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German oak sawlogs exports to China up 14% in H1/2016

German exports of oak sawlogs during January to June 2016 have slightly descended as compared to last year. The volume of exports dropped by -6%, but there was no change in the percentage value.
The oak sawlogs exports reached a total of 41,745 m3, which is -6% lower than in 2015, when there 44,518 m3 oak sawlogs exported from Germany. The value of exports rose up to EUR 8,59 million, as compared to the EUR 8,62 million from the same period of 2015.
Shipments to fellow European Union countries are in regress over January-June 2015, but the booming shipments to China have supported the overall surge in German exports.
The German deliveries to China increased by 14%, reaching 18,997 m3 during the first six months of the year, with a value of EUR 3,5 million, going ahead of France, where the shipments were 3% higher than last year, but reached only 6,268 m3 at a value of EUR 2,1 million.

Germany: Oak Sawlogs Exports; Top 5 Destinations In volume (m3)
I-VI 2015 I-VI 2016 Change in %; 2015-2016
China 16,666 18,997 14%
France 6,073 6,268 3%
Denmark 9,420 5,505 -42%
Poland 1,637 2,242 37%
Austria 2,450 2,153 -12%
Others 2,595 3,739 44%
TOTAL 44,518 41,745 -6%

 

Germany: Oak Sawlogs Exports; Top 5 Destinations In value (EUR)
I-VI 2015 I-VI 2016 Change in %; 2015-2016
China 2,970,320 3,506,590 18%
France 2,455,140 2,165,210 -12%
Denmark 1,396,400 1,131,400 -19%
Austria 406,600 352,030 -13%
Belgium 317,680 302,920 -5%
Others 395,220 696,590 76%
TOTAL 8,624,580 8,596,090 0%

US: Decline in ipe and sapelli sawnwood imports

The US import volume of sawn temperate and tropical hardwood fell by one third in June to 86,178 cu.m. However, the value of imports increased 2% to US$44.8 million because of higher tropical imports.
US imports of temperate species declined in June, while tropical sawn hardwood imports volumes grew 18% from May to 23,297 cu.m. The value of tropical imports was US$23.9 million and accounted for 53% of all US sawn hardwood imports in June, up from 49% in May.
Despite the overall growth in tropical imports, ipe and sapelli imports declined in June. Ipe sawnwood imports were 2,589 cu.m., down 35% from May. Sapelli imports decreased 13% from the previous month to 2,379 cu.m. Year-to-date sapelli imports were down over 40% from June 2015. Imports of jatoba and teak also declined in June.
Balsa sawnwood imports increased 14% to 5,283 cu.m. Acajou d’Afrique and keruing imports grew significantly from May, but year-to-date imports remain below last year’s levels.
Among the main suppliers of tropical sawnwood to the US market only Ecuador and Indonesia shipped more year-todate than in June 2015.
Imports from the Democratic Republic of the Congo/Kinshasa jumped to 1,178 cu.m. in June, up from a monthly few hundred cubic metres earlier this year.

Softwood lumber prices in Austria stable in September

Softwood lumber prices in Austria are stable in September, with the levels of August mostly maintained. Edged boards and squared timber have softened slightly. The upper price limit for rough boards is EUR 1/m3 lower than August, while width boards are a bit more expensive.

Continue reading "Softwood lumber prices in Austria stable in September"

China boosts imports of hardwood logs

Chinese hardwood log imports totalled 7.79 million cubic metres, or 30% of all log imports, a year on year increase of 26% in volume. Hardwood log imports were mainly from PNG (1.77 million cu.m, up 20%), Russia (1.14 million cu.m, up 26%), Solomon Isalnds (1.09 million cu.m, down -7%), Equatorial Guinea (0.54 million cu.m, up 85%), the US (0.34 million cu.m, up 7%), Germany (0.27 million cu.m, up 37%), Mozambique (0.26 million cu.m, down -12%), the Republic of Congo (0.25 million cu.m, up 5%), France (0.25 million cu.m, down -19%) and Cameroon (0.24 million cu.m, down -21%).
Ranked top 10 countries supplying China’s hardwood log imports in the first half of 2016 Continue reading "China boosts imports of hardwood logs"

KVH and glulam prices largely stable in Germany and Austria

Producer prices for German KVH (Konstruktionsvollholz; solid construction timber) were 5 percent lower in July than in the same month of last year. German manufacturers confirm this. By price increases in raw materials, KVH in Germany has come under increasing price pressure. Especially in western Germany such problems were reported.
In the north and especially in the south of the country, manufacturers are preoccupied to satisfy demand at a generally adequate price level. In the south of Germany, as well as in Austria, the situation is more relaxed due to storm and beetle wood volumes which determine prices  Continue reading "KVH and glulam prices largely stable in Germany and Austria"

Indonesia targets US$ 5 billion from timber exports in the next five years

The Indonesian government has set a target for wood product exports at US$5 billion in five years, said Airlangga Hartanto, the Indonesian Minister of Industry.

Statistics from the Ministry of Industry showed that the export value of wood and rattan furniture was US$1.9 billion in 2014, rising to US$2 billion in 2015. To help the private sector achieve the five-year target, Mr Hartanto indicated that an all-out effort to encourage investment in the timber, furniture and national craft industries will be made along with a synergy of policies to realise the US$5 billion target.
Mr Hartanto said his aim is to boost and strengthen the competitiveness of Indonesia's small and medium-sized industries so that they can compete with imported goods.
However, a big boost to the manufacturing sector in Indonesia would be needed if it is to contribute more than the current 20% to GDP, according to an analysis by Indonesia-investments.com. Indonesia’s dependence on commodity exports makes it vulnerable to external threats. Data from Indonesia's Industry Ministry showed that the domestic industry is growing at a slower pace than Indonesia's overall economy.
 

Japan designed four models of wooden houses for Chinese building standards

The Japan Wood Products Export Promotion Council has made up four models of wood houses based on the Chinese wood building standard.
The models correspond with the Chinese needs of Japanese species like cedar, cypress and larch to differentiate from 2x4construction. The Council is now planning to promote sales of domestic wood products and wood house to China.
At the moment, there are four model plans. M1 type has two stories with floor space of 170-300 m2 and M2 type has two to three stories with floor space of 170– 300 m2. M1and M2 are both medium grade specifications.
 J1 type has two stories with floor space of 200-300 m2 and J2 type has two stories with floor space of more than 300 m2. 1 and J2 are both high grade specification. They are different from Japanese houses, with much higher height of ceiling like 3-4 meters on first floor and 2.4-2.5 meters on the second floor.
The Chinese wood construction standard allows to build up to three stories and the committee is now discussing for higher wood multilayer building. They are also interested in wood multilayer buildings in North America and Europe including use of CLT.

Canada's trade minister blames US protectionism for lumber dispute

A growing protectionist feeling in the US might cause an escalation of the trade dispute between Canada and the US over the softwood lumber trade issues.
Canadian Trade Minister Chrystia Freeland said that there’s a chance the two sides won’t be able to reach a deal before an October deadline, raising the specter of higher U.S. tariffs, according to Bloomberg.

“There is no guarantee we are going to get to a deal that works for both sides,” she said during the G-20 summit in China. Coming to an agreement “is harder in this protectionist, anti-trade climate.”

Freeland met with U.S. Trade Representative Mike Froman on Sunday and they have another meeting planned in the next two weeks, to discuss over the matter. She added that trade is advantageous worldwide and the support for trade agreement is breaking down globally.
As reported by Bloomberg, if the deadline on softwood lumber is missed, the U.S. is expected to begin a process to enact new tariffs, which could hurt exports by Canadian producers. The previous softwood lumber agreement expired in October, triggering a one-year standstill that includes a tariff freeze.
Freeland also said that because of the way trade is received worldwide, Canada’s efforts to achieve a free-trade agreement with the European Union are being more complicated.
 
 

Canada’s trade minister blames US protectionism for lumber dispute

A growing protectionist feeling in the US might cause an escalation of the trade dispute between Canada and the US over the softwood lumber trade issues.

Canadian Trade Minister Chrystia Freeland said that there’s a chance the two sides won’t be able to reach a deal before an October deadline, raising the specter of higher U.S. tariffs, according to Bloomberg.

“There is no guarantee we are going to get to a deal that works for both sides,” she said during the G-20 summit in China. Coming to an agreement “is harder in this protectionist, anti-trade climate.”

Freeland met with U.S. Trade Representative Mike Froman on Sunday and they have another meeting planned in the next two weeks, to discuss over the matter. She added that trade is advantageous worldwide and the support for trade agreement is breaking down globally.

As reported by Bloomberg, if the deadline on softwood lumber is missed, the U.S. is expected to begin a process to enact new tariffs, which could hurt exports by Canadian producers. The previous softwood lumber agreement expired in October, triggering a one-year standstill that includes a tariff freeze.

Freeland also said that because of the way trade is received worldwide, Canada’s efforts to achieve a free-trade agreement with the European Union are being more complicated.

 

 

Viridis Energy reportedly has potential buyer for its Okanagan Pellets plant

Viridis Energy Inc. announced the resignation of its non-executive chairman of the board, Robert M. Aaron. Continue reading "Viridis Energy reportedly has potential buyer for its Okanagan Pellets plant"

Mozambique government proposes total ban on log exports

The government in Mozambique has proposed a total ban on all the exports of unprocessed logs, no matter of the tree species they come from.
Xavier Sakambuera, the national director of forests in the Ministry of Land, Environment and Rural Development, announced that a bill has already been drafted and deposited with the country’s parliament, the Assembly of the Republic, as reported by Club of Mozambique.
This would be the first total ban, despite several attempts in the past to prohibit the logs exports from particular species of hardwoods. This ban is most likely to meet opposition from logging interests, who want to destroy the forests in Mozambique as to sell unprocessed wood to foreign buyers, particularly from China.
Since all the log exports would be illegal, once the ban is turned into law, the forest wardens and customs inspectors will no longer have to determine what kind of trees the logs come from. At the moment, Mozambique is losing 220,000 hectares of forest each year, not only due to logging, but also because of uncontrolled bush fires and the clearing of land for building purposes.
According to Club of Mozambique, a ban will greatly reduce illegal logging, and will create more jobs in the timber processing industry.
Sakambuera said that the technology in the timber industry will be modernized and the government is confident that the prices charged in marketing wood throughout the country will be adjusted.
 

38th China International Furniture Fair to open in September in Shanghai

The 38th China International Furniture Fair (Shanghai) (CIFF) will be held during September 7th to 10th, 2016 at National Exhibition and Convention Center (NECC) in Shanghai. Over 40 on-site professional events are scheduled, including Pinnacle Awards, known as the American furniture Oscars, loading its first China exhibition tour and hold its presentation unit.
Under the theme of "Modern Home Furniture, Innovation for New Life", the fair's events include design shows, trade conventions and forums, aiming at further enhancing international industry communication for suppliers and buyers.

The 38th CIFF also invited international maestros such as Pinnacle Awards winner and guest of the G20 summit, the famous Spanish artist Cristobal Gabarron, as well as the well-known Portuguese architect, Pritzker Prize winner Alvaro Siza, to attend the fair to discuss industry trends.

Focusing on the topic of "color", the EAST Design Show will work with various leading Asian brands, college workshops as well as individual and media studios to bring visitors refreshing visual enjoyment, promoting the best oriental furniture design.
Buyers interested in office furniture could also enjoy the office pavilion to visit "Fashion Office". The exhibition will show future office environment by integrating means of office fashion show, crossover visual impact and intelligent e-commerce office.
The China Furniture Industry Forum will be held at the same time. Industry pioneers from around the world will focus on use of various superior resources, further innovation, and potential opportunities during global manufacturing trough.
With a scale of 400,000 square meters, the 38th CIFF Shanghai will embrace over 200 professional attendees, traders, and designer teams from over 30 countries and areas. To provide superior visiting experiences, the fair also introduces large scales of upgraded services. Visiting paths in the pavilion central business areas are optimized to guide visitors to proper destinations.
"CIFF is the China leading furniture expo, it has been upholding the core idea of ingenuity, quality and innovation since the very beginning," said the committee member of the 38th CIFF, "It is not merely an exhibition, but also a bridge. Through the CIFF platform, we expect more industry elites from worldwide to communicate, explore and further promote the globalization of furniture industry."
About CIFF
As the first and largest furniture fair in China, the 38th CIFF will be organized by China Foreign Trade Center (Group), Guangdong Furniture Association, China Chamber of Commerce for Import and Export of Light Industrial Products and Arts-Crafts and hosted by China Foreign Trade Guangzhou Exhibition General Corp.

UK pellet producer increases South Ayrshire mill capacity

Land Energy Givan Ltd plans to invest £6.4 million as to expand its South Ayrshire site. The wood pellet producer wants to increase capacity of its combined heat and power plant, as well as to upgrade its pellet line in Girvan.
The company will thus create 10 new full-time jobs.
As reported by BBC, the drive to increase capacity and boost productivity has been backed by a £250,000 Scottish Enterprise grant. Continue reading "UK pellet producer increases South Ayrshire mill capacity"

British Columbia invests $150 million in strategy promoting the forest industry

British Columbia’s government is currently working on a plan to enhance the competitiveness of the province’s forest industry.
Canada is facing a hard moment because of the talks with the US regarding the lumber trade deal, which seem to reach no positive end. Thus, the threat of the US-imposed tariffs over the lumber imported from Canada is a big issue to face.
BC announced on the 31st of August a strategy worth $150 million as to increase the promotion and management of the province’s lumber. Steve Thomson, minister of forests, lands and natural resource operations, said the province is closely watching the ongoing negotiations with the U.S. to renew the 2006 softwood lumber deal that expired nearly a year ago, Continue reading "British Columbia invests $150 million in strategy promoting the forest industry"

Lumber prices in the US started to fall at the beginning of September

Framing lumber traders encountered a difficult sales week at the end of August. The downturn in futures from Thursday also caused the market to keep a dull tone. Buyers were conservative and shopped exclusively for discounts. At the beginning of September, Random Lengths Framing Lumber Composite Price fell $8 compared to the end of August.

This Week
Sep 2
Last Week
Aug 26
Year Ago
2015
Random Lengths Framing Lumber Composite Price* $354 $362 $309
KD Western S-P-F #2&Btr 2x4 R/L Mill Price 311 316 249
KD Eastern S-P-F #1&2 2x4 R/L, delivered Great Lakes 421 429 366
Green Douglas Fir Std&Btr 2x4 R/L (Portland) 332 335 310
Southern Pine (Westside) #2 2x4 R/L 409 420 312
KD Coast Hem-Fir #2&Btr 2x4 R/L 330 330 311
Ponderosa Pine (Inland) #2&Btr 1x12 R/L 695 695 665
* Weighted average of 15 key items

 
Random Lengths Panel Market Report
Structural panel prices were higher due to steady sales. The OSB market entered the holiday weekend with an extra push of momentum, especially in the South. Mills in the Southeast sold the heaviest volumes and most readily found support for price increases. Sales of Southern Pine rated sheathing were decent. Truckloads available for quick shipment were most in demand, while carload sales lagged. Western Fir plywood sales were steady as momentum from early in the week carried into Friday.

(f.o.b. mill prices) This Week
Sep 2
Last Week
Aug 26
Year Ago
2015
Random Lengths Structural Panel Composite Price* $391 $390 $360
Southern (west-east) 15/32-inch 3-ply rated sheathing plywood 370-389 367-387 390-415
Southern (west-east) 15/32-inch 4-ply rated sheathing plywood 372-390 370-390 395-420
Western 1/2-inch 4-ply rated sheathing plywood 420 415 415
North Central 7/16-inch Oriented Strand Board 300 300 210
*Weighted average of 11 key items

Norbord orders OSB dryer with energy plant from Siempelkamp

The Canada-based Norbord OSB-manufacturing company will be relocating an existing continuous press from its factory in Alberta, Canada, to Inverness, Scotland. The order for a new OSB drum dryer with the corresponding energy plant has been placed with the Siempelkamp subsidiary Büttner.
The single-path drum dryer sized 6.5 x 36 R will have a throughput capacity for dry strands of 45 t/h. Along with the air process equipment, steel support structures and insulation, the scope of delivery will also include a 500 m³ wet-material horizontal metering bin, Siempelkamp stated.
The energy plant with a total combustion capacity of 55 MW will use a 75 m² grate to generate around 40 MW of flue gas for heating the dryers and 15 MW for heating thermal oil. As with the drum dryer, Büttner will also be supplying the entire range of equipment from a moving floor for the fuel storage to the primary circulation system for thermal oil, which will include the piping, brick lining, steel construction, and insulation.
The complete assembly of the dryer and energy plant is also part of Büttner's scope of delivery and is scheduled to be concluded by the middle of 2017.

The global forest industry in H1/2016: sawlog prices going up; softwood lumber markets growing steady

The Global Sawlog Price Index (GSPI) was up 4.2% in the 2Q/16 to $71.18/m3, the highest quarter-over-quarter increase since the 2Q/11.
The Euro-based European Sawlog Price Index (ESPI-€) has declined six percent over the past two years after a period when the Index was fairly stable from 2010 to 2014. The ESPI-€ was €83.84/m3 in the 2Q/16, up 1.8% from the previous quarter.
Global Pulpwood Prices
Both wood fiber price indices jumped in the 2Q/16 because prices increases were seen for both wood chips and pulplogs in practically every major market around the world. Continue reading "The global forest industry in H1/2016: sawlog prices going up; softwood lumber markets growing steady"

Chinese log imports up in volume in the first half of the year

China‘s log imports totalled 23.91 million cubic metres valued at US$3.97 billion in the first half of 2016, up 3% in volume and down 10% in value over the same period of 2015. The average landed price for imported logs was US$166 per cubic metre, a year on year fall of 13%.
Of the total, softwood log imports amounted to 16.12 million cubic metres, or 67% of all log imports, a year on year increase of 4%. Softwood log imports were mainly from the top 10 countries, namely New Zealand (5.61 million cu.m, down 3%), Russia (4.78 million cu.m, up 6%), the US (1.81 million cu.m, up 12%), Australia (1.56 million cu.m, up 37%), Canada (1.19 million cu.m, down 4%), Ukraine (0.52 million cu.m, up 3%), Japan (0.24 million cu.m, up 35%), France (0.08 million cu.m, up 25%), Belarus(0.08 million cu.m, up 25%), DPRK(0.08 million cu.m, up 25%).
Softwood log imports of these above-mentioned countries make up 99% of all softwood log imports. Softwood log imports from the top 5 countries account for 97% of all log imports
The average price for softwood log imports was about US$120 per cubic metre in the first half of 2016, a year on year decline of 7%.

EU imports of tropical sawnwood rise 11%

EU imports of tropical sawnwood have continued to recover slowly in 2016 from the depths of recession in early 2013. There was a particularly significant surge in trade in the second quarter of this year, notably from Cameroon.
EU imports of tropical sawnwood in the first five months of 2016 were 460,000 cu.m, 11% more than the same period in 2015. There were significant gains in imports from a wide range of countries including Cameroon (+31% to 166,400 cu.m), Gabon (+20% to 50,200 cu.m), Congo (+21 to 24,300 cu.m), DRC (+28% to 13,200 cu.m), Indonesia (+40% to 11,800 cu.m), Ghana (+15% to 10,900 cu.m) and Suriname (+56% to 10,000 cu.m).
These gains offset a decline in imports from Malaysia (- 8% to 59,900 cu.m) and Brazil (-16% to 53,600 cu.m).
The rise in EU imports of tropical sawnwood in the first five months of 2016 was concentrated in Belgium (+22% to 147,000 cu.m), Italy (+27% to 61,800 cu.m) and Spain (+24% to 31,000 cu.m). Imports into other leading destinations, including Netherlands, France, UK, Germany and Portugal, were very similar to the level in 2015.  Continue reading "EU imports of tropical sawnwood rise 11%"

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