In November, Canada Wood China presented its approach to developing alternative markets for lumber to its first group of VIP guests, Canadian Senators Terry M. Mercer, Jean-Guy Dagenais, Raymonde Gagné, Victor Oh, Claudette Tardif, Pana Merchant and Ghislain Maltais. Continue reading "Canada Wood seeks new possibilities in the Chinese construction sector"
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EU sets arguments for lifting the Ukrainian moratorium roundwood exports
The EU delegation to Ukraine claims that the current ban on the export of wood isn’t helpful for protecting the forests of the country, but to the serve the needs of some interests in the wood processing industry. Continue reading "EU sets arguments for lifting the Ukrainian moratorium roundwood exports"
Analysis of the Swedish forestry sector’s carbon balance to support Climate Roadmap 2050
As a commitment to the EU initiative Roadmap 2050 for climate, transport and energy, The Swedish government has drawn a plan for reaching zero net greenhouse gas emission by 2050.
Yet, for achieving such an important goal, some considerable efforts will have to be made. A bio-based economy is one of the key factors, which would have to be based on renewable raw materials, with sustainable production and use.
An analysis made by Linnaeus University shows that the Swedish forest and forestry sector will thus play a major role in the work, not only owing to the forest's ability to assimilate carbon dioxide but also with a smarter use of forest resources. New biomaterials can also be developed with new solutions and perspectives.
"Total carbon balance of Swedish forestry sector: Evaluate guidelines for climate roadmap 2050" is the name of the new project that the university will start in January 2017, as a basis for the road toward reaching the zero net greenhouse gas emissions by 2050. The aim of the project is to evaluate the actions and policies described in the climate roadmap and the effect on the total carbon balance of the Swedish forestry sector.
Leading experts will evaluate the nature of the include forest ecosystems, forest products' carbon stock, material and energy use of forest based raw materials, waste and recycling of used forest products.
"To understand and describe the role of forests in climate benefits, it is important that the analysis includes the forestry sector as a whole. Then we can clarify not only how forestry affects the amount of carbon sequestered and stored in forests, but also how biofuels and other forest products can replace fossil fuels and energy-intensive products such as concrete and aluminum," says Bishnu Chandra Poudel, researcher at the Department of Forestry and Wood Technology at Linnaeus University and project leader.
Based on the abundant supply of forests in Sweden, it is important to know how much forest products are required to meet the needs of different sectors and how these can contribute to achieving the climate roadmap 2050, says the analysis.
The project will be on for 3 years and has received SEK 2,997,000 in a grant from Formas' fund for research and development projects to research leaders of the future in 2016.
Only marginal increase in EU tropical sawn imports
EU imports of tropical sawn increased by 2% to 810,900 cu.m in the first nine months of 2016. Imports from Cameroon, the largest supplier, increased 29% to 300,200 cu.m.
There was also significant growth in imports from Gabon (+27% to 89,700 cu.m) and Congo (+22% to 47,000cu.m), a reversal of fortune for both countries which lost share in the EU market in 2015.
These gains offset a large fall in imports from Malaysia (- 35% to 112,500 cu.m), Brazil (-15% to 84,600 cu.m) and Ivory Coast (-29% to 44,000 cu.m).
EU imports of tropical logs stable at low level
After recovering a little ground in 2015, EU imports of tropical hardwood logs have remained static in 2016. Imports during the first nine months of 2016 were 127,200 cu.m, exactly the same period the previous year. However, there was a shift in the source of supply. EU imports of tropical logs increased from Congo (+13% to 31,600 cu.m), Central African Republic (+24% to 17,500 cu.m), and Liberia (+21% to 5,500 cu.m).
These gains offset declining imports from Cameroon (- 13% to 26,500 cu.m) and Equatorial Guinea (-19% to 8,000 cu.m). Imports from DRC remained stable at 27,100 cu.m.
Slide in EU tropical decking imports
EU imports of tropical mouldings (which includes both interior mouldings and exterior decking products) were 166,900 cu.m in the first nine months of 2016, 3% less than the same period in 2015.
Imports decreased from all the major supply countries including Indonesia (-1% to 73,000 cu.m), Brazil (-5% to 57,600 cu.m), Malaysia (-12% to 12,600 cu.m) and Peru (- 6% to 4,900 cu.m).
However, deliveries from several African countries, including Gabon, Cote d’Ivoire and Cameroon, increased from a low base.
Chinese timber market prices in September-October 2016
This index contains the most update timber prices of selected 2 main distribution centres of imported logs and lumber in China:
Price information in Shanghai Furen Timber Market(source: China Timber Information Magazine)
Exchange rate:1Euro=7.36 CNY
Data collecting date: 25th Oct.2016
Sep. - oct. '16
Imported sawntimber |
||||||||||
Standard name |
Local name |
Specification |
Grade |
Origin |
Prices range (September-October) (Euro/m3) |
Price range (September-October) (RMB/m3) |
Against August |
August price |
||
Min |
Max |
Min |
Max |
Trend |
Range |
|||||
Okume |
Okume |
A(KD) |
Africa |
434.78 |
570.65 |
3200 |
4200 |
Same |
3200/4200 |
|
Ebiara |
Ebiara |
A(KD) |
951.09 |
1154.89 |
7000 |
8500 |
Same |
7000/8500 |
||
Sapeli |
Sapeli |
A(KD) |
652.17 |
883.15 |
4800 |
6500 |
Same |
4800/6500 |
||
Zingana |
Zingana |
A(KD) |
747.28 |
1154.89 |
5500 |
8500 |
Same |
5500/8500 |
||
Bubinga |
Bubinga |
A(High mountains) |
1902.17 |
2173.91 |
14000 |
16000 |
Same |
14000/16000 |
||
Bubinga |
Bubinga |
A(Zambia) |
1222.83 |
1358.70 |
9000 |
10000 |
Same |
9000/10000 |
||
African Mahogany |
African Mahogany |
A |
611.41 |
1019.02 |
4500 |
7500 |
Same |
4500/7500 |
||
Makore |
Makore |
A |
1019.02 |
1290.76 |
7500 |
9500 |
Same |
7500/9500 |
||
Ayous Wawa |
Wawa |
FAS |
489.13 |
584.24 |
3600 |
4300 |
Same |
3600/4300 |
||
Ayous |
FAS |
543.48 |
611.41 |
4000 |
4500 |
Same |
4000/4500 |
|||
Beli |
Beli |
A(KD) |
543.48 |
720.11 |
4000 |
5300 |
Same |
4000/5300 |
||
Oak |
Red oak |
2" |
FAS |
N.America |
1059.78 |
1195.65 |
7800 |
8800 |
Same |
7800/8800 |
1" |
FAS |
706.52 |
883.15 |
5200 |
6500 |
Same |
5200/6500 |
|||
2" |
1 com |
679.35 |
883.15 |
5000 |
6500 |
Same |
5000/6500 |
|||
1" |
1 com |
543.48 |
665.76 |
4000 |
4900 |
Same |
4000/4900 |
|||
White oak |
2" |
FAS |
1331.52 |
1630.43 |
9800 |
12000 |
Same |
9800/12000 |
||
1" |
FAS |
951.09 |
1195.65 |
7000 |
8800 |
Same |
7000/8800 |
|||
2" |
1 com |
923.91 |
1086.96 |
6800 |
8000 |
Same |
6800/8000 |
|||
1" |
1 com |
611.41 |
815.22 |
4500 |
6000 |
Same |
4500/6000 |
|||
White Ash |
White Ash |
2" |
FAS |
951.09 |
1114.13 |
7000 |
8200 |
Same |
7000/8200 |
|
1" |
FAS |
815.22 |
951.09 |
6000 |
7000 |
Same |
6000/7000 |
|||
2" |
1 com |
747.28 |
828.80 |
5500 |
6100 |
Same |
5500/6100 |
|||
1" |
1 com |
638.59 |
692.93 |
4700 |
5100 |
Same |
4700/5100 |
|||
Hard Maple |
Hard maple |
2" |
FAS |
951.09 |
1154.89 |
7000 |
8500 |
Same |
7000/8500 |
|
1" |
FAS |
923.91 |
1059.78 |
6800 |
7800 |
Same |
6800/7800 |
|||
Soft Maple |
Soft Maple |
1" |
1 com |
815.22 |
883.15 |
6000 |
6500 |
Same |
6000/6500 |
|
Cherry |
Cherry |
2" |
FAS |
1059.78 |
1290.76 |
7800 |
9500 |
Same |
7800/9500 |
|
1" |
FAS |
883.15 |
1086.96 |
6500 |
8000 |
Same |
6500/8000 |
|||
Black Walnut |
Black Walnut |
2" |
FAS |
1902.17 |
2309.78 |
14000 |
17000 |
Same |
14000/17000 |
|
1" |
FAS |
1494.57 |
1793.48 |
11000 |
13200 |
Same |
11000/13200 |
|||
Red Alder |
Red Alder |
JB |
326.09 |
434.78 |
2400 |
3200 |
Same |
2400/3200 |
||
CUS |
529.89 |
584.24 |
3900 |
4300 |
Same |
3900/4300 |
||||
SUP |
652.17 |
706.52 |
4800 |
5200 |
Same |
4800/5200 |
||||
Yellow Poplar |
Yellow Poplar |
1" |
FAS |
543.48 |
584.24 |
4000 |
4300 |
Same |
4000/4300 |
|
2" |
FAS |
570.65 |
652.17 |
4200 |
4800 |
Same |
4200/4800 |
|||
Yellow Meranti |
Yellow Meranti |
A |
Southeast Asia |
489.13 |
529.89 |
3600 |
3900 |
Same |
3600/3900 |
|
Red Meranti |
Red Meranti |
A |
516.30 |
557.07 |
3800 |
4100 |
Same |
3800/4100 |
||
Champaka |
Golden teak |
Assorted |
Yunnan/Mynmar |
951.09 |
1154.89 |
7000 |
8500 |
Same |
7000/8500 |
|
Merbau |
Merbau |
2" |
Assorted |
Indonesia |
951.09 |
1290.76 |
7000 |
9500 |
Same |
7000/9500 |
Beech |
Beech |
AA |
Europe |
557.07 |
638.59 |
4100 |
4700 |
Same |
4100/4700 |
|
heartwood |
475.54 |
543.48 |
3500 |
4000 |
Same |
3500/4000 |
||||
Ash |
Ash |
A |
Russia |
706.52 |
883.15 |
5200 |
6500 |
Same |
5200/6500 |
|
Elmwood |
Elmwood |
A |
611.41 |
815.22 |
4500 |
6000 |
Same |
4500/6000 |
||
Myanmar |
Teak |
Wooden door timber |
Myanmar |
4279.89 |
4891.30 |
31500 |
36000 |
Same |
31500/36000 |
|
Decorative wood moulding timber |
2445.65 |
2581.52 |
18000 |
19000 |
Same |
18000/19000 |
||||
staircase timber |
2418.48 |
2690.22 |
17800 |
19800 |
Same |
17800/19800 |
||||
Kitchen cabinet timber |
1834.24 |
2173.91 |
13500 |
16000 |
Same |
13500/16000 |
||||
Outdoor furniture timber |
1562.50 |
1766.30 |
11500 |
13000 |
Same |
11500/13000 |
||||
Price information in Guangdong Yuzhu Timber Market(source: China Timber Information Magazine)
Exchange rate:1Euro=7.36 CNY
Exchange rate Date: 25th Oct.2016
Data collecting date: 25th Oct.2016
Sawn Timber |
||||||||
Species |
Grades |
Prices range (Euro/m3) |
Price range (RMB/m3) |
Against August |
August price |
|||
Origin |
Min |
Max |
Min |
Max |
Trend |
Range |
||
North America |
Cherry |
FAS-2" |
1222.83 |
1494.57 |
9000 |
11000 |
Down |
10000/11500 |
FAS-1" |
1154.89 |
1358.70 |
8500 |
10000 |
Down |
9000/10000 |
||
White Ash |
A |
788.04 |
951.09 |
5800 |
7000 |
Down |
6500/7500 |
|
Black Walnut |
FAS-2" |
2038.04 |
2445.65 |
15000 |
18000 |
same |
15000/18000 |
|
FAS-1" |
1630.43 |
1970.11 |
12000 |
14500 |
same |
12000/145000 |
||
AB(1"-2") |
951.09 |
1086.96 |
7000 |
8000 |
Down |
7500/8500 |
||
Hard Maple |
FAS |
1222.83 |
1358.70 |
9000 |
10000 |
Down |
9500/10500 |
|
Soft Maple |
FAS |
1086.96 |
1154.89 |
8000 |
8500 |
Down |
8500/9000 |
|
White Oak |
FAS |
1019.02 |
1766.30 |
7500 |
13000 |
Down |
8000/13000 |
|
Red Oak |
FAS |
883.15 |
1127.72 |
6500 |
8300 |
Down |
7000/8700 |
|
SPF |
B |
271.74 |
285.33 |
2000 |
2100 |
Up |
1800/1900 |
|
Pine Finland |
A |
353.26 |
394.02 |
2600 |
2900 |
Down |
2800/3000 |
|
Africa |
Makore |
A (imported with original packing) |
951.09 |
7000 |
Up |
6200 |
||
Zingana |
A |
1358.70 |
1698.37 |
10000 |
12500 |
Up |
9500/12500 |
|
Awora |
A |
815.22 |
910.33 |
6000 |
6700 |
Up |
5800/6500 |
|
Mezali (big) |
A |
1630.43 |
2038.04 |
12000 |
15000 |
same |
12000/15000 |
|
Keruing (Africa) |
A |
611.41 |
774.46 |
4500 |
5700 |
same |
4500/5700 |
|
Sapelli |
A(imported with original packing) |
815.22 |
855.98 |
6000 |
6300 |
same |
6000/6300 |
|
Okume |
A |
489.13 |
570.65 |
3600 |
4200 |
Down |
3700/4200 |
|
Ebiara |
A |
747.28 |
815.22 |
5500 |
6000 |
Down |
6200/6700 |
|
Bubinga |
A |
1902.17 |
2038.04 |
14000 |
15000 |
Down |
14000/15500 |
|
Acajou |
A (imported with original packing) |
855.98 |
883.15 |
6300 |
6500 |
Down |
6500/6800 |
|
Adouk d'afric |
A |
815.22 |
883.15 |
6000 |
6500 |
same |
6000/6500 |
|
Samba |
A |
611.41 |
679.35 |
4500 |
5000 |
same |
4500/5000 |
|
Europe |
European Maple |
A |
1222.83 |
1290.76 |
9000 |
9500 |
same |
9000/9500 |
Beech |
Super class |
706.52 |
5200 |
Down |
5300 |
|||
Southeast Asia |
Nyatoh |
No knot |
489.13 |
543.48 |
3600 |
4000 |
Down |
4200/4400 |
Pontianak wood |
Assorted |
1290.76 |
1426.63 |
9500 |
10500 |
same |
9500/10500 |
|
Merbau |
Super class |
951.09 |
1086.96 |
7000 |
8000 |
Up |
6500/7500 |
|
Lauan |
Super class |
611.41 |
638.59 |
4500 |
4700 |
same |
4500/4700 |
|
Camphorwood |
Super class |
679.35 |
815.22 |
5000 |
6000 |
same |
5000/6000 |
|
Camphorwood |
A |
611.41 |
679.35 |
4500 |
5000 |
same |
4500/5000 |
|
Ramin |
No knot |
815.22 |
896.74 |
6000 |
6600 |
same |
6000/6600 |
|
Yunnan/Myanmar |
Golden Teak |
Super class |
923.91 |
978.26 |
6800 |
7200 |
same |
6800/7200 |
Red Cherry |
Super class |
815.22 |
855.98 |
6000 |
6300 |
same |
6000/6300 |
|
Toon |
Super class |
516.30 |
543.48 |
3800 |
4000 |
same |
4000/4300 |
|
Teak |
Super class |
1902.17 |
2717.39 |
14000 |
20000 |
same |
14000/20000 |
|
Keruing |
Super class |
557.07 |
584.24 |
4100 |
4300 |
same |
4100/4300 |
|
Brazil: Amazon deforestation increased by 29% last year, report shows
Deforestation in the world’s largest rainforest jumped 29 percent over last year, representing a sharp increase over the historically low deforestation rate seen just five years ago and the highest level recorded in the region since 2008.
The numbers, released by Brazil’s National Space Research Institute INPE on Monday, show that 7,989 square kilometers of rainforest were destroyed between August 2015 and July 2016. The loss is equivalent to an area 135 times the size of Manhattan or the combined land mass of the American states of Connecticut and Delaware.
The data, which is still preliminary, suggests that the annual rate of primary forest loss in the Brazilian Amazon has climbed 75 percent over its 2012 level, which was the lowest since annual record keeping began in 1988.
Last year’s deforestation was concentrated in the states of Para (38 percent), Mato Grosso (19 percent), and Rondonia (17 percent), which account for much of the region’s cattle and soy production. Deforestation increased most sharply in Amazonas, which contains the largest area of primary rainforest in Brazil.
The news is unsurprising. For months, both Imazon, a Brazilian NGO, and INPE have been reporting month over month increases in forest clearing relative to the year earlier period via their respective deforestation alert systems.
Environmentalists fear that the back-to-back rise in annual deforestation represents a reversal of Brazil’s progress in curbing Amazon forest destruction.
“The increase in deforestation rates can be linked to signals from Brazil’s government that it will tolerate the destruction of the Amazon,” Cristiane Mazzetti, Greenpeace Amazon Campaigner, said in a statement. “In recent years, public environmental protection policies in Brazil have weakened. For example, very few protected areas and Indigenous Lands have been created, and a new Forest Code was approved in 2012 that gives amnesty to those who committed illegal deforestation.”
Beyond political efforts to roll back environmental regulations, rising deforestation may be fueled by dry conditions in the Amazon and a weakened Brazilian currency that makes agricultural exports more profitable.
Brazil accounts for nearly two-thirds of the Amazon rainforest, Earth’s biggest tropical forest.
US NAHB sustains that import tariffs on Canadian softwood lumber might affect US consumers
The imposition of import tariffs on Canadian softwood lumber will place a heavy burden on consumers and U.S. workers, a leading American voice for free trade with Canada says. Continue reading "US NAHB sustains that import tariffs on Canadian softwood lumber might affect US consumers"
LIGNA 2017 focuses on renewable energy solutions
The wood industry uses a lot of energy. It also produces a lot of renewable fuel in the form of waste wood, chips, and sawdust. The industry is increasingly turning to decentralised solutions for its energy requirements, with cogeneration plants among the many technologies offering major savings. All the options in this growth area will be on show at LIGNA 2017.
On site wood-based electric generation, heat-recovery and co-generation offer serious potential for harnessing this waste and achieving big reductions in operating costs. Many of these solutions offer flexible, highly controllable energy output, making them ideal both for intermittent and continuous operation.
Companies seeking solutions for generating their own power from wood-biomass can have confidence in fully automated, high-efficiency fixed-bed gasifiers of the type made by LIGNA exhibitor Fröling. Meanwhile, manufactures like Nolting Holzfeuerungstechnik have a solid track record when it comes to systems for using waste wood for carbon-neutral heating.
Then of course there are solutions – known as combined-heat-and-power or cogeneration units – that generate heat and electricity simultaneously. The market for these kinds of products is extensive, ranging from the small “Smartlbock Mini” cogeneration units provided by Burkhardt GmbH to the big turnkey plants made by Viessmann. Needless to say, both of these manufacturers will be exhibiting at LIGNA.
Added efficiencies can be achieved by generating power from the unused waste heat produced by cogeneration units. Providers like Dorset Green Machines will be at LIGNA showing how this can be achieved. Similarly, biomass boiler plants can be fitted with flue-gas heat recovery systems for added fuel savings. Three kinds of heat recovery technologies can add value to plants of all sizes, as the Kohlbach Group will be demonstrating at the upcoming LIGNA.
In wood chipping operations, vacuum extraction is an absolute must, although it does use a lot of energy. Luckily, it is now possible for the warm exhaust air from vacuum extraction systems to be filtered, recirculated and used for heating purposes. These sorts of heat recovery technologies offer major savings, as Polytechnik will be demonstrating at the upcoming LIGNA show. There, from May 22 to 26, 2017, Halls 25 and 26 and the open-air site will be home to all of the world’s leading providers of high-efficiency energy supply technologies for the wood processing and wood working industries.
European Commission proposes new system for forest biomass sustainability
Last week, the European Commission presented a proposal for new sustainability criteria for forest biomass, as a part of the Clean Energy package. European forest owners and managers are reiterating their concerns over the introduction of a new system for forest biomass sustainability. Continue reading "European Commission proposes new system for forest biomass sustainability"
Forest property prices fluctuations in Sweden might cause an overheated market
The forests price in Sweden differs very much depending on the region of the country. For example, buyers pay twice as much for the forest in Småland than in Dalarna. Continue reading "Forest property prices fluctuations in Sweden might cause an overheated market"
Välinge to launch major patent infringement lawsuit in USA against sales of LVT and WPC flooring products
Välinge has filed an action for patent infringement in the U.S. District Court for the District of Delaware against Halstead New England Corporation, part of the Halstead International Group (Halstead) and Home Depot Incorporated (Home Depot) for the wrongful importation, marketing and sales of LVT and WPC flooring products. It is believed that these products are being manufactured in China under license from the company Innovations4Flooring.
Välinge has chosen to commence legal action against these defendants due to its strong opinion that the accused LVT and WPC flooring products infringe several of Välinge’s U.S. patents relating to both locking technology and product build-up, and to protect the interest of Välinge's licensees.
In this lawsuit, Välinge asserts that the defendants by using, importing and/or selling the products in question infringe multiple claims in no less than 9 different Välinge patents duly and properly issued by the United States Patent and Trademark Office.
As Välinge stated,this lawsuit has been initiated to ensure that Välinge’s patent rights are respected and that all infringing LVT/WPC products are barred from the US market.
Slowing pace of EU tropical timber imports
EU imports of tropical timber products increased sharply between January and May this year, but slowed again in the four months to end September 2016 .
Nevertheless, the value of EU imports of tropical timber across all product groups in the first 9
months of 2016 was, at euro1.741 billion, 2% greater than the same period the previous year. So far EU imports of tropical timber in 2016 have been close to levels last seen in 2011.
In the first nine months of 2016 there was a rise in the value of EU imports of tropical sawn (+6%), joinery (+2.2%), plywood (+8.5%), veneers (+14%) and logs (+2.6%). These gains offset a decline in the value of EU imports of tropical decking and mouldings (-13.5%), charcoal (-3.2%), flooring (-20.4%) and marquetry (-7%).
Exchange rates have continued to have a significant impact on EU imports of tropical timber in 2016.
The euro-dollar rate, having fallen around 20% in the 12 months prior to April 2015, has remained relatively flat at the lower level ever since.
Meanwhile the British pound weakened by around 15% against the dollar following the Brexit vote in
June this year and remains stalled at the lower level.
This has contributed to price inflation for European importers. The dampening effect of exchange rate has only been partly offset by low freight rates which hit historical lows on many routes in the first half of 2016 in response to over-capacity in shipping and low oil prices.
Sonae’s Q3 results benefit from the merger with Arauco
Sonae Industria’s consolidated turnover for the first nine months of the year reached circa 183 million Euros, up by 4% (or by 7 million Euros) when compared to the same period of 2015, on a comparable basis.
This improvement is explained by the continued improvement in the results of Sonae's Canadian operation y.o.y., which is expected to benefit from the recent strategic investment in a fifth melamine surfacing line that will support a better product mix with a higher share of melamine faced products.
The average selling prices also contributed to this positive performance, as they kept the positive trend vs. last year. As in 1H16, the Laminates plant in Portugal showed improvements in terms of sales volumes, which grew by circa 49% y.o.y. The recurrent EBITDA for the first nine months of 2016 reached circa 32 million Euros, an increase of 7.1 million Euros (or up by 29%) when compared to same period of last year, with an implicit Recurrent EBITDA margin of 17.4% (+3.4 p.p. vs. 9M15), on a comparable basis.
Paulo Azevedo, Chairman Sonae Industria commented "Our 3Q16 results represent the first full quarter performance under the new Sonae Industria perimeter, after the conclusion of the partnership with Arauco. I am pleased to be able to report that our 3Q16 results show a continued improvement with all three main business units performing better compared to last year. This positive evolution was mainly driven by improved results in North America and by the contribution from Sonae Arauco that has had another strong quarter. Our consolidated results in the quarter show strong YoY improvement with recurrent EBITDA up nearly 30% and a margin increase of 3.7p.p to 20.9%."
Sonae Industria Results July – September 3Q
EUR million
| 2016 | 2015 | Var (%) | |
|---|---|---|---|
| Sales | 62.1 | 58.7 | 5.8% |
| EBITDA | 13.0 | 10.1 | 28.7% |
| Profit / Loss | 6.2 | -8.5 | - |
| EBITDA Margin | 20.9% | 17.2% | +3.7 p.p. |
Source: Quarterly Report
Sonae Industria Results January – September
EUR million
| 2016 | 2015 | Var (%) | |
|---|---|---|---|
| Sales | 182.6 | 175.5 | 4.0% |
| EBITDA | 31.9 | 23.8 | 34.0% |
| Profit/Loss | -21.3 | -28.2 | 24.5% |
| EBITDA Margin | 17.5% | 13.6% | +3.9 p.p. |
Source: Quarterly Report
Rising tropical timber imports by Spain and Portugal
The value of tropical timber product imports into Spain and Portugal both made gains in the first nine months of 2016, although for different reasons. Imports into Spain increased 13% to euro86 million with nearly all the gain due to rising imports of sawnwood from Cameroon, mainly comprising ayous, iroko, sapele and tali.
Sawnwood from Cameroon now constitutes nearly one quarter of the value of all imports of tropical timber into Spain as imports of other products such as Brazilian decking and veneer and African tropical logs have declined to negligible levels.
Imports of tropical timber products into Portugal increased 12% to euro51.7 million in the first nine months of 2016, but in this case most of the gain comprised hardwood chips from Brazil.
Economic conditions in Portugal remain very challenging and this is reflected in continued weakness in Portugal’s market for tropical sawn timber. Portuguese imports of this commodity, sourced primarily from Cameroon, Brazil and the Congo Republic, have been very slow throughout 2016.
Rising Portuguese imports of hardwood chips is one outcome of Portugal’s National Energy Strategy which seeks to ensure that over 30% of national energy consumption derives from renewable resources by 2020. A significant subsidy for biomass power production is now provided by the Portuguese government.
The assumption is that the biomass should derive primarily from domestic forest resources. However, demand for biomass seems to outstripping domestic supply and Portuguese energy suppliers are therefore turning more to imported wood fibre, including from Brazil.
Note that for this analysis and in the absence of better data, all hardwood products imported into the EU from Brazil are classified as “tropical”. While this is appropriate for products like decking and veneers, it may be less appropriate for chips which are more likely to derive from eucalyptus plantations than from natural tropical forests.
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Canada searches for new markets in India and China amid softwood lumber dispute with US
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Indonesia exported $25 million worth of wood to the EU since FLEGT license
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US lumber prices go $6 up at the beginning of December
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Danzer adds North American hardwood species to its offering of sliced flooring deck layers
Hardwood specialist Danzer has further increased its capacity for sliced flooring deck layers. Last month, four new drying kilns have been put into operation, at its Darlington, Pennsylvania, facility. Danzer is now able to produce sliced flooring deck layers from all major North American species close to the resource. Continue reading "Danzer adds North American hardwood species to its offering of sliced flooring deck layers"



