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Sustained growth expected in the US wood industry in 2017

US wood products industry experts forecat moderate growth in housing starts for 2017, while the construction market already accounts for more than 80% of wood products sales.

Industry officials have tracked the esidential real estate and construction markets and remain optimistic on the favorable outcome for this year.  Continue reading "Sustained growth expected in the US wood industry in 2017"

Demand in China sustains continuous growth for New Zealand export log prices

New Zealand’s forestry sector will encounter an even larger growth in the market due to the ongoing demand from Asia. Continue reading "Demand in China sustains continuous growth for New Zealand export log prices"

Sawn timber production cuts expected from major Swedish sawmills like Södra and Rörvik in 2017

The sawn timber output  in Sweden is forecast to decrease by an estimated 450,000 m³ per year in 2017. Continue reading "Sawn timber production cuts expected from major Swedish sawmills like Södra and Rörvik in 2017"

Resolute reports higher earnings in the wood products segment for 2016

Resolute Forest Products Inc.reported a net loss of $45 million fourth quarter, a significant improvement over the $214 million loss during the same period in 2015. Sales were flat at $889 million in the quarter.

For the year, Resolute reported a net loss of $81 million, one-third of the net loss of $257 million reported in 2015. Annual sales were $3.5 billion, down $100 million, or 3 percent. Excluding special items Resolute would have reported net income of $4 million.

Most of the losses are attributable to paper and packaging products. "In wood products, we maintained our volume gains from prior quarters and recorded one of our strongest annual performances in recent years," says Richard Garneau, president and chief executive officer.

The wood products segment generated operating income of $17 million in the quarter, compared to $36 million against the previous quarter. While prices slipped by $4 per thousand board feet to $327, the delivered cost increased by $29 per thousand board feet, prompted by seasonally higher fiber usage and higher operating expenses. Shipments were 503 million board feet during the quarter, very close to the third quarter.

For 2016, Resolute's wood products segment reported operating income of $69 million, up significantly from the $2 million reported for the previous year. This performance is explained mainly by the weaker Canadian dollar, which resulted in $32 per thousand board feet drop in delivered cost.

Central/West Africa: Western markets are quiet but Asian logs & sawnwood demand is lively

Central/West African producers report that all European markets are quiet and any purchases are only for replacement of stocks and tend to be for only the faster moving timbers. The weak demand in Europe has resulted in some price weakness for species which are most susceptible to even small shifts in demand.
Continue reading "Central/West Africa: Western markets are quiet but Asian logs & sawnwood demand is lively"

Central/West Africa: Western markets are quiet but Asian logs & sawnwood demand is lively

Central/West African producers report that all European markets are quiet and any purchases are only for replacement of stocks and tend to be for only the faster moving timbers. The weak demand in Europe has resulted in some price weakness for species which are most susceptible to even small shifts in demand.

Continue reading "Central/West Africa: Western markets are quiet but Asian logs & sawnwood demand is lively"

Manufactured housing in the United States to reach 85,000 Units in 2020

In 2020, US manufactured housing shipments are expected to reach 85,000 units, declining as a share of total single-family housing starts and manufactured housing placements.

Manufactured housing’s share of all single-family housing units was elevated in the 1990s due to very accessible credit, but declined through 2005 as the industry became more wary of its former easy credit policies, while lower interest rates and new financial instruments for subprime borrowers made conventional housing a more attractive option for many home buyers, Continue reading "Manufactured housing in the United States to reach 85,000 Units in 2020"

Eastern Europe’s wood pellet production is growing dynamically

The pellet economy worldwide is steady and ready to double its percentage rate. During 2015, almost 30 million tonnes of pellets were produced worldwide.

However, depending on the region, the growth is often very different. This became clear in the market reports on the pellet day of the European Biomass Conference in Graz. While growth in Central Europe has slowed, production in Eastern Europe is growing dynamically. Pellet production is particularly booming in the Balkans and the Baltic States. Continue reading "Eastern Europe’s wood pellet production is growing dynamically"

Siempelkamp to deliver new multi-daylight press for Weyerhaeuser

Siempelkamp received its largest order just at the end of 2016, when Weyerhaeuser ordered a multi-daylight press for OSB production on December 21, 2016.

The new 8´ x 24´ 16-opening press will replace a similar press from the 1980s. The press will be integrated into the existing production line at the Grayling, Michigan location.

The contractual scope of supply includes the multi-daylight press with the necessary loader and unloader unit. The press and its components as well as the complete hydraulic and electrical systems, will be designed and built in Krefeld, Germany. The scope of supply includes automa-tion, drive and control technology including Dahmos® fast trending software.

Delivery to site Grayling is scheduled for the first quarter in 2018 for installation and start-up of the equipment in summer 2018. The new press will manufacture OSB with a thickness ranging from 6.3 – 31.8 mm.

Weyerhaeuser is one of the largest international forestry groups in the world and owns more than 13 million acres (5.25 million hectares) of timberland in the USA and manages an additional 14 million acres (5.65 million hectares) of forest located in Canada.

Northeastern US sawmills evaluate installation of pellet mills as outlet for woodchips and residues to mitigate impact of pulp, paper and biomass mill closures

Sawmills from Northeastern US currently evaluate to install pellets mills as outlet for woodchips and residues to mitigate impact of pulp, paper and biomass mill closures. Continue reading "Northeastern US sawmills evaluate installation of pellet mills as outlet for woodchips and residues to mitigate impact of pulp, paper and biomass mill closures"

Russia’s sawn softwood exports increased by 11% in 2016; deliveries to China +37%; Segezha Group top exporter

The exports volumes for sawn softwood products from Russia increased by 11% up to 24.8 million m3 (+ 2.4 million m3) in 2016. Continue reading "Russia’s sawn softwood exports increased by 11% in 2016; deliveries to China +37%; Segezha Group top exporter"

Biewer sawmill in Mississippi started production

Biewer Lumber has announced that its newest sawmill, located in Newton, Miss., is officially up and running. The state-of-the-art sawmill began shipping January 19. Biewer – Newton, LLC will produce an estimated 250 million board feet per year, with a focus on dimensional lumber and timbers. Total investment in the sawmill amounted to US85 million.

With this new production, the mill will allow Biewer to expand mill production in the South -- an area with abundant fiber supply -- with strong support from both local and state government.

The Newton facility brings the total number of Biewer sawmills to five. The Biewer family of companies also includes three treatment and distribution centers and a full-service logistics company.

BID Group was selected by Biewer Lumber  to deliver the state-of-the-art turnkey mill for the Newton facility. The Newton sawmill features a state-of-the-art technologies specifically designed, supplied, and installed by the BID Group including a Comact optimized log bucking system, a Comact saw line with profiling systems, and a fully-automated mill outfeed. The planer mill is equipped with the all-new Miller high speed planer, a Comact GradExpertTM and a fully-automated mill outfeed specialized in cut-in-two handling. Lumber drying utilizes continuous kiln technology provided through two Deltech dual path kilns.

About

Headquartered in St. Clair, Mich., Biewer Lumber manufactures and distributes lumber and building materials for use by contractors, builders, and do-it-yourselfers. Biewer customers include retail lumber yards, home centers, and manufacturers throughout the eastern U.S. Products include lumber for construction, secondary manufacturing, and packaging; treated lumber for outdoor projects such as decks, patios, and docks; deck essentials and accessories; fencing; poles and pilings; fire retardant treated lumber for commercial construction; and more.

India: More interest in sawnwood imports than logs

An analysis of India’s log and sawnwood imports shows that, over the past five years, there has been a steady decline in log imports but that, over the same period sawnwood imports have grown almost 200%.

The Indian ‘Ply Reporter’ magazine says that Imports of good quality sawnwood of appropriate dimension leads to a reduction of residues which is a key concern of door manufacturers, construction companies and furniture makers.

Initially, sawnwood imports of decorative species were imported from America, says Ply Reporter, but increasing volumes now come from Malaysia, Indonesia and Myanmar and this trade has been given a boost by the reduction in import duties arising from agreements between ASEAN countries and India.

Brazil: Timber industry exported higher volumes, but earned less

Due to a year marked by uncertainties in the domestic economy, Brazil’s timber industry ended 2016 with lower revenues despite an increase in export volumes. Pine plywood export volumes in 2016 were 1,730,467 cu.m, the highest volume over the past 10 years and a 16% increase compared to the volume shipped in 2015. The monthly average plywood shipment was 144,206 cu.m, 24,000 cu.m more per month than in 2015.

Among the many destinations for Brazil’s pine plywood in 2016 were: the United States (28%), the United Kingdom (16%), Belgium (11%), Germany (9.7%) and Mexico, almost 5%.

The volume of pine sawnwood exported in 2016 totalled 2,166,555 cu.m.

A large volume of pine sawnwood is consumed domestically mainly in civil construction. Among the export buyers were the United States ( 42%), China, (13%) and Saudi Arabia, almost 7%.

Pine veneer exports in 2016 were 30% up year on year reaching 70,514 cu.m 2016. The main destinations were Malaysia (40%), South Korea, (24%), and China, (11.5%).

In 2016, 62,803 cu.m of tropical plywood were exported with the main markets being Argentina (26%), the United States, (17%), the United Kingdom, (12%), Italy, (5%) and the Dominican Republic a further 5%.

The volume of tropical sawnwood exported in 2016 reached 657,576 cu.m and the main markets were the United States (21%), India (8.7%), Netherlands (8.4%), China (8%) and Vietnam, 5.6%.

According to the Brazilian Association of Mechanically Processed Timber Industry (ABIMCI), one of the major challenges that the industry will face in 2017 will be to improve business strategies in order to protect themselves against threats that may come from the domestic economy, including rising costs of electricity, logistics and raw material inputs.

Dubai Wood Show waits for 300 exhibitors from 7-9 March 2017

Dubai Wood Show's 12th edition will feature 300 exhibitors from 100 participating countries from 7-9 March 2017.

Middle East’s premier timber trade fair, Dubai International Wood & Wood Machinery Show, is set to break records as the biggest wood and woodworking machinery trade show in the Middle East.

Organizers of the 12th edition reveal an optimistic outlook for the timber industry, following a recent report from Deloitte that highlights AED 7.34-trillion GCC construction projects are in the pipeline with Saudi, UAE and Qatar taking the top three leads.

Dawood Al Shezawi, CEO, Strategic Marketing & Exhibitions, organizer’s of the Dubai Wood Show says: “The Dubai Wood Show grows from strength to strength each year. We are excited to welcome exhibitors and visitors from America, China, Italy, Malaysia, Canada, Sweden and Turkey and from the GCC. The exhibition has become a major platform for the regional and international wood and woodworking industries and customers in the Middle East to meet and source their requirements from global suppliers of high quality wood products and accessories.”

A key component of the upcoming Dubai WoodShow is our hosting of the first Middle East ATIBT (International Technical Tropical Timber Association) Conference in Dubai. This major timber conference will discuss timber legality, future of tropical Forest, human resource development and Logistics & transportation,” he added.

Participants will also share new technologies and renewable products, display sustainability solutions in the timber industry, and request governments, civil society, and the private sector to act as one in safeguarding our forests as our most important resource.

The 2017 edition will occupy an area of 15,000 sqm offering the latest timber products and tools and a chance to learn from leading international experts and woodworking industrial specialists.

Visitors can see live demonstrations of wood carving, turning, scroll work, fine woodworking, gourd art and pyrography at the three-day show.

The previous edition of Dubai Wood Show, organized by Strategic Marketing & Exhibitions, attracted 8,000 high quality trade professionals from 98 countries and 260 local and international exhibitors from the wood and woodworking machinery industry. The top 5 visiting countries were UAE, Kuwait, Pakistan, India and Oman. Participating exhibitors included 500 brands, suppliers and manufacturers.

Swedish pine collection for Chinese market exhibited at fair in Stockholm

The Stockholm Furniture & Light Fair will take place from 7th to 11th of February 2017 and will exhibit the #DesigninPine, a unique collaborative project between the industry body Swedish Wood, Carl Malmsten Furniture Studies (Malmstens), Linköping University and two Chinese furniture manufacturers. Continue reading "Swedish pine collection for Chinese market exhibited at fair in Stockholm"

Forest fires in Chile will cost the government $333 million

The extreme forest fires in Chile are responsible for the death of 11 people and the destruction of about 1,500 homes. This will cost the government $333 million.

The government will reallocate $100 million from the current budget to mitigate the effects of the blazes, while another $233 million will be taken out of a rainy day fund that the government maintains for such situations, Reuters quoted Finance Minister Rodrigo Valdes.

"Those are the costs that the state will have to assume in the preliminary estimate that we're doing," Valdes said. "That situation can change when we have more information, and it will depend on how the wildfires evolve."

The fire destroyed over 580,000 hectares, while firefighters from Argentina, Brazil, Colombia, France, Japan, Mexico, Panama, Peru, Portugal, Spain, the United States and Venezuela came to help in the fight with almost 41 active fires in the area.

As Reuters reported, forest fires are a regular feature of Chile's hot, arid summers, but a nearly decade-long drought combined with historically high temperatures have created tinder-like conditions in the nation's central regions.

The forestry industry in Chile reported $350 million in losses as of Monday, but the estimates do not include damages to small and medium sized producers, nor private donations. Yet, there is no need for the government to issue debt as to help with the aid effort.

The potential impact on economic growth is still under investigation.

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