Wood pellets’ retail price in Switzerland strongly declined in May, as it was expected due to this time of the year. Thus, the average price reached 353.3 CHF/tonne (319.69 EUR/tonne), which is 6.4% less than the previous month and 5.1% lower than in May 2015.
Continue reading "Wood pellets' price registers strong decline in Switzerland"
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Wood pellets’ price registers strong decline in Switzerland
Wood pellets’ retail price in Switzerland strongly declined in May, as it was expected due to this time of the year. Thus, the average price reached 353.3 CHF/tonne (319.69 EUR/tonne), which is 6.4% less than the previous month and 5.1% lower than in May 2015.
Continue reading "Wood pellets’ price registers strong decline in Switzerland"
UPM to change its corporate structure in Finland
UPM-Kymmene Corporation is proceeding with the plan to change its corporate structure in Finland to better match its current business structure. UPM announced the plan on 10 December 2015.
Three new subsidiaries have been established in Finland: UPM Energy Oy, UPM Paper Asia Oy and UPM Paper ENA Oy. The personnel and assets of UPM Energy, UPM Paper Asia and UPM Paper ENA (Europe and North America) in Finland are planned to be transferred to the new companies on 1 July 2016.
UPM Raflatac and UPM Plywood operate already in their own subsidiaries in Finland. UPM Biorefining will remain in UPM-Kymmene Corporation.
The UPM business structure and operating model of businesses will remain as today. The arrangement has minor impact on day-to-day operations. The staff will transfer to the new companies with existing terms and conditions.The corporate structure change does not include personnel reductions.
Eastern Canadian pulp mills more competitive
Wood costs for pulp mills in Eastern Canada have fallen dramatically the past four years, and the region has some of the lowest wood fiber costs in North America. In 2012, pulp mills in Ontario and Quebec had some of the highest wood fiber costs on the continent.
Softwood fiber prices in Eastern Canada have been in steady decline for over four years, and in the 1Q/16 were at their lowest levels in almost 15 years. The shrinking pulp industry in Ontario and Quebec has become more competitive with fiber costs matching many other regions of North America in early 2016, as reported in the North American Wood Fiber Review (NAWFR). In US dollar terms, softwood chips and pulplogs costs were down 37% and 27%, respectively in the 1Q/16 as compared to the 1Q/12.
Although much of the decline can be contributed to a stronger US dollar, wood chip prices have also fallen substantially in Canadian dollar terms. Softwood chip prices in Canadian dollars were 16% below 2012 levels, and they are actually at their lowest levels since NAWFR started tracking wood fiber prices in Eastern Canada in 1988. Chip prices in Quebec and Eastern Ontario are currently on par with prices in Western Canada and the US South, and they are substantially lower than in the US Northwest, the Lake States and the US Northeast. This has been quite a remarkable turn-around from four years ago when the region’s pulp mills had some of the highest wood fiber costs in North America.
Pulpwood prices (in Canadian dollar terms) in the Maritime Provinces fell in the 1Q/16 for the second consecutive quarter. The primary reasons for the recent price declines were full fiber inventories at the region’s pulp mills, and good access to the forests which resulted in a healthy flow of logs to the manufacturing plants. The collapse of the softwood log market in neighboring Maine has also had an impact on fiber prices in Eastern Canada over the past six months.
The hardwood pulplog price eased modestly in early 2016 due to healthy fiber inventories. Despite the fact that there has been a plentiful supply of logs over the past winter, hardwood log prices have not come down as much as have softwood logs, and are still near their highest levels in 20 years (in Canadian dollar terms).
German wood pellets cheaper by 5% over last year
The pellets price in Germany fell slightly in May due to the end of the heating season. Thus, the average price for German ENplus A1 quality wood pellets reached 228.18 EUR per tonne, as the German Energy Wood and Pellet Association (DEPV) reported.
Continue reading "German wood pellets cheaper by 5% over last year"
Canadian and US officials meet to discuss softwood lumber issues
The Canadian and US officials will met in Ottawa this week to discuss about the terms of a new agreement regarding the softwood lumber trade dispute, as Minister Chrystia Freeland said last week.
As Bloomberg BNA reported, Continue reading "Canadian and US officials meet to discuss softwood lumber issues"
EU's €1.2 billion provision to Ukraine linked to roundwood export ban
Ukraine’s matter regarding the trade of unprocessed timber should be solved as quickly as possible because the ban on exports interferes with the second and third tranche of EUR 1.2 billion, representing the macro-financial assistance from the EU, as the Deputy Minister of Economic Development and Trade - Trade Representative of Ukraine Natalia Mykolska stated.
"The removal of this important impediment to trade is one of the necessary criteria for continuation of the implementation of the third EU macro-financial assistance programme in Ukraine. The second and third tranches total EUR 1.2 billion and foresee further liberalization of trade with the EU," said Mykolska.
Continue reading "EU's €1.2 billion provision to Ukraine linked to roundwood export ban"
EU’s €1.2 billion provision to Ukraine linked to roundwood export ban
Ukraine’s matter regarding the trade of unprocessed timber should be solved as quickly as possible because the ban on exports interferes with the second and third tranche of EUR 1.2 billion, representing the macro-financial assistance from the EU, as the Deputy Minister of Economic Development and Trade - Trade Representative of Ukraine Natalia Mykolska stated.
"The removal of this important impediment to trade is one of the necessary criteria for continuation of the implementation of the third EU macro-financial assistance programme in Ukraine. The second and third tranches total EUR 1.2 billion and foresee further liberalization of trade with the EU," said Mykolska.
Continue reading "EU’s €1.2 billion provision to Ukraine linked to roundwood export ban"
European Union and FAO unite to fight illegal logging
The European Union (EU) and FAO have agreed to step up joint efforts to support tropical timber producing countries in curbing illegal logging, improving forest governance and promoting the trade of legally sourced timber. Doing so is expected to not only reduce the environmental impacts of illegal logging and mitigate climate change but will also boost the incomes and food security of forest communities by improving access to domestic and international wood markets.
A $30 million funding agreement was formalized by Veronique Lorenzo of the European Commission Directorate-General for International Cooperation and Development, and René Castro Salazar, FAO Assistant Director-General for Forestry, to support the next phase of FAO's Forest Law Enforcement, Governance and Trade (FLEGT) Programme, set to run through 2020.
That sum includes approximately $18 million from the EU, $7.25 million from the United Kingdom and $5.3 million from the Government of Sweden.
Illegal logging and associated trade costs governments an estimated $10-15 billion per year in lost tax revenues. It also undermines people's livelihoods and robs them of income and food. And it is responsible for the degradation of large swathes of carbon-rich forests and vital wildlife habitats, contributing to climate change and biodiversity loss.
Focus on empowering smallholders
A key part of the new phase involves greater collaboration with private sector entities, big and small, in both producer and consumer countries, to address some of the bottlenecks to producing legal timber.
This will involve looking specifically at empowering small- and medium forest enterprises in Africa, Latin America, the Caribbean and Asia, which employ some 140 million people worldwide. The idea is to help them to "go legal", gain access to green markets and become active participants in the sustainable management of forest resources.
"Thanks to global initiatives like FLEGT, illegal timber production has declined by an estimated 22 percent since 2002," said Castro. "The new FLEGT phase offers an important opportunity for lesson sharing across sectors, as it has become increasingly clear that broad partnerships are and will be needed to achieve the global impact that is necessary to reduce forest loss, food vulnerability and mitigate climate change."
Lorenzo said: "New evidence confirms that FLEGT has led to improved forest governance in all targeted countries. FAO continues to make a significant contribution by providing technical assistance and resources to stakeholders. This new phase is expected to scale up this work in strategic countries, in particular by engaging the private sector."
"We've achieved a lot, but there is more work to be done. Building on the success of previous phases, FAO will help smallholder wood producers, who often have difficulties verifying compliance with legality standards, gain access to green markets and improve their livelihoods," said Julia Falconer, Senior Forestry Advisor at the Department for International Development of the United Kingdom (DFID).
Piloting new technologies to track timber
To date, the FAO FLEGT Programme has supported over 200 projects in some 40 tropical timber producing countries throughout Africa, Latin America, the Caribbean and Asia. Some of the most promising initiatives being piloted involve using new technologies to efficiently track the origin of wood.
In Colombia, for example, the programme is supporting the use of digital android applications to strengthen tracking and control mechanisms by environmental authorities and guide consumers in purchasing legal and sustainable timber.
Similarly, a logging vehicle tracking system is being piloted by a partner NGO in the Congo Basin countries -- including Cameroon, Côte d'Ivoire, the Democratic Republic of the Congo and the Republic of the Congo -- to intercept illegal timber at different stages in the forest supply chain, facilitating monitoring efforts by forestry authorities and improving accountability and traceability.
Technology is just one part of the solution. In Myanmar, for example the programme is supporting efforts towards legal community- and smallholder-timber production to boost smallholder timber revenues. In Honduras, resolving land ownership disputes is becoming a key thread of Programme support. In the Republic of the Congo, resources are being channeled to state and non-state actors to help forest enterprises communicate their legal credentials to the public.
Owing to the multiple contributions of forests to provide jobs and income, food and medicine, and critical environmental services, the world's new international development agenda includes their sustainable management as one of the 2030 Sustainable Development Goals.
The Quebec company Stella-Jones makes two acquisitions in U.S.
The North American manufacturer of pressure treated wood products, Stella-Jones has signed a definitive agreement to purchase the shares of 440 Investments, LLC, the parent company of Kisatchie Treating, LLC, Kisatchie Pole & Piling, LLC, Kisatchie Trucking, LLC and Kisatchie Midnight Express, LLC
Kisatchie produces treated poles, pilings and timbers, with two wood treating facilities in Noble and Pineville, Louisiana. Kisatchie’s consolidated sales for the year ended December 31, 2015 reached approximately US$51.8 million.
Stella-Jones has also signed a definitive agreement to purchase the shares of Lufkin Creosoting, a Texas company that specializes in the manufacture of posts and treated wood beams.
Lufkin Creosoting produces treated poles and timbers at its wood treating facility in Lufkin, Texas. Its consolidated sales for the year ended December 31, 2015 reached approximately US$34.2 million.
The definitive share purchase agreement provides for a purchase price of US$37.5 million which includes US$5.0 million of working capital and is subject to adjustments. The transaction is expected to close during the second quarter of 2016 and is subject to customary closing conditions.
Energy crops expected to contribute up to 35% of total biomass supply in USA by 2030
As IRENA (International Renewable Energy Agency) specified in their most recent report, the biomass and energy crops in the US are expected to increase their total share of primary energy. IRENA has made an assessment (Remap 2030) on how many countries can contribute to double the share of renewable energy in the global energy mix by 2030.
As main findings the executive summary report shows the following KEY achievements and results from the IRENA REmap 2030 assessment:
* The renewable energy share in the US energy mix was 7.5% in 2010 (the base year of REmap 2030 analysis). This included 2.5% renewable power, 1.6% liquid biofuels and the remaining, 3.4%, largely solid biomass used for heating in the manufacturing industry and buildings. Continue reading "Energy crops expected to contribute up to 35% of total biomass supply in USA by 2030"
Malaysia: Tropical timber exports reach 1 million m3
By December 2015, Malaysia has exported over 1 million m3 of certified tropical timber to 49 countries in the Asia Pacific, Middle East, Europe, South Africa, United States and Canada. Out of this total, 868,332 m3 (82.93%) were exported to Europe, while 5% of it went to Germany alone.
As Daily Express reported, the Malaysian Timber Certification Council (MTCC) Continue reading "Malaysia: Tropical timber exports reach 1 million m3"
430 exhibitors to showcase at this year's Xylexpo
Close to 30 thousand square meters, with 311 Italian companies covering 23 thousand and the remaining 7 thousand assigned to 122 international exhibitors who decided to attend Xylexpo 2016, the biennial international exhibition of the biennial international exhibition of woodworking technology and furniture industry components, celebrating its 25th edition next May 24 to 28 at the FieraMilano-Rho expo center. These figures will be further adjusted upwards, as more registrations are being finalized in these weeks.
“We are quite satisfied”, said Lorenzo Primultini, president of the exhibition and Acimall, the association of Italian manufacturers. “The event will have a strong innovation focus and 433 exhibitors registered so far perfectly know what they can expect during the days in Milan and what the demanding audience of our exhibition expects from them”.
“Xylexpo – Primultini continued – is becoming more and more practical and business-oriented, reflecting a market that is highly focused on any factor that can increase competitiveness. This is very clear to all the big groups that will be present this year, together with small and medium businesses that represent a big asset for our industry”.
Biesse, Cefla, Homag Group, Ima-Schelling, Scm Group are the brands under the spotlights at the upcoming edition, where – with an unprecedented result – halls 1 and 3, dedicated to panel finishing and secondary processing, are sold out; in hall 2 there are still a few square meters available, but the organizers are confident they will be assigned in the coming days.
“Considering the number of exhibitors and the 30 percent increase in visitor pre-registrations so far, we really believe we can expect a successful May”, commented Acimall’s director Dario Corbetta. “The Italian market is definitely showing encouraging signals, the lineup is complete, woodworking technology users can feel that the wind has changed, and they are seriously considering to renovate or expand their fleets. This is generating a virtuous circle that Xylexpo 2016 will reflect".
Online services
The organization machinery is running at full steam: on www.xylexpo.com everyone can pre-register for the event, in order to streamline access to the expo center. On the same website you will soon find the interactive hall plans, a new service that will be certainly appreciated, as it helps visitors optimize their time at the exhibition, adding to the existing Apple and Android apps that will be available in a few days.
On www.xylexpo.com you can also access the match making service, a platform for visitors to build their electronic agenda and fix dates with exhibitors; the latter, in their turn, can offer their availability to meet visitors interested in a specific technology or application.
An international platform
Promotion activity has secured the participation of several foreign delegations, hosted in a dedicated area in hall 3. A highlight will be the business mission of the Ministry of Industry and Trade of the Russian Federation, with the aim of developing contacts with Italian and international companies to create new opportunities in the woodworking industry.
A strong contribution to this result was given by the tight collaboration with the Italian Ministry of Economic Development, which included Xylexpo in the top-30 list of strategic exhibitions. Such recognition has developed into a joint action with Ice-Italian trade promotion agency, this year stronger and more effective than ever.
430 exhibitors to showcase at this year’s Xylexpo
Close to 30 thousand square meters, with 311 Italian companies covering 23 thousand and the remaining 7 thousand assigned to 122 international exhibitors who decided to attend Xylexpo 2016, the biennial international exhibition of the biennial international exhibition of woodworking technology and furniture industry components, celebrating its 25th edition next May 24 to 28 at the FieraMilano-Rho expo center. These figures will be further adjusted upwards, as more registrations are being finalized in these weeks.
“We are quite satisfied”, said Lorenzo Primultini, president of the exhibition and Acimall, the association of Italian manufacturers. “The event will have a strong innovation focus and 433 exhibitors registered so far perfectly know what they can expect during the days in Milan and what the demanding audience of our exhibition expects from them”.
“Xylexpo – Primultini continued – is becoming more and more practical and business-oriented, reflecting a market that is highly focused on any factor that can increase competitiveness. This is very clear to all the big groups that will be present this year, together with small and medium businesses that represent a big asset for our industry”.
Biesse, Cefla, Homag Group, Ima-Schelling, Scm Group are the brands under the spotlights at the upcoming edition, where – with an unprecedented result – halls 1 and 3, dedicated to panel finishing and secondary processing, are sold out; in hall 2 there are still a few square meters available, but the organizers are confident they will be assigned in the coming days.
“Considering the number of exhibitors and the 30 percent increase in visitor pre-registrations so far, we really believe we can expect a successful May”, commented Acimall’s director Dario Corbetta. “The Italian market is definitely showing encouraging signals, the lineup is complete, woodworking technology users can feel that the wind has changed, and they are seriously considering to renovate or expand their fleets. This is generating a virtuous circle that Xylexpo 2016 will reflect".
Online services
The organization machinery is running at full steam: on www.xylexpo.com everyone can pre-register for the event, in order to streamline access to the expo center. On the same website you will soon find the interactive hall plans, a new service that will be certainly appreciated, as it helps visitors optimize their time at the exhibition, adding to the existing Apple and Android apps that will be available in a few days.
On www.xylexpo.com you can also access the match making service, a platform for visitors to build their electronic agenda and fix dates with exhibitors; the latter, in their turn, can offer their availability to meet visitors interested in a specific technology or application.
An international platform
Promotion activity has secured the participation of several foreign delegations, hosted in a dedicated area in hall 3. A highlight will be the business mission of the Ministry of Industry and Trade of the Russian Federation, with the aim of developing contacts with Italian and international companies to create new opportunities in the woodworking industry.
A strong contribution to this result was given by the tight collaboration with the Italian Ministry of Economic Development, which included Xylexpo in the top-30 list of strategic exhibitions. Such recognition has developed into a joint action with Ice-Italian trade promotion agency, this year stronger and more effective than ever.
Finland: Sawn softwood production up 3.8% in the first quarter
The Finnish forest industry production of softwood sawn timber and pulp likewise increased in the first quarter, while paper production continued to contract. Softwood sawn timber production increased 3.8% to 2.7 million cubic metres.
There were 830,000 tonnes of paperboard produced in the early part of the year. Output was up 8.4% from January-March 2015.
Continue reading "Finland: Sawn softwood production up 3.8% in the first quarter"
Indonesia: SVLK implementation may boost timber exports to EU by 10%
Once with the full implementation of the timber legality verification system (SVLK), the Indonesian government seeks to increase the exports of timber products to the EU by 10%, as to reach US $1.1 billion in 2016, as The Jakarta Post reported.
According to Nurlaila Nur Muhammad, the Trade Ministry’s director of agriculture and forestry export products, once that the system is put into effect, it will be much easier to export the timber products to the EU. Continue reading "Indonesia: SVLK implementation may boost timber exports to EU by 10%"
10.2% turnover increase for the German furniture industry
The German furniture industry’s turnover reached a 10.2% increase in February 2016, compared to the same month of the previous year, reaching €1.535 billion. According to data provided by the Verband der Deutschen Möbelindustrie (VDM), the increase came due to the leap year that created an additional work day.
Continue reading "10.2% turnover increase for the German furniture industry"
Columbia Forest Products to acquire Ontario’s Nova Wood Lamination
Columbia Forest Products announced that they have purchased the shares of Nova Wood Lamination Inc from its founding owners, Frank and Donna Decicco.
“We are very happy to add the Nova Wood Lamination facility to the Columbia family of decorative hardwood veneer and plywood facilities,” stated Columbia’s Executive Vice President, Gary Gillespie.
Gilles Levesque, Columbia’s General Manager of Canadian Plywood Operations, added, “The Nova Wood plant’s flexible production capabilities and its proximity to attractive Canadian and U.S. markets make Nova Wood Lamination a great addition for Columbia’s customers, suppliers and shareholders.”
Columbia’s acquisition of Nova Wood Lamination comes on the heels of other recent investments in Ontario by the company. Last fall, they commissioned a new Meinan core peeling lathe at their Hearst, Ontario plywood plant, and just this month re-started their hardwood veneer peeling operation in Rutherglen, Ontario.
Established in 1957, Columbia Forest Products has provided fine decorative hardwood plywood panels to the woodworking industry for nearly 60 years. Columbia’s decorative veneers and panels are used in cabinetry, fine furniture, architectural millwork and commercial fixtures.
Russian softwood lumber exports reach peak during Q1/2016
The Russian softwood lumber sales to foreign markets have registered a 32% (m/m) growth during March 2016. This is equivalent for a 5.5% year-on-year growth, until reaching 2.2 million m3. Even if the total value reached $256 million (30% higher than February 2016), the decline was 7.8% in annual terms.
According to WhatWood, the softwood lumber sales from Russia to the European market summed up 342.000 m3, registering the highest amount in the last 6 years. Continue reading "Russian softwood lumber exports reach peak during Q1/2016"
Lumber Liquidators crashes
Losses worsened at Lumber Liquidators during the first three months of its fiscal year and sales declined for a fifth straight quarter as the flooring company spent heavily to put behind it damaging reports of potentially dangerous and illegal products from China.
Its stock fell almost 8 percent.
