Roundwood prices in Finland have slightly increased during April 2016. The price for pine logs yet decreased by -1.24%, while the spruce logs price has increased on a yearly basis by +3.55%.
Birch logs price has increased by +1.8%, as compared to the EUR 46.08/m3 during the same month of 2015. Continue reading "Finland: Roundwood prices higher than last year"
IKEA plans to invest $223 million in Mumbai, for a new store. This is part of the Swedish furniture company’s plan to open 25 stores across India by 2025.
The first IKEA store in India is planned to come up within 18 months in Navi Mumbai and there are more than 5 million visitors expected to come every year, according to The Indian Express.
“Ikea is starting to invest now. They have bought a big piece of land for $59,5 million in Navi Mumbai for their store,” said Apurva Chandra, Principal Secretary – Industries, Maharashtra government.
The world’s largest furniture retailer wants to build a 400,000 sq ft store on the land. Moreover, IKEA also announced the opening of a second store in Hyderabad in the second half of 2017, which will be a massive 4 lakh square feet in size and will include all features of a global Ikea store, including restaurant, play and development area, as reported by The Indian Express.
IKEA also searches for land to set up stores in Bengaluru, Delhi and the NCR region, after the company announced the purchase of 13 acre land close to the IT hub in Hyderabad’s HITEC city.
There are 30 years now that IKEA has been sourcing from India for its stores around the world. The furniture retailer now wants to double its sourcing by 2020. At the moment, the company sources products worth 300 million euro for its global operations from India.
In the next 25 years, the US might produce enough biomass as to support a bioeconomy. This includes both aquatic and terrestrial biomass resources which would create products for economic, environmental, social, and national security benefits.
According to a new study released by the US Department of Energy (DOE) and Oak Ridge National Laboratory (ORNL), the US can sustain and produce at least 1 billion dry tons (appr. 907 million metric tonnes) of non-food biomass resources annually by 2040. Continue reading "US might produce enough biomass for a bioeconomy within 25 years"
The pellet price in Germany has declined slightly in July due to seasonal reasons. Currently, pellets cost in Germany an average of 222.81 EUR per tonne (t). That's 1.0 percent less than in the previous month and 4.6 percent less than in July 2015.
Continue reading "Seasonal price drop for wood pellets in Germany"
UPM will commence discussions with the Government of Uruguay on the development of logistics infrastructure. Discussions will include railroad and roads, which currently are a critical challenge to establish large scale industrial operation in the Uruguayan inland and to connect it to a deep sea port.
"Uruguay could accommodate a third state-of-art pulp mill with proven environmental performance, if the logistics infrastructure would be rebuilt to support large scale export-oriented businesses. If these challenges can be solved in the coming few years, Uruguay could be a competitive alternative for addressing UPM's pulp market opportunities in the 2020's," says Jaakko Sarantola, UPM's Senior Vice President, Uruguay Development.
UPM estimates that healthy fibre demand growth will continue in the long term. By end of 2020's the world demand for chemical pulp is expected to grow by approximately 20 million tonnes. Some 24 million tonnes of capacity has been closed during the last 15 years and UPM expects the closures to continue at similar pace creating opportunity for new, more competitive capacity.
"In a short period of time Uruguay has created necessary conditions and successfully developed its pulp industry into an export business that has generated positive impacts to the country in many ways. UPM has been part of Uruguayan development for 25 years. We have consistently increased our plantation base in Uruguay and we are well-prepared to supply the wood for the third pulp mill in Uruguay," Sarantola added.
"We assess alternative growth prospects in different parts of the world. This prospective opportunity in Uruguay is well in line with our multifibre growth strategy. UPM is one of the few operators in the pulp market supplying both long and short fibre pulps for a broad range of customer sectors. The future capacity, along with UPM's current four world-class pulp mills, could serve customers in growing consumer and industrial end-uses like tissue, packaging and specialty papers and boards", concludes Sarantola.
Softwood lumber production by U.S. sawmills reached 10.718 billion board ft. (bbf) of in the first four months of 2016, a gain of 0.9% from 10.625 bbf in the same period last year, Continue reading "North American softwood lumber production rises through April"
An unexpected ‘wobble’ in the market has resulted in prices for sapele and sipo sawnwood dipping sharply. The volatility in prices for these two species is the result of a slowdown in purchases for China coinciding with the seasonal downturn in the traditional European markets as the summer vacation period begins.
Another factor for the price weakness is the higher level of sapele and sipo sawnwood production especially in Cameroon, Congo Brazzaville and Central African Republic. Mills in the region increased output to meet growing demand in Europe but now, due to the summer slowdown, production is well above consumption, Continue reading "Central/West Africa: Convergence of factors drives sapele and sipo sawnwood prices lower"
Wood pellets price in Switzerland started to go down in July. The average price for wood pellets quality ENplus A1 is 357.8 CHF per tonne, the equivalent of 329.7 EUR.
Compared to June 2016, the pellets price decreased by 0.58%, from 359.9 CHF per tonne. Continue reading "Switzerland: Pellet prices go down in July"
EACOM Timber Corporation, together with other such companies in Ontario, think that a new round of US duties on Canadian softwood lumber exports is inavoidable.
“The American market is critical for us. The majority of our shipments are destined to the U.S. 95% of Ontario’s forest products are destined to the U.S. For us at EACOM, we’re Ontario’s largest softwood producer with our five sawmills and so access to the U.S. market is critical for us to maintain and grow our operations,” said Christine Leduc, EACOM’s director of public affairs. Continue reading "EACOM Timber concerned about the lack of a softwood lumber agreement"
In May 2016 the value of Brazil’s wood product exports (except pulp and paper) fell 1.6% in compared to May 2015, from US$231.7 million to US$228.1 million.
On the other hand, Brazil's pine sawnwood export values rose just over 10% between May 2015 (US$25.5 million) and May 2016 (US$28.1 million). In terms of volume, exports increased 36% over the same period, from 111,900 cu.m to 152,300 cu.m.
Brazilian tropical sawnwood exports also increased in May rising 11% in volume, from 29,200 cu.m in May 2015 to 32,500 cu.m in May 2016. But the value of exports increased by just 4% from US$14.8 million to US$15.4 million, over the same period.
Brazil's plywood export performance was mixed with pine plywood exports falling 3% in value in May 2016 in comparison with May 2015, from US$35.6 million to US$34.5 million.
However, the volume of pine plywood exports increased almost 33%, from 99,100 cu.m to 131,700 cu.m, during the same period.
As for tropical plywood, export values and volumes both increased. Brazil's export volumes rose 27% from 9,500 cu.m in May 2015 to 12,100 cu.m in May 2016 while the value of exports increased almost 9% from US$4.6 million to US$5 million, during the same period.
As has been the general trend over recnt months, Brazilian wooden furniture export values dropped from US$38.7 million in May 2015 to US$36.2 million in May 2016, a 6.5% decline.
In May 2016 the value of Brazil’s wood product exports (except pulp and paper) fell 1.6% in compared to May 2015, from US$231.7 million to US$228.1 million.
On the other hand, Brazil's pine sawnwood export values rose just over 10% between May 2015 (US$25.5 million) and May 2016 (US$28.1 million). In terms of volume, exports increased 36% over the same period, from 111,900 cu.m to 152,300 cu.m.
Brazilian tropical sawnwood exports also increased in May rising 11% in volume, from 29,200 cu.m in May 2015 to 32,500 cu.m in May 2016. But the value of exports increased by just 4% from US$14.8 million to US$15.4 million, over the same period.
Brazil's plywood export performance was mixed with pine plywood exports falling 3% in value in May 2016 in comparison with May 2015, from US$35.6 million to US$34.5 million.
However, the volume of pine plywood exports increased almost 33%, from 99,100 cu.m to 131,700 cu.m, during the same period.
As for tropical plywood, export values and volumes both increased. Brazil's export volumes rose 27% from 9,500 cu.m in May 2015 to 12,100 cu.m in May 2016 while the value of exports increased almost 9% from US$4.6 million to US$5 million, during the same period.
As has been the general trend over recnt months, Brazilian wooden furniture export values dropped from US$38.7 million in May 2015 to US$36.2 million in May 2016, a 6.5% decline.
UK's timber and panels trade have started strong in 2016, Continue reading "UK timber and panel imports show strong 2016 start"
New Zealand continues to be the world’s leading exporter of softwood logs followed by Russia and the US. These three countries accounted for almost 50% of globally traded logs in 2015, with a majority being destined for the Chinese market.
New Zealand is exporting over 50% of the country’s total harvest in log form. In 2015, New Zealand exported 14.7 million m3 of radiata pine logs, of which almost ten million m3 was shipped to China, , according to the Wood Resource Quarterly (WRQ). Continue reading "New Zealand: Steady increase in softwood log shipments to Asia; export prices on the rise"
Despite the holidays in the US, the sales of framing lumber were bigger than expected. Buyers from all regions were eager to have their needs covered, especially in the South, were the area was affected by heat and humidity.
Also, an annual meeting of the industry in Idaho got together a big number of traders.
All in all, the Random Lengths Framing Lumber Composite Price went up $3 last week, reaching $352.
| Week July 15 | Week July 8 | Year Ago 2015 | |
| Random Lengths Framing Lumber Composite Price* | $352 | $349 | $348 |
| KD Western S-P-F #2&Btr 2x4 R/L Mill Price | 324 | 320 | 302 |
| KD Eastern S-P-F #1&2 2x4 R/L, delivered Great Lakes | 423 | 420 | 388 |
| Green Douglas Fir Std&Btr 2x4 R/L (Portland) | 353 | 353 | 347 |
| Southern Pine (Westside) #2 2x4 R/L | 389 | 383 | 342 |
| KD Coast Hem-Fir #2&Btr 2x4 R/L | 357 | 357 | 338 |
| Ponderosa Pine (Inland) #2&Btr 1x12 R/L | 705 | 705 | 670 |
| * Weighted average of 15 key items |
Random Lengths Panel Market Report
The structural panel prices varied last week. While the OSB prices increased, the gains varied by region. All the producing regions got intense activity, but the prices jumped the most in Western Canada.
Southern Pine plywood sales decreased as compared to previous weeks and Western Fir plywood trading kept a normal level throughout the week.
The prices continued to rise but not as sharply in sheathing as seen in the previous weeks.
| (f.o.b. mill prices) | Week July 15 | Week July 8 | Year Ago 2015 |
| Random Lengths Structural Panel Composite Price* | $391 | $383 | $357 |
| Southern (west-east) 15/32-inch 3-ply rated sheathing plywood | 378-407 | 375-397 | 385-420 |
| Southern (west-east) 15/32-inch 4-ply rated sheathing plywood | 382-417 | 380-410 | 385-420 |
| Western 1/2-inch 4-ply rated sheathing plywood | 417 | 412 | 390 |
| North Central 7/16-inch Oriented Strand Board | 298 | 285 | 203 |
| *Weighted average of 11 key items |
From the perspective of the tropical wood sector, Brexit will have significant implications. The UK is now by far the largest importer of tropical timber in the EU.
If all timber-based products are included (primary raw materials, secondary processed products and tertiary products like furniture), in 2015 the UK accounted for around 25% of the total value imported into the EU from tropical countries. This compares to 15% imported into France, the second largest EU market for tropical timber. Continue reading "Brexit likely to slow tropical imports in the short term"
The European Sawlog Price Index (ESPI), which represents nine major softwood sawlog markets in Europe, did not change much quarter-over-quarter and was €82.33/m3 in the 1Q/16. However, before this last quarter, the ESPI had been in steady decline for two years and in the first quarter of this year was nine percent below the 1Q/14 level. The biggest price declines since 2014, in Euro terms, have occurred in Austria, Germany and the Czech Republic.
Continue reading "Softwood sawlog prices trending down in Europe"
US hardwood plywood imports were down 1% in April, the fourth consecutive month-on-month decline. A total of 211,096 cu.m. were imported in April, worth US$122.1 million. Year-to-date import volumes remain slightly higher (+1%) than in April 2015, but the value of year-to date plywood imports decreased 7% compared to 2015.
Lower plywood imports from China and Indonesia were largely responsible for lower April figures. Continue reading "US: Fourth consecutive decline in hardwood plywood imports"
Britain's referendum decision to leave the EU has affected many Finnish forestry companies, because of the exchange rate turbulence.
Because the UK is a very important trade partner for Finland, companies including Metsä Group, will be affected financially. In fact, many stock markets stoop following Brexit, but some of them recovered very quickly due to the US dollar coming strong in the last period, Continue reading "Brexit's pound turbulence affects the Finnish forestry industry"
Britain's referendum decision to leave the EU has affected many Finnish forestry companies, because of the exchange rate turbulence.
Because the UK is a very important trade partner for Finland, companies including Metsä Group, will be affected financially. In fact, many stock markets stoop following Brexit, but some of them recovered very quickly due to the US dollar coming strong in the last period, Continue reading "Brexit’s pound turbulence affects the Finnish forestry industry"
Forests and sustainable forest management (SFM) continue to be firmly on the international climate change agenda. At the COP 21 conference, 195 countries agreed on the first universal and legally-binding global climate deal. The ambitious agreement aims to limit the global temperature increase to well below 2°C above pre-industrial levels by the end of the century.
Article 5 of the Paris Agreement strongly recognizes the role of forests and SFM in mitigating climate change.
According to a press release, Continue reading "How can European state forests contribute to post-2020 EU climate policy targets?"
Subscribe to our digital newsletter for your daily digest of essential news, views and analysis from the international wood industry delivered directly to your inbox.
0
