Italy is a leading European consumer of wood pellets (3.1 million metric tons in 2015), with domestic consumption representing 96% of the total use. Italy’s use of wood pellets is forecast to reach 5.0 Million Metric Tons (MMT) in 2020.
However, only 15% of the domestic demand is met by the domestic production, with the remaining 85% being covered by imports. Lombardia is the main production site, accounting for 45 percent of the national supply, followed by Veneto (18 percent), Friuli Venezia Giulia (16 percent), and Trentino Alto Adige (8 percent), Continue reading "Italy's wood pellets consumption expected to reach 5 MMT in 2020"
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Italy’s wood pellets consumption expected to reach 5 MMT in 2020
Italy is a leading European consumer of wood pellets (3.1 million metric tons in 2015), with domestic consumption representing 96% of the total use. Italy’s use of wood pellets is forecast to reach 5.0 Million Metric Tons (MMT) in 2020.
However, only 15% of the domestic demand is met by the domestic production, with the remaining 85% being covered by imports. Lombardia is the main production site, accounting for 45 percent of the national supply, followed by Veneto (18 percent), Friuli Venezia Giulia (16 percent), and Trentino Alto Adige (8 percent), Continue reading "Italy’s wood pellets consumption expected to reach 5 MMT in 2020"
Lumber prices in the US dropped last week
Framing lumber sales were weak at the middle of August, while the prices decreased for several wood species. The fear of downside risk caused by the weather and the vacation was the reason for the stagnation. While the cuts were generally modest, some double-digit declines were posted in Southern Pine. The Random Lengths Framing Lumber Composite Price slipped $1, its first drop since July 1.
| This Week Aug 19 |
Last Week Aug 12 |
Year Ago 2015 |
|
| Random Lengths Framing Lumber Composite Price* | $368 | $369 | $326 |
| KD Western S-P-F #2&Btr 2x4 R/L Mill Price | 329 | 330 | 276 |
| KD Eastern S-P-F #1&2 2x4 R/L, delivered Great Lakes | 431 | 431 | 377 |
| Green Douglas Fir Std&Btr 2x4 R/L (Portland) | 345 | 350 | 330 |
| Southern Pine (Westside) #2 2x4 R/L | 426 | 426 | 333 |
| KD Coast Hem-Fir #2&Btr 2x4 R/L | 335 | 345 | 317 |
| Ponderosa Pine (Inland) #2&Btr 1x12 R/L | 700 | 705 | 665 |
| * Weighted average of 15 key items | |||
Random Lengths Panel Market Report
The price decline was higher than the gains on the structural panel markets. OSB prices went smoothly all around the producing region. Double-digit cuts were most prominent in Western Canada and parts of the South. Prices of Southern Pine rated sheathing were widely perceived to have touched a bottom. Most mill order files reached the week of August 29.
| (f.o.b. mill prices) | This Week Aug 19 |
Last Week Aug 12 |
Year Ago 2015 |
| Random Lengths Structural Panel Composite Price* | $392 | $394 | $346 |
| Southern (west-east) 15/32-inch 3-ply rated sheathing plywood | 367-387 | 365-385 | 363-405 |
| Southern (west-east) 15/32-inch 4-ply rated sheathing plywood | 367-387 | 365-387 | 368-410 |
| Western 1/2-inch 4-ply rated sheathing plywood | 405 | 413 | 389 |
| North Central 7/16-inch Oriented Strand Board | 305 | 310 | 200 |
| *Weighted average of 11 key items | |||
EU opens doors to Indonesia's licensing scheme for exports of verified legal timber
The European Commission has amended the EU Forest Law Enforcement, Governance and Trade Regulation (FLEGT) to recognise Indonesia’s licensing scheme for exports of verified legal timber to the EU.
One third (by value) of the EU's tropical timber imports comes from Indonesia and the EU buys 11% of timber products and paper exported from the country. Continue reading "EU opens doors to Indonesia's licensing scheme for exports of verified legal timber"
EU opens doors to Indonesia’s licensing scheme for exports of verified legal timber
The European Commission has amended the EU Forest Law Enforcement, Governance and Trade Regulation (FLEGT) to recognise Indonesia’s licensing scheme for exports of verified legal timber to the EU.
One third (by value) of the EU's tropical timber imports comes from Indonesia and the EU buys 11% of timber products and paper exported from the country. Continue reading "EU opens doors to Indonesia’s licensing scheme for exports of verified legal timber"
Central/West Africa: No logs & sawnwood price movements in expectation of UK referendum effects
The slight weakness in prices for sipo and sapele was reigned in over the past two weeks and there is no news of further price movements either up or down. On all producer’s minds is what effect the turmoil after the UK referendum will have on exports. The massive decline in the sterling exchange rate against the US dollar and euro could have a significant impact on exports. Sterling has recovered slightly from the lows immediately after the referendum but there is a risk that it will remain weakened for some time.
West and Central African producers price exports in euros for EU markets and so far there has been no pressure from buyers in either the EU or UK to lower prices and there has been no pressure (so far) from buyers outside of Europe for an adjustment of prices. Continue reading "Central/West Africa: No logs & sawnwood price movements in expectation of UK referendum effects"
Central/West Africa: No logs & sawnwood price movements in expectation of UK referendum effects
The slight weakness in prices for sipo and sapele was reigned in over the past two weeks and there is no news of further price movements either up or down. On all producer’s minds is what effect the turmoil after the UK referendum will have on exports. The massive decline in the sterling exchange rate against the US dollar and euro could have a significant impact on exports. Sterling has recovered slightly from the lows immediately after the referendum but there is a risk that it will remain weakened for some time.
West and Central African producers price exports in euros for EU markets and so far there has been no pressure from buyers in either the EU or UK to lower prices and there has been no pressure (so far) from buyers outside of Europe for an adjustment of prices. Continue reading "Central/West Africa: No logs & sawnwood price movements in expectation of UK referendum effects"
Swedish housing starts reach highest level in 25 years
Swedish housing starts increased reached the highest level in a quarter of a century in the first half of 2016.as the country is trying to get out of a housing shortage that threatens the economic growth, Reuters reported.
Housing starts rose to 33,950 in the January to June period, a 44 percent increase compared to the same period in 2015, preliminary figures from Statistics Sweden showed.
The number of housing starts was the highest since the second half of 1990.
Decades of under-construction combined with a fast-growing population have fuelled a property bubble and led to concerns over labour mobility.
Music streaming giant Spotify warned politicians in April that a lack of housing was a major risk factor in its plans to employ thousands of new workers in the capital, Stockholm, in the coming years.
In order to ease the shortage the Social Democrat-led government set a target of building 700,000 homes by 2025.
European imports of Chinese plywood drop sharply in H1/2016 as British demand slows
Plywood exports from China to the European Union decreased by -18% during the first half of 2016, as compared to the same period last year.
The top import source was the United Kingdom, that imported EUR 86,7 million worth of Chinese plywood. Yet, the value dropped by -20% as compared to January-June 2015, dragging down the overall European imports. Belgium came in second place as the country imported EUR 20,4 million worth of plywood, dropping -26% since the first half of 2015.
Moreover, Germany's plywood imports also decreased by -10%, to EUR 11.6 million.
All in all, the plywood exports from China to the EU decreased from approximately EUR 196 million in the first half of 2015 to approximately EUR 160 million in the first six months of 2016.
The Netherlands' plywood worth of imports remained almost the same, at a value of EUR 7.10 million, as compared to the EUR 7.13 million imported during the mentioned period of last year.
The top import source was the United Kingdom, that imported EUR 86,7 million worth of Chinese plywood. Yet, the value dropped by -20% as compared to January-June 2015, dragging down the overall European imports. Belgium came in second place as the country imported EUR 20,4 million worth of plywood, dropping -26% since the first half of 2015.
Moreover, Germany's plywood imports also decreased by -10%, to EUR 11.6 million.
All in all, the plywood exports from China to the EU decreased from approximately EUR 196 million in the first half of 2015 to approximately EUR 160 million in the first six months of 2016.
The Netherlands' plywood worth of imports remained almost the same, at a value of EUR 7.10 million, as compared to the EUR 7.13 million imported during the mentioned period of last year.
|
TOP Importing Countries Plywood imported from China by... (in EUR ); HS Code: 44123 |
I-VI 2015 |
I-VI 2016 |
Change in % | |||
|
196,104,568 | 160,134,760 | -18 % | |||
|
108,555,928 | 86,730,711 | -20 % | |||
|
27,426,240 | 20,430,960 | -26 % | |||
|
12,967,160 | 11,672,200 | -10 % | |||
|
10,336,250 | 10,528,420 | 2 % | |||
|
7,131,070 | 7,109,840 | 0 % | |||
|
29,687,920 | 23,662,630 | -20 % | |||
|
151,780 | 117,410 | -23 % | |||
| TOTAL | 196,256,348 | 160,252,170 | -18 % |
Canada and the US still far from reaching new lumber trade deal
Canada’s chief negotiator, Martin Moen, claims that there are several key issues that still keep the US and Canada far away from reaching a new agreement regarding the renewal of the Softwood Lumber Agreement.
The previous SLA expired in October 2015 and the two countries are now under a one-year standstill period, during which the US can’t impose any new duties on the lumber coming from Canada.
As reported by the Canadian Press, Martin Moen told a parliamentary committee today that negotiations for a new softwood deal have continued at an intense pace and have reached the highest levels. But despite the efforts, Moen acknowledges reaching a deal by the fall deadline will be challenging.
"Although discussions have been constructive and have led to a better understanding of each party's positions and concerns, Canada and the U.S. — I have to be honest — we do remain far apart on several key issues," Moen said in Ottawa.
He added that there is a strong possibility that the two countries won’t reach any deal and thus Canada would be forced into litigation. Without any agreement, the Canadian officials aren’t aware of what the US industry might decide regarding the lumber imports from Canada.
Prime Minister Justin Trudeau has spoken with U.S. President Barack Obama about the need to strike a new softwood lumber deal. The leaders have expressed optimism that a compromise could stave off fresh battles in the long-running softwood-lumber war, according to the Canadian Press.
There have been 12 meetings between Canada and the US, among other numerous teleconferences, as to try and find a solution to the trade issue. A new meeting is already scheduled for next week.
Japan: International environmental groups demand only verified legal wood to be utilised
Japan should take control on the use of the legally proved wood, as advised by 18 international environmental protecting groups. The country’s government is also advised to secure the participation of corporations in the wood industry.
The international environmental groups submitted a note to the Prime Minister Abe in which they also said that the law to promote using legal wood may not be enough to stop dealing of illegally harvested wood. The law was promised at the recent G7 meeting.
The note requests that every company that imports wood from suppliers and has doubts of dealing of illegal harvested wood must be registered according to the new law. If there is a risk of dealing with the risk of illegal harvest, the wood importer must obtain reliable independent information to prove legality.
If registered member fails to respect the law, its registration must be canceled and the name must be disclosed publicly.
The note was submitted by the following 18 groups: Global Witness, Environmental Investigation Agency, Market for change, Center for International Environmental Law, National Wildlife Federation, Green Peace Japan, Green Peace International, Rainforest Action Network, Bruno Manser Funds, Japan Tropical Forest Action Network, Sarawak Campaign Committee, Global Environmental Forum, International Environment NGO, Friends of the Earth Japan, International NGO Human Rights Now, FERN, Sierra Club, Rainforest Foundation Norway and CPI.
US government confirms illegal timber imports from Peru
In a report released yesterday by the U.S. government, Peruvian timber imported to the United States in January 2015 has been identified as largely illegally sourced, offering the latest example of illicit timber trafficking from Peru to the United States.
As reported by the EIA, Continue reading "US government confirms illegal timber imports from Peru"
World's largest CHP biomass plant to be built in UK
MGT Teesside Limited announced on the 11th of August the construction of the biggest biomass combined heat and power plant in the world.
The plant will be built in Middlesborough in northeast England and the preparation for the site will begin in a few weeks. The Teesside biomass CHP plant at Teesport has invested £650 million in the project. The main construction works is due to start a few months later and the commercial operations are planned to start in 2020.
Back in July, MGT Power announced a partnership with Macquarie Capital and Macquarie Commodities and Financial Markets to deliver the project. Macquarie and Danish pension fund PKA, will now become the joint owners of MGT Teesside, which will own and manage the Tees Renewable Energy Plant (Tees REP).
The project will be built under a turn-key “engineering, procurement and construction” contract by a consortium of Tecnicas Reunidas of Spain and Samsung Construction and Trading (SCT) of South Korea.
“The Tees REP project has had to overcome many hurdles in development but we have now successfully reached the next stage despite the difficult financing environment,” said Ben Elsworth, CEO of MGT Teesside.
At least 600 jobs will be created during construction and about 100 full time jobs sustained on site once operational plus several hundred more in the supply chain – many in the local region. Biomass discharge services will be provided by PD Ports through the port of Teesport.
Tees REP will be fuelled by wood pellets and chips from the United States and Europe that will be delivered directly via ships arriving at Tees Dock adjacent to the plant. It will generate enough electricity to supply approximately 600,000 households as well as heat for supply on site and for nearby users. Biomass fuel will be delivered directly to the CHP plant from ships arriving at the adjacent Tees Dock.
The CHP plant will be compromised of one “circulating fluidised bed” boiler, which will produce steam which will be driven by a single steam turbine generating electricity that will be exported directly to the high voltage national grid system.
World’s largest CHP biomass plant to be built in UK
MGT Teesside Limited announced on the 11th of August the construction of the biggest biomass combined heat and power plant in the world.
The plant will be built in Middlesborough in northeast England and the preparation for the site will begin in a few weeks. The Teesside biomass CHP plant at Teesport has invested £650 million in the project. The main construction works is due to start a few months later and the commercial operations are planned to start in 2020.
Back in July, MGT Power announced a partnership with Macquarie Capital and Macquarie Commodities and Financial Markets to deliver the project. Macquarie and Danish pension fund PKA, will now become the joint owners of MGT Teesside, which will own and manage the Tees Renewable Energy Plant (Tees REP).
The project will be built under a turn-key “engineering, procurement and construction” contract by a consortium of Tecnicas Reunidas of Spain and Samsung Construction and Trading (SCT) of South Korea.
“The Tees REP project has had to overcome many hurdles in development but we have now successfully reached the next stage despite the difficult financing environment,” said Ben Elsworth, CEO of MGT Teesside.
At least 600 jobs will be created during construction and about 100 full time jobs sustained on site once operational plus several hundred more in the supply chain – many in the local region. Biomass discharge services will be provided by PD Ports through the port of Teesport.
Tees REP will be fuelled by wood pellets and chips from the United States and Europe that will be delivered directly via ships arriving at Tees Dock adjacent to the plant. It will generate enough electricity to supply approximately 600,000 households as well as heat for supply on site and for nearby users. Biomass fuel will be delivered directly to the CHP plant from ships arriving at the adjacent Tees Dock.
The CHP plant will be compromised of one “circulating fluidised bed” boiler, which will produce steam which will be driven by a single steam turbine generating electricity that will be exported directly to the high voltage national grid system.
Nippon Paper aims to become a player on the wood pellet market
Nippon Paper Industries, Tokyo, plans to start roasting the wood pellets as to produce biomass fuel in fiscal 2018. The company’s project includes the production of heavy efficient-burning wood pellets as to use them as biomass fuel for electricity generation.
As reported by Nikkei Asian Review, through a process called torrefaction, the Japanese paper company plans to produce biomass fuel. This implies roasting it, by heating the wood at low temperatures for an hour. During this time, the wood releases a substance capable to burn by doubling the heat volume of the wood chips. Thus, the power generation efficiency also doubles. Continue reading "Nippon Paper aims to become a player on the wood pellet market"
Russia's Siberian sawmills have become the most profitable in the world due to Rouble depreciation
The sharp depreciation of the Russian Rouble has resulted in substantially lower sawlog costs for the sawmilling industry in Eastern Russia during 2015 and 2016. Lumber prices in Russia have also declined the past few years, but not at the same rate as prices for sawlogs, and as a result sawmills in Siberia have become some of the most profitable sawmills in the world.
According to Wood Resource Quarterly (WRQ), Continue reading "Russia's Siberian sawmills have become the most profitable in the world due to Rouble depreciation"
Russia’s Siberian sawmills have become the most profitable in the world due to Rouble depreciation
The sharp depreciation of the Russian Rouble has resulted in substantially lower sawlog costs for the sawmilling industry in Eastern Russia during 2015 and 2016. Lumber prices in Russia have also declined the past few years, but not at the same rate as prices for sawlogs, and as a result sawmills in Siberia have become some of the most profitable sawmills in the world.
According to Wood Resource Quarterly (WRQ), Continue reading "Russia’s Siberian sawmills have become the most profitable in the world due to Rouble depreciation"
UK: LBS acquires Talbot Timber acquisition
LBS Builders’ Merchants, UK, has acquired Talbot Timber, closing the biggest acquisition until now. Continue reading "UK: LBS acquires Talbot Timber acquisition"
U.S. housing starts rise unexpectedly in July
U.S. housing starts increased unexpectedly in July, according to data released by the U.S. Commerce Department. Housing starts increased 2.1 percent to a seasonally adjusted annual pace of 1.2 million units, the highest level since February, the Commerce Department said on Tuesday. June's starts were largely unchanged at a 1.19 million-unit rate.
Building permits dipped 0.1 percent to a 1.15 million-unit rate last month. Economists polled by Reuters had forecast housing starts slipping to a 1.18 million-unit pace last month and building permits rising to a 1.16 million-unit rate.
Investment in residential construction contracted in the second quarter for the first time in more than two years.
That, together with an outright decline in inventory investment, a continued downturn in business spending and weak government outlays, held gross domestic product to a 1.2 percent annualized growth rate during the quarter.
Investment in residential construction contracted in the second quarter for the first time in more than two years.
That, together with an outright decline in inventory investment, a continued downturn in business spending and weak government outlays, held gross domestic product to a 1.2 percent annualized growth rate during the quarter.
Canada-US: Special hearing on the softwood lumber trade dispute
A special hearing is held in Ottawa this week regarding the softwood lumber trade dispute between the US and Canada.
In the letter requesting the meeting, Conservative MP Randy Hoback wrote that softwood lumber was an important part of Canada's forest sector, and noted that the country's softwood lumber producers rely on the exports they send to the U.S. Continue reading "Canada-US: Special hearing on the softwood lumber trade dispute"
