The US concrete sector is showing concerns regarding the use of mass timber products, especially CLT, as a safe and sustainable building material for mid-rise construction.
The American Federation NRMCA (National Ready Mixed Concrete Association) has recently published a video against the ongoing attempts to establish the CLT as a solution for multi-storey buildings. Continue reading "Is cross laminated timber better than concrete?"
World demand for forestry equipment (including both purpose-built and converted machinery) is forecast to rise 4.5 percent annualy to US$9.3 billion in 2019. This will represent a moderation from the 2009-2014 pace of increase, a period during which market gains were bolstered by a rebound in roundwood production from lows posted during the 2009 global recession, as well as by the institution of new engine emissions standards in European Union (EU) and US.
According to a new Freedonia report, Continue reading "World demand of forestry machinery to surge 4.5% annually by 2019"
Century Plyboards and Greenply Industries' revenues have surged about 44%, given the strong returns in the past one year.
Further gains could be linked to company-specific growth in revenue and market share, as well as profitability improvement. There have been a lot of factors behind the race, such as the government recently imposing an anti-dumping duty on imports of fibre boards from Indonesia and Vietnam for five years, Continue reading "India: Century Plyboard and Greenply revenues expected to rise strongly"
The Canadian lumber producers are uncertain about the shares of the market now that a key deadline has arrived in softwood lumber trade with the U.S. that frees up the option of a fresh round of trade litigation.
Continue reading "As lumber dispute continues, Canadian lumber producers are vulnerable to share price pressures"
United Kingdom' s softwood timber imports grew by 5% during January-July 2016, as compared to the same period last year.
The UK imported 3,7 million m3 of softwood timber from thw world and most of them came from the European Union countries. The EU countries exported 3,4 million m3 to the UK, 6% more than in the mentioned period from 2015.
Sweden was the top timber exporter for the UK, with a volume of 1,6 million m3. This represented a 8% increase over January-July 2016. UK's timber imports from Latvia grew too, by 17%, reaching 577,000 m3, while the imports from Finland remained slightly the same, at 490,000 m3.
All in all, UK's softwood timber imports weren't affected by the Brexit yet. Forecasts concluded that the vote of the UK leaving the EU might affect these imports in the second half of the year, due to the exchange rate. A sharp slowdown in the imports might be visible in September.
Moreover, Setra, one of the major construction softwood suppliers for the UK, said that this would bring a lot of uncertainty and unease in the short-term, as the UK is one of the largest export markets for the Swedish company. Also, with the UK being the largest export market for sawn timber products, the Swedish export market faces uncertainty regarding the exchange rates, which could affect the forest industry.
TOP 10 Origins
Softwood Timber imported by United Kingdom from... (in cbm )
| Origin | I-VII 2015 | I-VII 2016 | Change in % | |||
|
3,252,478 | 3,452,759 | 6 % | |||
|
1,500,762 | 1,617,477 | 8 % | |||
|
495,136 | 577,707 | 17 % | |||
|
492,809 | 490,557 | 0 % | |||
|
221,897 | 233,421 | 5 % | |||
|
195,953 | 200,723 | 2 % | |||
|
345,921 | 332,874 | -4 % | |||
|
287,223 | 251,261 | -13 % | |||
|
213,670 | 216,688 | 1 % | |||
|
73,117 | 34,288 | -53 % | |||
|
238 | 218 | -8 % | |||
|
37,958 | 34,034 | -10 % | |||
|
32,118 | 27,613 | -14 % | |||
|
5,840 | 6,421 | 10 % | |||
| TOTAL | 3,581,121 | 3,743,638 | 5 % |
HS Code: 440710; Data source: Eurostat
Although the first CLT production facilities were constructed in the DACH countries (Germany, Austria and Switzerland) in 1994, the full potential is only now being realised following a long period of technical and market development. CLT first entered the building market during the 2005 to 2010 period, transforming from a small-scale niche product into large-scale industrial production.
CLT panels consist of several layers of structural lumber boards stacked crosswise (typically at 90 degrees) and glued together on their wide faces and, sometimes, on the narrow faces as well.
In special configurations, consecutive layers may be placed in the same direction to obtain specific structural characteristics. CLT products are usually fabricated with three to seven layers, but with additional layers in some cases. Continue reading "CLT to create new opportunities for hardwoods"
The average retail price for wood pellets in Switzerland increased during October 2016, to 365.2 CHF/t (334.72 EUR/t). This represents a 0.16% increase over September (364.6 CHF/t), but a 3.6% decrease as compared to October 2015. Continue reading "Price of wood pellets in Switzerland slightly up during October"
Resolute Forest Products Inc. President and Chief Executive Officer Richard Garneau reaffirmed on the 12th of October the company's support of free, unencumbered access for softwood lumber exports from Central Canada (Quebec and Ontario) to the United States. Mr. Garneau has been a leading figure in the ongoing softwood lumber dispute between the U.S. and Canada, and draws on over 40 years of experience and leadership in the forest products industry across Canada. Continue reading "Resolute Forest Products CEO calls for free softwood lumber exports from Quebec and Ontario to the US"
In the ten years since 2005 Brazilian timber exports have almost halved (-44%) while imports have increased dramatically. This, and the fact that Brazil slipped from the 12th to 32nd place in the ranking among exporting countries, has been reported by Market Intelligence Institute (IEMI).
Prospects for a short term recovery in furniture sales are not good but IEMI is forecasting that global and domestic demand should begin a recovery towards year end but it is unlikely that the furniture sector will see production rise to the 476 million pieces produced in 2013. IEMI has forecast that it could be until 2022 that such output could be once again attained.
In offering a solution for increasing exports IEMI suggests the furniture industries could focus on innovation and characteristics that differentiate Brazilian products from those from other countries, i.e. increase the “Brazilianness” of products.
This could involve using the wide-range of native timbers along with innovative designs to gain competitive advantage in the international market.
First half 2016 tough for furniture makers
While August furniture exports increased by around 13%, this year has been tough for furniture manufacturers. The contraction of the Brazilian economy has impacted all sectors and the furniture industries are no exception.
According to IEMI , between January and June this year Brazilian furniture production, in terms of number of pieces produced, was down almost 15% compared to the first half of 2015.
Over the same period furniture imports dropped around 13%. Perhaps of most concern is the indication from IEMI that productivity in the furniture manufacturing sector worsened.
To address the challenge of weak demand the Furniture Industry Association of Rio Grande do Sul (MOVERGS) says the solution is to maintain investment in advanced technologies and pay more attention to product design and market diversification.
Strategic export markets identified by furniture sector panel
The Brazilian Furniture Industry Association (ABIMÓVEL) organized a panel discussion focused on the challenges in the furniture manufacturing sector at its recent Furniture National Congress.
One major concern voiced was the trend in demand level in the US and China and the impact of this on the global economy.
The panel attempted to identify strategic export markets after analysing the potential in various countries. The panel concluded that for Chile and Mexico efforts should be focused on resuming trade, for Colombia, the United States and Panama the panel suggested there is a need to strengthen trade relationships.
For the United Arab Emirates and the United Kingdom the panel concluded these markets were beginning to be aware of Brazilian furniture.
The Brazilian Agency for Industrial Development (ABDI) contributed to the panel discussion and said the agency has a great interest in the furniture industry and would encourage the adoption of advanced manufacturing and management technologies to secure greater market access.
Weyerhaeuser said it is exploring strategic alternatives, including a possible sale, for its timberlands and manufacturing operations in Uruguay.
Weyerhaeuser has been restructuring its business since it bought Plum Creek Timber Co Inc PCL.N in February, combining the two largest owners of timberland in the United States. Continue reading "Weyerhaeuser exploring possible sale of Uruguay business"
U.S. sawmills produced 19.229 billion board ft. (bbf) of softwood lumber in the first seven months of 2016, an increase of 3.2% from 18.628 bbf in the same period of 2015.
Western U.S. sawmills contributed 8.123 bbf to the seven-month total, up 0.8% from 8.059 bbf a year earlier, while sawmills in the southern U.S. accounted for 10.216 bbf – up 5.1% from 9.716 bbf in the previous year.
Production in July alone was 2.597 bbf, a drop of 4.5% year-over-year from 2.719 bbf, and down 11.5% from 2.933 bbf in June 2016, , Continue reading "US lumber production higher than a year ago"
Two Rivers Lumber Co. plans to invest $65 million to build a state of the art sawmill in Demopolis that will create 55 jobs initially and a total of 95 eventually.
“I am committed to helping the rural areas of this great state become more prosperous through business growth and the creation of new jobs,” Alabama's Governor Robert Bentley said. “This investment from Two Rivers Lumber Co. will provide well-paying jobs to Alabama citizens and drive economic growth in Marengo County. Our partnership with the company perfectly aligns with the goals we’ve set to help rural Alabama.”
Two Rivers Lumber is a new operation, and this is the company’s first mill. The new mill will be located just south of where the Black Warrior and Tombigbee rivers come together, inspiring the company’s name. Two Rivers plans to produce all sizes of Southern Yellow Pine dimensional lumber and market it throughout the United States.
“We are excited about building a new sawmill in west Alabama and what it will mean to local land owners as well as bringing quality manufacturing jobs to the area,” said Jay McElroy, a principal in Two Rivers. “Planning began over a year ago and this project would not be possible without support from the City of Demopolis, the State of Alabama, and our lender, Alabama Ag Credit.
“We have a long family history in the area, with all our businesses being tied to the Southern Yellow Pine,” McElroy continued. “We are very pleased to continue this tradition.”
Two Rivers has contracted with Bid Group to design and build the sawmill. Upon completion, the mill will have an annual capacity of 200 million board feet. Construction is slated to begin in January 2017, with mill production expected to begin in September 2017.
The company said it expects many indirect jobs in the forest products industry will be created as it expands to support the operation.
Two Rivers’ new sawmill will be located in Marengo County, one of Alabama’s so-called “Targeted Counties” under incentives legislation adopted in 2015, meaning the project is eligible for an enhanced benefit for job creation. These counties have fewer than 25,000 residents.
“The state-of-the-art sawmill being planned by Two Rivers Lumber Co. is precisely the kind of project we had in mind when the Legislature approved enhanced incentives for companies making investments and creating jobs in ‘Targeted Counties’ across Alabama,” said Greg Canfield, secretary of the Alabama Department of Commerce.
“Rural counties face a unique set of obstacles when it comes to economic development, and we think this approach gives them a new tool when pursuing projects,” he added.
The sawmill industry has long since abandoned labor-intensive manual operations in favor of efficiency-enhancing automated processes. At LIGNA 2017, all the leading providers will be showcasing technology solutions that take automation to the next level.
Achieving sustained profitability in sawmilling hinges on system-wide process optimization. Consequently, sawmill companies around the world are looking to invest in advanced technologies across a range of areas, from log handling right through to timber drying, optimization and packaging. LIGNA, the world’s leading trade fair for machinery, plant and tools for the woodworking and timber processing industries, is the perfect place for them to do their research and ensure they make the right decisions.
The show will feature a solid lineup of market leaders, including Linck, USNR and Veisto, who will be presenting integrated systems comprising state-of-the-art roundwood handling and cutting systems. Visitors looking for roundwood yard optimization solutions will also find fully automated debarking systems from a range of providers, including Baljer & Zembrod and Valon Kone. EWD will also be there with its camera-assisted log grading and sawing pattern optimization software for maximizing sawn timber yield. The primary focus of innovation in this area is on electronic measurement systems. Technologies for determining roundwood and lumber dimensions and quality are another important means of adding value in sawmilling. X-ray scanners, such as those produced by Microtec, are a prime example of this. The same is true of automatic board edging systems, such as the latest edging lines by Primultini. Then, of course, there are specialists like PAUL Maschinenfabrik GmbH & Co. KG, whose optimized docking saws maximize output and minimize trim waste.
There is always some degree of waste, of course, and so there is growing interest in recycling systems. For example, Vecoplan and Urbas will be showcasing their solutions for processing sawmill residues into valuable products and biofuels. Another exciting option in the sawmill efficiency game relates to high-tech timber kilns of the type showcased by Mühlböck and Eberl. These kilns enable sawmill operators to get high-quality timber to market faster and more easily than ever before.
Another key development is that more and more sawmill companies are diversifying their portfolios. Increasingly, they are supplementing their lumber offerings with processed, value-added timber products. LIGNA has this area covered as well, with an extensive array of products ranging from small "plug & play" planing solutions to the large-scale finger-jointing plants developed by the Weinig Group. In 2017, the LIGNA show’s revamped thematic layout will make it much easier for visitors to find what they are looking for. Products and solutions for all stages of the sawmill value chain will be located under one roof, in Hall 25, while the displays of mobile sawmill technology will be located on the open-air site.
Meanwhile, the latest technologies for processing lumber into construction materials such as structural laminated timber and plywood will be on show in the neighboring Hall 27.
Plantation teak prices
Demand for teak has improved and some shippers have changed the prices for small size logs.
| US$ per m3 | |
| Angola logs | 459-574 |
| Belize logs | 350-400 |
| Benin logs | 290-714 |
| Benin sawn | 530-872 |
| Brazil logs | 277-812 |
| Brazil squares | 370-556 |
| Cameroon logs | 405-616 |
| Colombia logs | 258-982 |
| Congo D. R. logs | 450-761 |
| Costa Rica logs | 250-780 |
| Côte d'Ivoire logs | 289-756 |
| Ecuador squares | 258-616 |
| El-Salvador logs | 320-732 |
| Ghana logs | 276-434 |
| Guatemala logs | 324-646 |
| Guyana logs | 300-450 |
| Kenya logs | 515-876 |
| Laos logs | 300-605 |
| Liberia logs | 265-460 |
| Malaysian logs | 225-516 |
| Mexican logs | 295-808 |
| Nicaragua logs | 402-505 |
| Panama logs | 335-475 |
| PNG logs | 443-575 |
| Sudan logs | 317-720 |
| Tanzania, teak, sawn | 307-613 |
| Thailand logs | 511-700 |
| Togo logs | 354-590 |
| Trinidad and Tobago logs | 603-753 |
| Uganda logs | 411-623 |
| Uganda Teak sawn | 680-900 |
Price range depends on quality, length and average girth of logs.
Prices from the three new plantation teak log suppliers remain unchanged at: Taiwan P.o.C (US$1036 to 2126 per cu.m C and F), China (US$855 to 1118 per cu.m C and F) and Honduras (US$471 to US$539 per cu.m C and F).
Prices for locally sawn imported hardwoods
| Sawnwood, (Ex-mill) (AD) | Rs. per ft3 |
|
Merbau
|
2400-2650 |
|
Balau
|
1750-1950 |
|
Resak
|
1250-1450 |
|
Kapur
|
1750-1890 |
|
Kempas
|
1250-1700 |
|
Red Meranti
|
1200-1350 |
|
Radiata pine AD
|
850-950 |
|
Whitewood
|
850-950 |
Price range depends mainly on length and cross section
Myanmar teak flitches resawn in India
Domestic demand continues to firm but has not yet impacted pricing.
| Sawnwood (Ex-mill) | Rs. per ft3 |
| Myanmar Teak (AD) | |
|
Export Grade F.E.Q.
|
8000-15000 |
|
Plantation Teak A grade
|
6500-7500 |
|
Plantation Teak B grade
|
5000-5500 |
|
Plantation Teak FAS grade
|
4000-4500 |
Price variations depend mainly on length and cross section.
Prices for imported sawnwood
Demand for imported sawnwood remain weak such that there are no opportunities for price increases.
| Sawnwood, (Ex-warehouse) (KD) | Rs per ft3 |
| Beech | 1350-1450 |
| Sycamore | 1500-1650 |
| Red oak | 1600-1750 |
| White Oak | 2100-2150 |
| American Walnut | 4000-4400 |
| Hemlock clear grade | 1300-1400 |
| Hemlock AB grade | 1250-1300 |
| Western Red Cedar | 1650-1850 |
| Douglas Fir | 1350-1450 |
Price variations depend mainly on length and cross section.
Prices fo WBP Marine grade plywood from domestic mills
Increased investment in plywood production has created a situation of over-supply which is impacting sales volumes, pricing and the bottom-line of manufacturers.
The building and construction sectors are active but the glut of standard panels offers no opportunity for manufacturers to achieve better prices which are long over due.
| Plywood, | Rs per sq.ft |
| Ex-warehouse. (MR Quality) | |
| 4 mm | 41.55 |
| 6 mm | 55.00 |
| 9 mm | 70.00 |
| 12 mm | 86.00 |
| 15 mm | 114.50 |
| 18 mm | 120.00 |
Domestic ex-warehouse prices for locally manufactured MR plywood
| Locally Manufactured Plywood “Commercial Grade” |
Rs per sq.ft | |
| Rubberwood | Hardwood | |
| 4mm | Rs.21.00 | Rs.31.00 |
| 6mm | Rs.31.80 | Rs.40.00 |
| 8mm | Rs.40.00 | Rs.48.50 |
| 12mm | Rs.49.00 | Rs.58.50 |
| 15mm | Rs.59.50 | Rs.71.50 |
| 19mm | RS.67.80 | Rs.80.00 |
| 5mm Flexible ply | Rs.42.00 | |
Source: ITTO
During January-July 2016, the volume of the softwood logs exports from the European Union countries to China has increased by 67%, from 205,000 m3 in the mentioned period of 2015 to 342,000 m3 in 2016.
Exports from Lithuania and Estonia boosted by 236% and 77%, respectively, while the softwood logs exported from Denmark and Latvia amounted to 46,000 m3 and 34,000 m3 respectively.
France remained the top exporter and increased the volumes by 84%, from 50,000 m3 during January-July 2015 to 93,000 m3 during the same period of 2016.
TOP 10 Exporting Countries
Softwood logs exported to China from... (in cbm )
| Exporting Country | I-VII 2015 | I-VII 2016 | Change in % | |||
|
205,473 | 342,873 | 67 % | |||
|
50,737 | 93,371 | 84 % | |||
|
33,606 | 59,563 | 77 % | |||
|
16,285 | 54,686 | 236 % | |||
|
18,789 | 46,350 | 147 % | |||
|
14,330 | 34,123 | 138 % | |||
|
71,726 | 54,780 | -24 % | |||
| TOTAL | 205,473 | 342,873 | 67 % |
The product Softwood logs consists of following HS Code: 440320; Data source: Eurostat
The Lenzing Group will expand and modernize its existing dissolving wood pulp production at the sites in Lenzing, Austria, and Paskov, Czech Republic.
Lenzing CEO Stefan Doboczky announced a total investment program of Euro 100 million, approximately Euro 60 million of it in Lenzing and almost Euro 40 million in Paskov. Additional new capacities of around 35,000 tons will be added over the next 2.5 years.
“With these investments, we are taking another step in the implementation of our new corporate strategy sCore TEN,” said Stefan Doboczky. “We aim to increase our own dissolving wood pulp production from currently 56% to 75% of the group’s requirements for the production of botanic cellulose fibers by the end of the decade. The modernization will lead to more efficiency of our plants. The upgrade and expansion of our bio-refinery setup will underline Lenzing’s leadership as the most sustainable fiber producer.”
In August 2016, Lenzing announced a capacity expansion for specialty fibers of 35,000 tons by mid-2018.
Roughly Euro 70 million will be invested in the site in Heiligenkreuz/Burgenland and approximately Euro 30 million in Lenzing/Upper Austria as part of this project. The new pulp investment program will be implemented in addition to these investments.
These investments are yet another long-term commitment of the Lenzing Group to the Austrian production sites. In the next 2.5 years, Lenzing will therefore invest a total of Euro 160 million in Austria. Lenzing is thus once again one of the leading industrial investors in Austria.
The government of the Khabarovsk Territory, OOO Management Company RFP Group and OOO Asia Les met at the second Eastern Economic Forum in Vladivostok, Vnesheconombank (VEB) and signed a letter as to set up a forest industry cluster in Russia’s Far East. Continue reading "Russian timber giants plan forest industry cluster in Russia’s Far East"
Dong Energy has completed the EUR 174 million conversion of one of its power stations, which will now use wood pellets instead of coal.
The conversion makes Studstrup Power Station one of the biggest biomass-fuelled power stations in the world. In future, it is expected to produce district heating based on biomass for around 106,000 Danish homes as well as green electricity equivalent to the annual consumption of around 230,000 Danish homes. Continue reading "Video: Dong Energy power station switches from coal to wood pellets"
The German wood industry looks back on a successful first half-year 2016. Compared to the same period of the previous year, a strong revenue growth of 4.3% to € 17.4 billion (2015: € 16.7 billion) was achieved. As a result, the sector's economy has accelerated considerably, as the turnover of the industry in the comparable period of 2015 was only 1.5%.
In the German wood industry, a total of 148,982 men and women were employed by 941 companies in the first half of 2016. Compared to the same period of the previous year, the number of companies declined by 0.8%, but the number of employees increased by 0.7%. Continue reading "Germany’s wood industry achieved a considerable growth in the first half of the year"
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