Many micro, small and medium enterprises in Indonesia, which are selling export-oriented furniture, haven’t received the Wood Legality Verification System (SVLK) due to the inconsistency of the regulation.
Only 25 furniture-based association members, out of 125, have obtained the SVLK certification, Continue reading "Indonesia: Furniture industry stressed by SVLK certification"
Article archive
Latvia: Forestry products exports grow by 5%
Latvia exported EUR 894.52 million worth of forestry industry products in the first five months of 2016, growing 5% compared to the same period of 2015.
As reported by LETA Latvian News Agency, timber and timber products made up the bulk or 86.1% of total forestry product exports in the first five months of 2016 (85.5% in Jan-May 2015), Continue reading "Latvia: Forestry products exports grow by 5%"
Barlinek to build wood processing plant in Russia
UK's Drax runs 70% on wood pellets
The biggest coal station in the UK is powered mainly by wood pellets at the moment. Drax Group Plc, the owner of the power station, still has to find out if the complete transition of another unit to run on renewable fuel is possible.
Drax’s North Yorkshire-based plant was 70% provided with biomass during the first half of 2016, compared to the 37% of the same period from 2015. Meanwhile, the company had upgraded a third unit to run on wood pellets, Continue reading "UK's Drax runs 70% on wood pellets"
UK’s Drax runs 70% on wood pellets
The biggest coal station in the UK is powered mainly by wood pellets at the moment. Drax Group Plc, the owner of the power station, still has to find out if the complete transition of another unit to run on renewable fuel is possible.
Drax’s North Yorkshire-based plant was 70% provided with biomass during the first half of 2016, compared to the 37% of the same period from 2015. Meanwhile, the company had upgraded a third unit to run on wood pellets, Continue reading "UK’s Drax runs 70% on wood pellets"
Finland: Roundwood prices got higher in May
Roundwood prices in Finland have slightly increased during May 2016, as compared to the previous year.
Only birch pulpwood price decreased by -1.27%, as compared to May 2015. All the other pulpwood prices increased to some extent. Spruce price went up by 1.45% as compared to 2015, but decreased by the same percent as compared to the previous month.
Also, the price for pine increased by 0.86% as compared to the same month of 2015, but went down by -0.42% as compared to April 2016. Continue reading "Finland: Roundwood prices got higher in May"
Malaysia: Timber exports likely to remain at EUR 5 billion mark in 2016
Timber exports from Malaysia are most likely to hold on to the global stable demand and remain at EUR 5 billion.
During the first five months of 2016, there has been a reported EUR 2 million gains from timber exports, “the bulk of it contributed by wood and rattan furniture," said Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong. Continue reading "Malaysia: Timber exports likely to remain at EUR 5 billion mark in 2016"
Higher OSB prices and shipments boost Norbord's revenues
Norbord Inc. reported adjusted EBITDA of $94 million for the second quarter of 2016 versus $19 million in the second quarter of 2015 and $61 million in the first quarter of 2016. The improvement versus both comparative periods is primarily due to higher North American oriented strand board (OSB) prices and shipment volumes. North American operations generated adjusted EBITDA of $85 million in the quarter compared to $11 million in the same quarter last year and $53 million in the prior quarter. European operations delivered adjusted EBITDA of $11 million compared to $10 million in both comparative quarters.
“Our financial and operational performance continued to improve in the second quarter. Our adjusted EBITDA has increased for six consecutive quarters and so far in 2016, we have generated $120 million more in adjusted EBITDA than this time last year. Further, our adjusted earnings were more than double the first quarter,” said Peter Wijnbergen, Norbord’s President and CEO. “Our North American mills produced at 96% of stated capacity during the quarter. The benchmark OSB spot price is currently up 44% since its February low, the highest level in over three years. We see further upside to our performance as recovering US housing starts, particularly single-family, continue to drive increasing OSB demand.” Continue reading "Higher OSB prices and shipments boost Norbord's revenues"
Higher OSB prices and shipments boost Norbord’s revenues
Norbord Inc. reported adjusted EBITDA of $94 million for the second quarter of 2016 versus $19 million in the second quarter of 2015 and $61 million in the first quarter of 2016. The improvement versus both comparative periods is primarily due to higher North American oriented strand board (OSB) prices and shipment volumes. North American operations generated adjusted EBITDA of $85 million in the quarter compared to $11 million in the same quarter last year and $53 million in the prior quarter. European operations delivered adjusted EBITDA of $11 million compared to $10 million in both comparative quarters.
“Our financial and operational performance continued to improve in the second quarter. Our adjusted EBITDA has increased for six consecutive quarters and so far in 2016, we have generated $120 million more in adjusted EBITDA than this time last year. Further, our adjusted earnings were more than double the first quarter,” said Peter Wijnbergen, Norbord’s President and CEO. “Our North American mills produced at 96% of stated capacity during the quarter. The benchmark OSB spot price is currently up 44% since its February low, the highest level in over three years. We see further upside to our performance as recovering US housing starts, particularly single-family, continue to drive increasing OSB demand.” Continue reading "Higher OSB prices and shipments boost Norbord’s revenues"
NZ export log prices reach 7-month low
New Zealand export log prices reach 7-month low in July due to higher local currency and weaker prices in key export markets.
Thus, the average wharf gate price for New Zealand A-grade logs dropped to $114 a tonne, as compared to the price in June, of $116 a tonne, registering the lowest level since the $104 a tonne from December 2015, Continue reading "NZ export log prices reach 7-month low"
Stora Enso announces lower sales for its Wood Products division
For the second quarter of 2016, Stora Enso reported EUR 8 million lower sales in its Wood Products division. Sales declined as compared to Q2/2015 (by -1.8%) and increased as compared to Q1/2016 (13.4%).
Also, the operational EBIT improved EUR 10 million, mainly due to higher deliveries, improved product mix, and lower log prices. It thus grew by 28.1% since the Q2/2015 and by 78.3% as compared to the Q1 of 2016. Continue reading "Stora Enso announces lower sales for its Wood Products division"
IKEA might buy more forests in Romania
IKEA has boosted the capital of IRI Investments, the company that bought 33,000 hectares of forest in Romania last year on behalf of the Swedish giant, with EUR 40 million in June. The company’s share capital has reached EUR 171 million, Continue reading "IKEA might buy more forests in Romania"
China accounted for 57% of worldwide furniture shipments in 2015
China’s furniture industry has been long challenged by its shortages in the field. Rising labors costs, together with labor deficit and factory closings have forced China to shift many of the products to Vietnam.
Also, China is one of the most important international source country for U.S. wholesalers and retailers alike. In 2015, for example, China shipped $13.7 billion in residential furniture to the U.S. market, up nearly 12% from the year before. In addition to achieving double-digit growth off an already large number, the country accounted for 57% of the total $23.9 billion in wholesale furniture shipments from around the world, Continue reading "China accounted for 57% of worldwide furniture shipments in 2015"
Vietnam: Wooden furniture exports on the rise
A $6.9 billion worth of wooden furniture products has been exported from Vietnam during 2015, reaching 10.7% increase as compared to 2014. The turnover for wood and wooden exports amounted to $2.68 billion between January-May 2016, increasing by 2.08% compared to the same period of 2014. Considering the export growth rate at the moment, the turnover for the first half of 2016 might increase by 3.5%, Continue reading "Vietnam: Wooden furniture exports on the rise"
Production in EU construction falls in April
In May 2016 compared with April 2016, seasonally adjusted production in the construction sector fell by 0.5% in the euro area (EA19) and by 0.7% in the EU28, according to first estimates from Eurostat, the statistical office of the European Union. In April 2016, production in construction fell by 0.3% in the euro area, while it grew by 0.6% in the EU28.
In May 2016 compared with May 2015, production in construction fell by 0.8% in the euro area and by 1.1% in the EU28.
Monthly comparison by construction sector and by Member State
The decrease of 0.5% in production in construction in the euro area in May 2016, compared with April 2016, is due to civil engineering falling by 1.9% and building construction by 0.3%.
In the EU28, the decrease of 0.7% is due to civil engineering falling by 1.9% and building construction by 0.5%.
Among Member States for which data are available, the largest decreases in production in construction were recorded in Italy (-3.6%), Romania (-3.0%) and the United Kingdom (-2.3%), and the highest increases in Sweden (+3.4%), the Czech Republic (+2.8%) and Slovenia (+2.6%).
Annual comparison by construction sector and by Member State
The decrease of 0.8% in production in construction in the euro area in May 2016, compared with May 2015, is due to civil engineering falling by 1.7% and building construction by 0.7%.
In the EU28, the decrease of 1.1% is due to civil engineering falling by 6.6%, while building construction grew by 0.1%.
Among Member States for which data are available, the largest decreases in production in construction were recorded in Hungary (-26.6%), Slovenia (-21.2%) and Poland (-13.8%), while increases were observed in Sweden (+14.4%), Romania (+7.5%), Spain (+3.1%) and the Netherlands (+2.1%).
World's tallest timber tower could be built in Amsterdam
HAUT, the 21-storey wooden residential building by the Dutch River Amstel, is a serious contender to become the tallest timber tower in the world. The municipality of Amsterdam has selected Team V Architecture with Lingotto, Nicole Maarsen, ARUP and brand partner NLE to develop this remarkable high-rise structure. Construction work is expected to start in the second half of 2017. HAUT promises to be a prototype of building in an innovative, sustainable and environmentally-friendly manner.
The use of timber in high-rise buildings is one of the most keenly discussed innovations in the 
construction industry worldwide. It represents an important step towards the carbon-neutral city: Continue reading "World's tallest timber tower could be built in Amsterdam"
World’s tallest timber tower could be built in Amsterdam
HAUT, the 21-storey wooden residential building by the Dutch River Amstel, is a serious contender to become the tallest timber tower in the world. The municipality of Amsterdam has selected Team V Architecture with Lingotto, Nicole Maarsen, ARUP and brand partner NLE to develop this remarkable high-rise structure. Construction work is expected to start in the second half of 2017. HAUT promises to be a prototype of building in an innovative, sustainable and environmentally-friendly manner.
The use of timber in high-rise buildings is one of the most keenly discussed innovations in the construction industry worldwide. It represents an important step towards the carbon-neutral city: Continue reading "World’s tallest timber tower could be built in Amsterdam"
Uncertain policy implications after Brexit
There are also uncertain policy implications for the timber sector associated with Brexit. UK technical standards for the vast majority of building products are now set at EU level under the terms of the EU Construction Products Regulation.
This situation won’t change any time soon, particularly as even after the UK has left the EU, UK manufacturers selling any product into the EU will have to continue to abide by EU standards. However, the UK’s exit from the EU would open the door to gradual divergence of UK and EU standards for construction and other products.
The same could be said of regulatory requirements like the EU Timber Regulation (EUTR), although again it’s unlikely that there will be any significant change in the terms of this regulation in the UK in the foreseeable future. Continue reading "Uncertain policy implications after Brexit"
Austria: Price of wood pellets on a stable trend in July
Austrian pellets price recorded an average of EUR 222.7 per kg of Enplus A1 pellets. This represents a 0.1% increase from June 2016 and a -2.9% drop, as compared to the previous year. Continue reading "Austria: Price of wood pellets on a stable trend in July"
Latest prices of teak logs, sawnwood and plywood in India
The current pace of deliveries matches demand, thus C&F prices remain stable.
Prices for imported plantation teak, C&F Indian ports
| US$ per m3 | |
| Angola logs | 459-574 |
| Belize logs | 350-400 |
| Benin logs | 290-614 |
| Benin sawn | 530-872 |
| Brazil logs | 321-665 |
| Brazil squares | 370-558 |
| Cameroon logs | 405-616 |
| Colombia logs | 428-775 |
| Congo logs | 450-761 |
| Costa Rica logs | 320-780 |
| Côte d'Ivoire logs | 289-756 |
| Ecuador squares | 254-564 |
| El-Salvador logs | 399-732 |
| Ghana logs | 276-434 |
| Guatemala logs | 360-451 |
| Guyana logs | 300-450 |
| Kenya logs | 515-876 |
| Laos logs | 300-605 |
| Liberia logs | 265-460 |
| Malaysian logs | 225-516 |
| Mexican logs | 515 |
| Nicaragua logs | 402-505 |
| Panama logs | 368-430 |
| PNG logs | 443-575 |
| Sudan logs | 488-857 |
| Tanzania, teak, sawn | 307-613 |
| Thailand logs | 511-700 |
| Togo logs | 354-590 |
| Trinidad and Tobago logs | 557-680 |
| Uganda logs | 411-576 |
| Uganda Teak sawn | 680-900 |
Variations are based on quality, length and average girth of logs.
Prices for locally sawn hardwoods
The US dollar/Rupee exchange rate continues to trade in a narrow band, allowing importers to maintain past price levels.
| Sawnwood, (Ex-mill) (AD) | Rs. per ft3 |
|
Merbau
|
2400-2650 |
|
Balau
|
1750-1950 |
|
Resak
|
1250-1450 |
|
Kapur
|
1750-1890 |
|
Kempas
|
1250-1350 |
|
Red Meranti
|
1200-1350 |
|
Radiata pine AD
|
850-950 |
|
Whitewood
|
850-950 |
Myanmar teak flitches resawn in India
Ex-mill prices for sawn teak reamin unchanged.
| 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
Overall, prices remain unchanged, except for American walnut, for which firm demand resulted in an upward pressure on prices.
| 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
| 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
