Article archive

John Deere reports significant drop in sales of forestry and construction equipment

Posted on by GWMI Admin

For the fourth quarter ended October 31, worldwide net sales of John Deere registered a decline of 3 percent, to  $6.520 billion, and decreased 8 percent, to $26.664 billion, for the 12 months of the company's fiscal year.

John Deere has completed a successful year in spite of continuing weakness in the global agricultural and construction equipment sectors, said Samuel R. Allen, chairman and chief executive officer of John Deere.

John Deere's construction and forestry sales decreased 5 percent for the quarter and 18 percent for the year, largely as a result of lower shipment volumes and higher sales-incentive costs. Continue reading "John Deere reports significant drop in sales of forestry and construction equipment"

Importing wood from Myanmar into the EU is illegal, Swedish Court rules

Posted on by GWMI Admin

Swedish Administrative Courts have recently ruled that a certificate issued by the Myanmar Forest Products Merchants’ Federation (MFPMF) did not provide adequate proof that a shipment of teak imported into Sweden had been legally harvested.

The court’s verdict follows nearly a year of injunctions from Swedish authorities and an appeal by the company, which had imported the teak via a Singapore trader in violation of the EU Timber Regulation (EUTR).

The company in question, Almtra Nordic, was fined 17,000 Swedish kronor (US$1,700) and has informed Sweden’s EUTR regulator that under current circumstances it will no longer source wood from Myanmar. Continue reading "Importing wood from Myanmar into the EU is illegal, Swedish Court rules"

New Zealand to upgrade free trade agreement with China; new boost for timber industry

Posted on by GWMI Admin

New Zealand’s Wood Council is planning to upgrade the country’s free trade agreement with China and the forestry exports. Continue reading "New Zealand to upgrade free trade agreement with China; new boost for timber industry"

Dieffenbacher to deliver second MDF plant for S.P.B in Thailand

Posted on by GWMI Admin

S.P.B. Panel Industries Co. Ltd. broke into the wood-based panels market in 2006 with the commissioning of a Dieffenbacher particle board plant. Now, a new THDF/MDF plant will be installed on the same site in Surat Thani, Thailand. Based on its excellent experience with the first project, S.P.B. has selected Dieffenbacher once again. Continue reading "Dieffenbacher to deliver second MDF plant for S.P.B in Thailand"

Patchy and uneven growth in ECE region hardwood consumption

Posted on by GWMI Admin

Production of sawn hardwood in the ECE region increased by 1.8% to 40.7 million cubic metres in 2015, rising in all three sub-regions (Europe, North America and CIS).

Consumption of sawn hardwood in the ECE region also increased to 35.6 million cubic metres in 2015, a 0.9% rise compared to 2014 and the fourth consecutive year of increase. Falling consumption in Europe and the CIS in 2015 was offset by rising consumption in North America.

It was reported that European consumption of sawn hardwood decreased 2.8% to 12.2 million cubic metres in 2015, mainly due to a significant decline in Turkish consumption. Consumption in EU28 countries increased by 0.8% in 2015, to 9.5 million cubic metres, benefiting from (albeit slow) growth in key sectors of the EU economy, including construction and furniture.

There has been little change in European hardwood fashion trends which remain heavily oriented towards the “oak look”. For example, oak is now used in over 70% of wood flooring manufactured in Europe while the share of tropical woods continues to decline and other temperate species account for only a small share.

Such is the strength of demand for oak in Europe, that supplies are becoming restricted and prices have been rising sharply this year.

According to COFFI, sawn hardwood consumption in the CIS sub-region fell 25.9% to 1.46 million cubic metres in 2015 following a 3.6% fall the year before. However, hardwood production in the CIS increased 2.3% to 3.4 million cubic metres, with exports taking up the slack.

The weakness of the rouble encouraged a 50.5% increase in sawn hardwood exports by the Russian Federation to 1.4 million cubic metres. The Russian Federation exported 1.2 million cubic metres to China in 2015, 49% more than in 2014 and by far the highest level ever recorded.

Brazilian company builds $1.5 million wood pellet factory

Posted on by GWMI Admin

Brazilian company Butia Industria e Comercio de Pellets Ltda will invest $1,54 million in the construction of a pellet factory in Brazil's Rio Grande do Sul state. Continue reading "Brazilian company builds $1.5 million wood pellet factory"

NZ log export prices reach third straight month increase

Posted on by GWMI Admin

Export log prices in New Zealand increased in November, at a third straight month. The low shipping rates and the demand from China helped the prices go up. Continue reading "NZ log export prices reach third straight month increase"

Swedish sawmilling group Vida to upgrade Moelven’s former sawmill in Nössemark

Posted on by GWMI Admin

VIDA Nössemark is purchasing a complete RS-BoardScannerQ system for quality sorting and strength grading of planed boards.

The order includes an installation of a complete RS-BoardScannerQ system for quality sorting of planed boards and also the newly developed and certified touchless strength grading application RS-StrengthGrader. The commissioning is planned for the summer of 2017.

”This is an important order for us and yet another success for our investment in the RS-BoardScannerQ product”, says Peter Johansson, Managing Director of Image Systems AB. ”It's especially gratifying that VIDA now chooses the RS-BoardScannerQ as one of the most important components in building the world's highest performing production line for quality sorting and strength grading for planed boards. It's also great for us to move to processing wood in planer mills", Peter Johansson continues.

”We have concluded that, at present, the RS-BoardscannerQ is the most complete system on the market. It's very suitable in our effort to build the fastest and most advanced production line for planing", says Jonas Axelsson, Project Manager and responsible for VIDA's investment in Nössemark. ”Important factors are also the possibility for touchless strength grading in speeds of up to 200 pieces/minute and the modern user interface, which will get an automatic connection to our order management systems", Jonas Axelsson continues.

RS-BoardScannerQ is a fully automated transverse inspection system for boards and planks in green and dry sorters and planers. The system performs a 4-sided inspection without the need to flip the boards over. The measurement techniques combine tracheid (fibre), dimensional and vision data. The systems offers new possibilities in quality sorting in sawmills owing to the sophisticated measuring techniques and the unique and touchless  strength grading application.

Back in December 2015, VIDA AB acquired the Swedish subsidiary of Moelven - Moelven Nössemark TRA AB. Moelven's Nössemark sawmill used to produce sawn timber for moulding producers, building material producers and joinery companies.

About VIDA

With some 900 employees at 16 production facilities, VIDA AB is Sweden's largest privately owned sawmill company. Production is primarily focused on structural timber for a large assortment of different markets. Around 85% of production is exported to Europe, USA, Australia, Africa and Asia. Sales of sawn wood products are via a sales company, VIDA Wood.

China: Price of wood products in main timber markets

Posted on by GWMI Admin

The report below contains the latest prices of logs and sawnwood from main timber markets in China. 

1 Yuan=0.1365 EUR
1 Yuan=0.1452 US$
Guangzhou Yuzhu International Timber Market

Logs yuan/cu.m.
Merbau Dia. 100 cm+ 4-6000
Bangkirai Dia. 100 cm+ 3200-4200
Kapur Dia. 80 cm+ 2700-3000
Ulin All grades -
Lauan Dia. 60 cm+ -
Kempas Dia. 60 cm+ 2200-3000
Teak Dia. 30-60 cm+ 8500-11500

 

Logs yuan/cu.m.
Greenheart Dia. 40 cm+ -
Purpleheart Dia. 60 cm+ 3000-4500
Pau Rosa Dia. 60 cm+ 2000-2500
Ipe Dia. 40 cm+ 3200-3600
Yuan per tonne
Cocobolo All grades 27000-40000

 
Sawnwood

Sawnwood yuan/cu.m
Makore Grade A 7000
Zebrano Grade A 9500-12500
Walnut Grade A 9500-18000
Sapelli Grade A 7000-7500
Okoume Grade A 4300-4700
Padauk Grade A 16500-18000
Mahogany Grade A 7000-7500

 

Sawnwood yuan/cu.m
Ulin All grade 9000-10000
Merbau Special grade 8600-9500
Lauan Special grade 4300-4500
Kapur Special grade 5000-6000
Teak Special grade 14000-20000

 

Sawnwood yuan/cu.m
Maple Grade A 9000-9500
Beech Special grade 5200
Ash no knot 5700-6300
Basswood no knot 2700-3300
Oak no knot 5300-5700
Scots pine no knot 2100

 

Sawnwood yuan/cu.m
Cherry Fas 2 inch 9000-11000
Black walnut Fas 2 inch 15000-18000
Maple Fas 8200-10000
White Oak Fas 7500-13000
Red Oak Fas 6500-8300
Finnish pine Grade A 2600-2900

 
Shanghai Furen Forest Products Market Wholesale Prices

Logs

Logs- All grades 000's yuan/tonne
Bois de rose 130-250
Red sandalwood 800-1800
Siam rosewood 80-300
Burma padauk 13-18
Rengas 8-10
Mai dou lai 6000-8000
Neang noun 23-36
Burma tulipwood 20-28
Cocobolo 28-120
Morado 10-15
Ebony 12-40
Trebol 3.6-8
African sandalwood 11-14

  
Zhangjiagang Timber Market Wholesale Prices

Logs, all grades  yuan/tonne
Sapelli 3000-4000
Kevazingo 8000-32000
Padouk de africa 2400-3100
Okoume 1400-1800
Okan 2400-2800
Dibetou 2200-2500
Afrormosia 5500-6500
Wenge 4700-5500
Zingana 3400-4800
Acajou de Africa 3000-3500
Ovengkol 3850-4300
Pao rosa 5900-6600

 

Logs, all grades  yuan/tonne
Merbau 3500-5800
Lauan 1800-2020
Kapur 2020-2500
Keruing 1700-2200
Geronggang 1600
Kauri 1700-1850

 

Logs, all grades  yuan/tonne
Amoora 1900-2080
Calophyllum 2150-2350
Red Ganarium 1300-1400

(Source: ITTO)

Trump targets softwood lumber deal

Posted on by GWMI Admin

In his first 200 days in office, the president-elect Donald Trump will reshape the U.S. trade policy with NAFTA.

According to a memo obtained by CNN, Trump will order the Commerce Department and International Trade Commission to study the ramifications of withdrawing from NAFTA in his first day of his presidency.

The Canadians believe that Trump in the presidency would bring a higher combined tax, of 30% to 40% in range. Canada's acceptance to re-negotiate of NAFTA, plus the inclusion of softwood lumber deal into the NA trade agreement (something that was excluded in its 1994 Continue reading "Trump targets softwood lumber deal"

Gas megatankers will be manufactured using plywood from Russian SVEZA

Posted on by GWMI Admin

In October 2016, SVEZA Ust-Izhora plywood mill obtained the GTT (Gaztransport & Technigaz), approval confirming compliance with specification of containment system for liquefied natural gas carriers. Continue reading "Gas megatankers will be manufactured using plywood from Russian SVEZA"

Weak recovery in European and North American wood markets expected to continue despite risks

Posted on by GWMI Admin

Overall, the pattern of weak recovery in EU and North American forest products markets following the global financial crisis is continuing in 2016 while the CIS market is declining.

Currency volatility and low oil prices have been key determinants of recent forest products trade trends. New market opportunities for forest products are arising from innovative products and policy measures to reduce carbon emissions and encourage moves to a circular economy.

However, there are significant downside risks to the stability of the global economy. The forest products sector also needs to focus more on ensuring the regulatory environment does not create unnecessary barriers to trade and enhances, rather than hinders, the competitiveness of wood relative to other materials.

These were key conclusions of the seventy-fourth session of the recent ECE Committee on Forests and the Forest Industry (COFFI) held in Geneva, Switzerland.

Drawing on the UNECE Forest Products Annual Market Review 2015-2016 published to coincide with the meeting, and presentations by regional market experts, it was concluded that the general condition of forest products markets in the ECE region remained relatively stable in 2015 and the first half of 2016.

European and North American markets experienced moderate consumption growth, benefitting from generally positive economic developments and improvements in the housing and construction industry.

In contrast, deteriorating economic conditions and currencies depreciations primarily accounted for a more than 4% contraction of sawnwood and panels consumption in countries of the Commonwealth of Independent States (CIS).

COFFI highlighted that currency volatility is playing an important role in trade of forest products in the UNECE region. In the United States during 2015, imports of wood products jumped about 10%, while exports declined by about the same ratio due to the strong US dollar.

Meanwhile the weakness of the euro and other European countries is contributing to a rise in the EU’s net trade surplus of forest products. In the CIS countries, a weakened rouble is pushing exports to record highs for all major product categories, in many cases more than countering the lack of domestic demand and thus increasing production.

The gap between the pace of economic expansion in the EU and the U.S. is narrowing, as economic activity in the euro area is rising. The wood furniture manufacturing sector in Europe continues to show resilience and is growing, with 84% of furniture consumed in Europe produced domestically.

Construction is expanding only slowly across Europe as a whole, but some individual markets are now performing well, notably in Germany, Netherlands, and the UK, while Spain is bouncing back after a particularly deep recession. The meeting observed that recent trade negotiations within the ECE region, if brought to a satisfactory conclusion, offer potential to further boost international trade in forest products.

Canada and the EU have concluded negotiations on the Comprehensive Economic and Trade Agreement (CETA), while the Transatlantic Trade and Investment Partnership (TTIP) – a trade agreement between the EU and the US – is still under negotiation. Both the CETA and TTIP would encourage transatlantic trade particularly in value added forest products.

US tropical sawn hardwood imports unchanged except for ipe

Posted on by GWMI Admin

US imports of temperate and tropical sawn hardwood fell by one third in September from the previous month to 64,979 cu.m.

The decline was mainly in temperate hardwood imports. Tropical sawnwood imports declined just 2% in September to 20,695 cu.m. The value of tropical sawnwood imported fell by 7% to US$23 million.

Imports of most tropical species increased in September despite the overall decline. Imports of balsa, sapelli, acajou d’Afrique, keruing, virola and meranti were all up.

On the other hand, ipe sawnwood imports fell by 27% from the previous month to 2,809 cu.m. Year-to-date imports of ipe were down 6% from September 2015. Mahogany imports fell 58% month-over-month to 1,219 cu.m., but year-to-date imports were higher than at the same period last year.

Imports from Cameroon were over 3,000 cu.m. in September. Cameroon increased shipments to the US of sapelli (1,754 cu.m.) and acajou d’Afrique (884 cu.m.). Sapelli imports from Congo Brazzaville declined in September to 1,119 cu.m.

RemaSawco receives an order from Callans Trä AB

Posted on by GWMI Admin

RemaSawco has received an order from Swedish Callans Trä AB comprising an upgrade of their dry sorter. The order value is 4.7 MSEK (appr. EUR 500,000) and includes an installation of a complete RS-BoardScannerQ system for quality sorting of boards and adaptations/upgrades to the existing ProSort control system.

The delivery will be performed in cooperation with Renholmen AB, who is responsible for the mechanical rebuild. The order was signed in the 3rd quarter and will be delivered at the end of 2016.

”This is an important order for us and another success for our RS-BoardScannerQ product”, says Peter Johansson, Managing Director of Image Systems AB. ”The product has been sold and commissioned to a large number of sawmills in the Swedish market place and also to Norway, the Baltic states, USA and Russia”.

”It's especially gratifying that Callans Trä AB now selects the RS-BoardscannerQ system, considering the very serious and carefully executed evaluation that have been made during the year", says Johan Kihlgren, Sales Manager at RemaSawco AB

Callans Trä AB produces high quality rough sawn wood from Spruce (White Wood) and Pine (Red Wood).The raw material is purchased from Swedish private forest owners in the local area, mainly Medelpad, Jämtland and Hälsingland. The annual production amounts to approximately 100 000m³ but the condition is to increase production to 160 000m³. Around 80 % of the company's end products are for export.

RemaSawco is a company working within the sawmill industry. The products consist of sophisticated measurement techniques covering the entire process from log sorters to dry sorters and planers.

Finland: Softwood sawn timber production up 9.2% to 2.6 million cubic metres in 3Q/2016

Posted on by GWMI Admin

The rate of growth in the production of Finnish softwood sawn timber, pulp and paperboard accelerated in July–September compared to the first half of the year. The first six months of the year were also good for pulp and paperboard, largely due to new investments. Paper production, however, continued to decline. The profitability of sawn timber production in Finland was reduced by lower export prices and higher raw material costs.

The production of softwood sawn timber in Finland grew by 9.2% in the third quarter and amounted to 2.6 million cubic metres. Pulp production also increased substantially and was up 11.1% compared to the corresponding period last year. Forest industry corporations produced a total of 1.9 million tonnes of pulp in July–September.

Paperboard production grew by as much as 17.5% in the third quarter, to 840,000 tonnes, boosted particularly by new investments in the forest industry. At the same time, paper production declined by 5% and amounted to 1.7 million tonnes.

Paper production has fallen by 6.1% since the start of the year. Forest industry corporations’ production was 5.1 million tonnes in January–September, but production growth continued in other product categories.

Since the start of the year, Finland's forest industry corporations produced 6.5% more softwood sawn timber than in the corresponding period in 2015, for a total production volume of 8.4 million cubic metres. Pulp production increased at almost the same rate, with a year-on-year increase of 6.4% in January–September and a total production volume of 5.6 million tonnes. Paperboard production grew by 10% to 2.5 million tonnes during the first three quarters of the year.

Reasonable energy costs prevent carbon leakage

“The Government Programme states that industrial costs will not be increased. This is an important policy that must be maintained. Reasonable energy costs, as well as reasonable costs related to raw material use and logistics, are essential for the Finnish forest industry,” says Timo Jaatinen, Director General of the Finnish Forest Industries Federation.

Fair treatment compared to the countries that compete with the Finnish forest industry helps prevent carbon leakage, which refers to the relocation of production operations. It also makes it possible to maintain the targets set for renewable energy. The forest industry produces two thirds of Finland’s renewable energy.

In September, the Finnish government submitted a proposal to the parliament on implementing compensation for the costs of emissions trading at a rate of 50% of the maximum allowed by the EU, which would reduce the competitive disadvantage of Finnish industry. Germany, for example, has implemented compensation for the costs of emissions trading at the full rate allowed by the EU. It is important to ensure that the model drafted by the government will not be changed.

“Consistent decisions and policies are essential from the perspective of businesses. The changes proposed in the public discussion on the issue would be contrary to this principle,” Jaatinen explains.

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