boards, width from 8 to 16 cm, size from 15 to 24 mm 111.8 110.1 109.6 -1,97%
Roof battens according to DIN 4074/S10 114.6 118.3 117.7 +2,71%
Reserve squared timber, A/B, 10X10 - 12X12 113.5 114.7 114.2 +0,62%
Softwood, size>6mm, planed, sanded, finger-jointed 113.9 110.9 111.0 -2,55%
Wood chips from softwood 117.3 98.4 98.0 -16,45%
Pellets and Briquets, compressed 136.0 120.5 120.6 -11,32%
Hardwood lumber 106.4 110.2 110.6 +3,95%
Beech blocks, A/B, size 50-60 mm, length 3m, damped 102.3 103.8 103.8 +1.47%
Beech frames, size 26-32 mm, length  3m, undamped 106.9 110.9 111.3 +4,12%
Particle boards, raw or sanded 105.7 118.1 118.0 +11,64%
Particle boards, laminated with decor 114.4 115.2 115.2 +0,70%
HDF panels, size > 800 kg/m³, raw/sanded 110.5 114.6 114.4 +3,53%
Laminate floorings, density > 800 kg/m³ 110.2 108.9 109.0 -1.09%

Södra increases market price for softwood pulp in Europe

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Södra announced that it will increase its market price for NBSK (Northern Bleached Softwood Kraft) in Europe to US$840 per tonne, for all new business.
“Current market conditions are very favorable and demand is solid. We closed January business with prices on the rise amid consensus from our customers,” said Magnus Björkman, VP Sales and Marketing, Södra Cell.
“Also recent global statistics and market conditions support this momentum," he added.
Södra, with headquarters in Vaxjo, Sweden, produces market pulp, wood products and biofuels. The company operates three pulp mills in Sweden (Mörrum, Mönsterås and Värö.) with a total capacity of 1.6 million tonnes per year. Sodra produces both softwood and hardwood pulp — 90% softwood and 10% hardwood.

Trade fair duo of imm cologne and LivingKitchen achieves more than 150,000 visitors

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From January 16 to the 22nd the trade fair duo of imm cologne and LivingKitchen achieved for the first time more than 150,000 visitors as reported by the event’s organizer, Koelnmesse GmbH. The international importance of the parallel trade fairs was also made evident as one in two trade visitors came from outside Germany. Also present in Cologne were the top 30 global retail.

Of the 104,000 trade visitors, around 56,000 came from Germany and approximately 48,000 from abroad (an increase of 4 per cent). Within Europe, increases in visitor figures were recorded in particular from Spain (up 25 per cent), Russia (up 26 per cent), Italy (up 19 per cent) and the UK (up 13 per cent). Visitor numbers from the Netherlands and Poland also increased. Numbers of overseas trade visitors rose, in particular visitors from China (up 5 per cent), South Korea (up 12 per cent) and India (up 5 per cent). A rise was also recorded in visitor numbers from the Middle East (up 19 per cent), with particularly strong growth from the United Arab Emirates. With these excellent numbers of foreign visitors, the two trade fairs will boost exhibitors’ exports.

Koelnmesse Chief Operating Officer Katharina C. Hamma emphasized the quality of the trade visitors: “No other event brings supply and demand together as effectively in this quality as imm cologne and LivingKitchen.” Initial evaluations of the results showed that the trade visitors included large numbers of the global top 30 retail chains, such as John Lewis, Home Retail Group, Harveys Furniture −all from the UK − as well as Conforama from France and Nitori from Japan. The major industry players in online retail − including Amazon and the Otto Group − also used the event intensively for their businesses. With these results, the trade fair duo has confirmed its importance for the interior design industry’s global commercial operations on a national and an international level.

The next imm cologne will take place from 15 to 21 January 2018 in Cologne, co- located with LivingInteriors.

US softwood lumber production up 3.7%

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U.S. sawmills produced 30.193 billion board feet (bbf) of softwood lumber in the first 11 months of 2016, an increase of 3.7% from 29.122 bbf a year earlier.

Western U.S. sawmills accounted for 12.829 bbf of the 11-month total, a gain of 2.8% from 12.484 bbf a year earlier, while Southern U.S. sawmills contributed 15.983 bbf – up 4.4% from 15.303 bbf, , the Western Wood Products Assn. reported in its monthly Lumber Track report.

Output in November was 2.583 bbf, a year-over-year increase of 11.9% from 2.307 bbf, but down 5.5% from 2.734 bbf in October 2016.

Of November’s total, sawmills in the western U.S. contributed 1.126 bbf, up 9.1% from 1.032 bbf a year earlier, but down 4.3% from 1.176 bbf in the previous month. Southern U.S. sawmills accounted for 1.339 bbf , up 14.4% from 1.170 bbf in November 2015, but down 6.6% from production in October 2016 of 1.434 bbf.

Apparent U.S. softwood lumber consumption climbed 10.2% in the 11-month period to 44.656 bbf from 40.510 bbf a year earlier. Consumption in November was 3.731 bbf – up 6.7% year-over-year from 3.496 bbf, but down 6.0% from 3.968 bbf in the previous month.

Canadian softwood lumber production/consumption

Canadian sawmills produced 26.312 bbf of softwood lumber in the first 11 months of 2016 – up 7.4% from 24.494 bbf a year earlier, WWPA reported.

Sawmills in British Columbia accounted for 12.622 bbf of the 11-month total, up 4.1% from 12.125 bbf a year earlier, while sawmills east of the Rockies produced 13.690 bbf, a gain of 10.7% from 12.369 bbf in the first 11 months of 2016.

Production in November was 2.493 bbf, a gain of 8.4% from 2.301 bbf in November 2015, and up 1.6% from 2.454 bbf in October 2016.

Sawmills in British Columbia contributed 1.145 bbf to November’s production, a year-over-year gain of 4.7% from 1.093 bbf, and up 0.5% from 1.139 bbf in the previous month.

Sawmills east of the Rockies accounted for 1.349 bbf of the monthly total, an 11.7% increase from 1.208 bbf a year earlier, and up 2.5% from 1.136 bbf in October 2016.

Apparent Canadian softwood lumber consumption was 9.375 bbf in the first 11 months, a 15.1% increase from 8.142 bbf a year earlier. In November, consumption was 1.312 bbf, a year-over-year increase of 121.3% from 593 million board ft. (mmbf), and up 61.0% from 815 mmbf in the previous month.

U.S. and Canada utilization/inventories

U.S. production as a percentage of practical capacity averaged 86% in the 11 months to November 2016, up from 83% year earlier. In Canada, the figure rose to 91% from 86% a year earlier.

U.S. inventories dropped by 1.0% to 3.022 bbf in November from 3.052 bbf in the year before, while Canadian inventories reduced by 1.3% to 2.891 bbf from 2.930 bbf.

Rougier signs partnership contract to supply logs for Gabon

Posted on by GWMI Admin

Rougier and Gabon Special Economic Zone (GSEZ) announced signing of a major partnership contract to supply logs for the processing units located in Gabon’s Nkok Special Economic Zone. Continue reading "Rougier signs partnership contract to supply logs for Gabon"

Global forest industry results for the fourth quarter of 2016

Posted on by GWMI Admin

Global forest industry results in the Q4/2016 are shown below.

Global Timber Markets

With a few exceptions, sawlog prices were lower throughout the world in the 4Q/16 than they were in the previous quarter. The Global Sawlog Price Index (GSPI) fell 1.2% to US$69.82/m3 in the 4Q/16. The current GSPI is up 1.4% from a year ago but over 13% lower than in the same quarter two years ago.

Sawlog prices in Europe have been trending downward the past three years from their record high levels in 2014. The European Sawlog Price Index (ESPI-€) was €83.16/m3 in the 4Q/16, 8.2% below its peak in the 1Q/14. Sawlog prices in Sweden, Finland and Norway are currently at their lowest levels in over ten years in their local currencies despite healthy lumber markets for the sawmills in the region.

Global Pulpwood Prices

Both wood fiber price indices fell in the 4Q/16, with the SFPI declining 3.2% q-oq to $85.65/odmt, and the HFPI falling 2.6% to $86.16/odmt.

Softwood fiber prices were down in most of Europe and North America, while they increased in Latin America, Russia, Oceania and Asia in the 4Q/16. The biggest declines occurred in Canada, Sweden and Germany, where prices in US dollar terms were lower because of reduced prices in the local currencies and a stronger US dollar.

Hardwood fiber prices followed the same pattern as that of softwood prices, with generally lower prices in Europe and North America q-o-q, while prices were slightly higher in Latin America and Oceania. In Russia, prices were up over 11% from the 3Q/16.

Global Pulp Markets

During the first 11 months of 2016, global market pulp production was up 3.4% as compared to the same period in 2015. The rise in production in 2016 is a continuation of an upward trend that started in 2011.

Softwood pulp prices have been quite stable throughout 2016 and indications early in 2017 are that pulp producers in North America and Europe are pushing for price increases during the first quarter, as markets are strengthening.

Prices of hardwood pulp (BHKP) fell during much of 2016. In Europe, prices in the end of 2016 were at their lowest levels in five years.

Global Lumber Markets

Global softwood lumber trade increased 12 percent year-over-year in 2016 to reach a new record-high of 121 million m3, according to estimates by WRI. Since the global financial reception in 2009, there has been a steady climb in international trade of lumber with shipments the past seven years having increased as much as 66 percent.

Lumber exports from British Columbia are on pace to reach their highest levels since 2006 this year.

Lumber prices in the US trended upward during most of 2016 but plateaued late in the year and in early 2017. Current prices are close to the highest levels in almost two years.

Although prices increased in both Finland and Sweden during the spring and summer of 2016, this upward trend was short-lived and prices fell during the fall, and in the 4Q/16, were back down to about the same level as in the 4Q/15.

Despite relatively pessimistic forecasts for wood demand early in 2016, China’s need for imported wood picked up during the summer and fall with import volumes in the 4Q/16 being up about 20% as compared to the 4Q/15.

Global Biomass Markets

US pellet exports increased to 1.16 million ton in the 3Q/16, with all the volume headed to Europe. US pellet exports to Asia have dried up with no significant volumes having been recorded in the past five quarters.

Prices for residential pellets in Germany have increased for two consecutive quarters and are currently at their highest level in two years

Södra invests in increasing sawmills’ production capacity; Långasjö, Värö, and Orrefors sawmills to be upgraded

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Södra is investing just over SEK 200 million in the Långasjö, Värö, and Orrefors sawmills. The largest investment will be made in Långasjö, where production volume will increase from 280,000 cubic metres to 360,000 cubic metres, which will mean the creation of 25 jobs. Continue reading "Södra invests in increasing sawmills’ production capacity; Långasjö, Värö, and Orrefors sawmills to be upgraded"

Russia: Analysis of the plywood and wood-based panels industry (financial and production capacity)

Posted on by GWMI Admin

The Russian plywood industry is presented today by 65 factories with projected capacity of 4 million m3. They are working with a 85-90% load (3.6 million m3 at the end of 2015). Nearly all of this volume is birch plywood, except for the mill of Ilim Timber in the Irkutsk region and presently stopped Yenisei FK, which has been recently purchased by an investor for re-launch. Continue reading "Russia: Analysis of the plywood and wood-based panels industry (financial and production capacity)"

Homag Group now with 75% stake in Benz GmbH Werkzeugsysteme

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Homag Group AG has increased its stake in Benz GmbH Werkzeugsysteme, Haslach i.K. and Rheinau, from 51% to 75%. The Homag Group plans to take over the remaining 25% stake by the end of 2018, thus becoming sole shareholder.

The seller of the shares is the Zimmer Group, Rheinau, which previously owned 49% of the shares in Benz GmbH Werkzeugsysteme.

"Thanks to its range of woodworking products, Benz has been the Homag Group's preferred development partner and supplier in the field of tooling systems for many years", says Pekka Paasivaara, CEO of Homag Group AG. "We want to continue to build on this cooperation and expand the worldwide sale of Benz products. To speed up important investment decisions, we have decided to acquire the remaining shares."

In the process of the Homag Group's recent increase in its investment in Benz, Günther and Martin Zimmer have resigned as managing directors of Benz GmbH Werkzeugsysteme. As a result, Marco Huber is now sole managing director.

In 2009 the Homag Group acquired a 51% stake in Benz GmbH Werkzeugsysteme, one of the world's leading manufacturers and suppliers of components and systems for tool and machine technology.

Despite the change in the majority shareholding, Benz will remain an independent company, and the Benz brand will be preserved.

World’s tallest timber building (80m) will be build in Norway

Posted on by GWMI Admin

Mjøstårnet is the name of the next key project in timber construction. The over 80m high building arises in Norwegian Brumunddal. Arthur and Anders Buchardt of AB Invest AS and contractor HENT AS have entered into a turnkey contract to build Mjøstårnet in Brumunddal. This will be the world's tallest wooden building.

At the same time, HENT AS has entered into a contract with Moelven Limtre AS. The company in Moelv will be the turnkey subcontractor and will supply glulam, Kerto and cross laminated timber for the tower structure and swimming hall in the project.

Mjøstårnet's overall size will be around 15,000 m2, and will span 18 storeys and include apartments, a hotel, offices, a restaurant and associated common areas. The total height will be more than 80 metres. The value of the contract for HENT AS is around NOK 500 million ~ EUR 56 million), excluding VAT. For Moelven Limtre the contract with HENT AS is worth NOK 47 million (~ 5.3 million EUR)., excluding VAT.

Planning is well under way, and work at the building site will start on 1 April 2017.

“The main structure is based on glulam, with slab elements consisting of a combination of glulam and Kerto, and façades as wooden elements. This is a response to the "green shift," and proof that wood is a material that can compete with traditional solutions in high-rises too, enabling climate-friendly building as long as one has the right mindset,” says client Arthur Buchardt.

CEO Rune Abrahamsen of Moelven Limtre AS, Rune Abrahamsen explains that Mjøsparken will consist of glulam in columns, beams and diagonals, and cross laminated timber in elevator shafts and stairwells.

“The tallest building – the one we call Mjøstårnet – will have wood-based slab elements in the bottom ten storeys in the form of Moelven's Trä8 elements. Moelven Limtre will supply and install all wooden structures. Installation will take place from September 2017 and until April 2018. Sweco AS in Lillehammer is responsible for planning and design of the structure for Moelven Limtre. Ringsaker Takelementer is assembling the wood elements for Moelven Limtre AS,” Abrahamsen says

Swiss wood pellets price grows in February, but is lower yoy

Posted on by GWMI Admin
The price for pellets in Switzerland increased by 1.73% during February 2017, reaching 381.6 CHF/t (358.51 EUR/t), as compared to the previous month.
Yet, the price decreased by -1.16% as compared to the February 2016.
Prices vary depending on the delivery quantity between 369.34 CHF / t (346.99 EUR / t) for an eight tons purchase to 395.93 CHF / t (371.97 EUR / t) for a three tons purchase.
Larger quantities for commercial customers currently cost 354.48 CHF / t (333.03 EUR / t) for a 17 tonnes purchase.

Price of wood pellets in SwitzerlandCHF/tonne February 2017 January 2016 February 2017
3 tonnes purchase quantity 398.9 388.25 395.93
5 tonnes purchase quantity 384.67 373.47 379.49
8 tonnes purchase quantity 374.63 363.44 369.34
Average price 386.1 375.1 381.6

 

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