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EU’s illegal timber policy works, says FERN

NGO Fern released a report on the benefits of bringing many tropical forested countries into the European Commission’s FLEGT Act, as the EU is currently developing a review of their flagship forest policy.

The independent review of the Forest Law Enforcement, Governance and Trade (FLEGT) Action Plan, released by the EC today, highlights the scheme’s successes as well as areas ripe for improvement, calling it “fully relevant… innovative, comprehensive and future proof”, while stating that it needs to “address new challenges in particular with regard to deforestation and conversion timber”.

As shown in Fern’s report, all the countries that have signed trade deals - so-called Voluntary Partnership Agreements (VPAs) - with the European Union under FLEGT, have shown clear improvements in the way their forests are owned and managed.

“Forest communities in some of the most deprived countries on earth, including Liberia and the Central African Republic, are seeing financial and other benefits from their forests, often for the first time. FLEGT is the most innovative international attempt so far to protect tropical forests and stop illegal logging, and this review should be a catalyst for strengthening it, ” said Lindsay Duffield, a Fern campaign co-ordinator and author of today’s report “Do FLEGT VPAs improve governance?”

 

Stora Enso inaugurates Varkaus mill; LVL production to start in June

Stora Enso has successfully converted a fine paper machine at Varkaus Mill to produce virgin-fibre-based containerboard. Stora Enso invested EUR 110 million in the conversion work, which took place in 2015. Kraftliner production began in October 2015 and full production is expected in early 2017. The capacity of the Varkaus Mill will be about 390 000 tonnes of light-weight kraftliner per year.
Moreover, Stora Enso has built a new production line in Varkaus Mill that will make wooden building elements, laminated veneer lumber (LVL). The investment of EUR 43 million will further enhance Stora Enso’s position as a global provider of high quality engineered wooden elements. The production is scheduled to begin in June 2016, and the estimated yearly capacity will be around 100 000m3. Continue reading "Stora Enso inaugurates Varkaus mill; LVL production to start in June"

U.S. lumber prices rise at the beginning of May

Price trends in U.S. framing lumber were mixed last week, but the tone of the market was more upbeat in the second half of the week. The pace slowed in Southern Pine, as a waiting game developed between buyers and sellers. In contrast, prices advanced in Canadian S-P-F, although the bulk of those gains came early on momentum from the previous week’s action. In the West, green Douglas Fir was cited as the most active species; customers in California stepped up purchases, while the Pacific Northwest truck market was steady. Continue reading "U.S. lumber prices rise at the beginning of May"

Laminates dominate European flooring market

While the market for real wood flooring recovered some lost ground in 2015, data published by the European Producers of Laminate Flooring (EPLF) association highlight the scale of the challenge from laminate flooring.
Members of the EPLF association sold 452 million m2 of laminate flooring last year, around 333 million m2 of which was in Europe, over four times the volume of real wood flooring consumption in the region.
Overall worldwide sales of EPLF members declined 3% in 2015. However the decline was almost all in Turkey due to one Turkish company leaving EPLF and anti-dumping proceedings by the Turkish Ministry of Econom Continue reading "Laminates dominate European flooring market"

China: House prices and the challenging market

The National Bureau of Statistics in China has recently released information about the prices in March for residential buildings, based on its regular survey across 70 medium and large-sized cities.
The data shows that in the major cities prices surged as much as 60% during the first 3 months of this year. In sharp contrast, prices in the so-called lower-tier cities continue to fall. Year on year prices for newly constructed residential buildings in China decreased in 29 cities, went up in 40 cities and remained unchanged in 1 city. Continue reading "China: House prices and the challenging market"

Forecast: Japanese lumber demand from Europe and N. America to fall this year

The Japan Forestry Agency members met to discuss about the wood demand forecast for the first three quarters of 2016. They assume that the consumption tax increase would begin in 2017 and that the logs, plywood and laminated lumber imports will increase, compared to 2015. Yet, the lumber imports may decrease in the Q2 and Q3 of 2016.
Compared to the forecast made last December, the North American logs, the European lumber, the radiata pine logs and the lumber coming from New Zealand and Chile, along with the imported plywood, may decrease in the Q1 of 2016.
Continue reading "Forecast: Japanese lumber demand from Europe and N. America to fall this year"

EOS, EPF and CEI-Bois meeting at the European Parliament

The European Organisation of the Sawmill Industry (EOS), the European Panel Federation (EPF) and the European Confederation of Woodworking Industries (CEI-Bois), organised the 3rd Club du Bois meeting under the chairwomanship of Mrs Maria Noichl, MEP, on the 20th April at the European Parliament in Brussels.
According to EOS report, the following members of the EU Parliament attended the event:

  • Mrs Maria Noichl, DE – Chairwoman
  • Mr Paul Brannen, UK
  • Mr Brando Benifei, IT
  • MEP Nathalie Griesbeck, FR
  • MEP Barbara Kappel, AT
  • Mrs Sirpa Pietikainen, FI, represented by Ossi Lång
  • MEP Ricardo Serrão Santos, PT, represented by Ana de Sousa
  • MEP Davor Stier, HR
  • MEP Henna Virkkunen, FI, represented by Marika Mäkinen

Continue reading "EOS, EPF and CEI-Bois meeting at the European Parliament"

RusForest produces more sawnwood in Q1

RusForest AB reported their Q1/2016 preliminary production and sales for its Magistralny and Ust-Ilimsk units.
For the mentioned period, the sawnwood production in Magistralny exceeded 23,000 m3 for the first time in Q1/2016. Both the new pellet mill in Magistralny and the new harvesting operations in Ust-Ilimsk performed well in Q1 2016, according to company’s management comments.
The Central Asian and Northern African markets remained difficult Q1 2016, however, the company managed to redirect more low quality product sales the Japanese market instead. The average sawnwood price realised (price 'on wagon') in Q1 2016 was largely unchanged compared with Q1 2015. Continue reading "RusForest produces more sawnwood in Q1"

Hopes in Canada for a new Softwood Lumber Agreement with US

There are hopes for a new Softwood Lumber Agreement in Canada. BC's Premier, Christy Clark, tried to gather support for it while participating at the Western Premiers’ Conference in Vancouver. She stated that blocking the trade wasn’t an option for closing a new deal.
“People are talking about building walls. Great American presidents never make their country or the world great because they were talking about building walls — they talked about taking down walls. That’s what trade is all about. It’s taking down walls around the world and making sure we can all enrich the citizens we represent by making sure trade is free between us,” Clark said.
Canadian lumber producers support a new SLA Continue reading "Hopes in Canada for a new Softwood Lumber Agreement with US"

Weyerhaeuser achieves higher sales in the Wood Products segment

In the first quarter of 2016, sales for Weyerhaeuser's Wood Products segment (softwood lumber, engineered wood products, oriented strand board, plywood, medium density fiberboard and building materials distribution) totaled $1,001 million (Q4/2015: $943 million).
Operating rates increased and unit manufacturing costs improved across most product lines in the quarter. Higher sales realizations for lumber were partially offset by slightly lower sales realizations for oriented strand board, says Weyerhaeuser.
Sales for the Timberlands segment came in at $609 million in the first quarter, while sales for the Cellulose Fibers segment came in at $430 million.
Overall, Weyerhaeuser's quarterly net income jumped to $70 million on net sales of $1.8 billion. This compares with net earnings of $90 million on net sales of $1.7 billion for the same period of last year.

"I am extremely proud of the work of our employees in the first quarter, as we closed the Plum Creek merger, delivered solid operating performance across each of our businesses, and completed about 35 percent of our $2.5 billion share repurchase authorization," said Doyle R. Simons, president and CEO.

Weyerhaeuser merged with Plum Creek on February 19, 2016. Also, on May 2, 2016, Weyerhaeuser announced an agreement to sell its Cellulose Fibers pulp mills to International Paper for $2.2 billion in cash.
For the next quarter, Weyerhaeuser expects significantly higher earnings and Adjusted EBITDA from the Wood Products segment in the second quarter primarily due to higher sales realizations for lumber and oriented strand board.
In the Timberlands segment, Weyerhaeuser anticipates comparable earnings and higher Adjusted EBITDA from the Timberlands segment in the second quarter. Higher fee harvest volumes from a full quarter of Plum Creek operations will be offset by seasonally higher Southern silviculture costs, higher Western logging expenses and slightly lower average realizations for Western and Southern logs, primarily due to mix.

Brazil: March wood-based products exports dissappoint

March 2016 exports of Brazil's wood-based products (except pulp and paper) declined 15% in value compared to March 2015, from US$282.3 million to US$239.6 million.
The value of March 2016 Brazilian pine sawnwood exports increased a massive 30% year on year from US$25.4 million toUS$33.1 million. There was a corresponding increase in the volume of exports (108,300 cu.m to 171,900 cu.m) however, average export prices were down in March.
Brazil's tropical sawnwood exports increased 16% in volume, from 31,100 cu.m in March 2015 to 36,100 cu.m in March this year but there was only a 1.2% increase in export earnings (US$16.5 million to US$16.7 million).
March 2016 pine plywood exports from Brazil fell 22% year on year from US$46.8 million to US$36.5 million but, at the same time, the volume of exports increased 12%, from 127,400 cu.m to 142,600 cu.m.
Brazil’s March tropical plywood exports increased 19% in volume, from 9,500 cu.m in March 2015 to 11,300 cu.m in March this year but export earnings fell 4.3%.
To wrap up the depressing story on March exports, the value of wooden furniture exports dropped 18.5% from US$46 million in March last year to US$37.5 million in March this year.

Germany accused of restricting trade in building products

The German Institute for Building Technology (DIBt) is considering introduction of special rules for building products that go well beyond the CE mark requirements for compliance with the European Construction Products Regulation and which would effectively “seal off the German construction products market from the EU single market”.
According to the EPLF (Association of European Producers of Laminate Flooring), the approach now being considered may be in breach of a decision taken by the European Court of Justice in October 2014. This concluded that Germany’s national requirements for building products created unnecessary barriers to free trade in the European free market and must be phased out.
At the time of the Court’s decision “the only building products that could be used in Germany were those bearing an Ü mark complying with the DIBt’s own specifications, which were independent from European harmonisation”, according to EPLF. Continue reading "Germany accused of restricting trade in building products"

China: Latest prices for imported sawn timber

This index contains latest updated prices of logs and lumbers from the two major timber distribution markets in China: Shanghai Furen Timber Market and Guangzhou Yuzhu Timber Market
Price information in Shanghai Furen Timber Market
Exchange rate:1Euro=7.12 CNY
Data collecting date: 2 March,2016

                   
Standard name Local name Specification Grade Origin March 2016 price range (Euro/m3)  March 2016 price range (RMB/m3)  Against March 2015
Min Max Min Max Trend
Okume Okume   A(KD) Africa 461.96 570.65 3400 4200
Ebiara Ebiara   A(KD) 951.09 1154.89 7000 8500
Sapeli Sapeli   A(KD) 652.17 883.15 4800 6500
Zingana Zingana   A(KD) 747.28 1154.89 5500 8500
Bubinga Bubinga   A(High mountains) 1902.17 2173.91 14000 16000
Bubinga Bubinga   A(Zambia) 1222.83 1358.70 9000 10000
African Mahogany African Mahogany   A 611.41 1019.02 4500 7500
Makore Makore   A 1019.02 1290.76 7500 9500
Ayous Wawa Wawa   FAS 489.13 584.24 3600 4300
  Ayous   FAS 543.48 611.41 4000 4500
Beli Beli   A(KD) 543.48 720.11 4000 5300
Oak Red oak 2" FAS N.America
 
1059.78 1195.65 7800 8800
1" FAS 733.70 923.91 5400 6800
2" 1 com 679.35 883.15 5000 6500
1" 1 com 543.48 665.76 4000 4900
White oak 2" FAS 1331.52 1630.43 9800 12000
1" FAS 951.09 1195.65 7000 8800
2" 1 com 923.91 1086.96 6800 8000
1" 1 com 611.41 815.22 4500 6000
White Ash White Ash 2" FAS 951.09 1114.13 7000 8200
1" FAS 815.22 951.09 6000 7000
2" 1 com 747.28 828.80 5500 6100
1" 1 com 638.59 692.93 4700 5100
Hard Maple Hard maple 2" FAS 951.09 1154.89 7000 8500
1" FAS 923.91 1059.78 6800 7800
Soft Maple Soft Maple 1" 1 com 815.22 883.15 6000 6500
Cherry Cherry 2" FAS 1059.78 1290.76 7800 9500
1" FAS 883.15 1086.96 6500 8000
Black Walnut Black Walnut 2" FAS 1970.11 2309.78 14500 17000
1" FAS 1494.57 1793.48 11000 13200
Red Alder Red Alder   JB 326.09 434.78 2400 3200 NA
  CUS 529.89 584.24 3900 4300
  SUP 652.17 706.52 4800 5200
Yellow Poplar Yellow Poplar 1" FAS 543.48 584.24 4000 4300
2" FAS 570.65 652.17 4200 4800
Yellow Meranti Yellow Meranti   A Southeast Asia 489.13 529.89 3600 3900
Red Meranti Red Meranti   A 516.30 557.07 3800 4100
Champaka Golden teak   Assorted Yunnan/Mynmar 951.09 1154.89 7000 8500
Merbau Merbau 2" Assorted Indonesia 951.09 1290.76 7000 9500
Beech Beech   AA Europe 557.07 638.59 4100 4700
  heartwood 475.54 543.48 3500 4000
Ash Ash   A Russia 706.52 883.15 5200 6500
Elmwood Elmwood   A 611.41 815.22 4500 6000
Myanmar Teak Wooden door timber   Myanmar 4279.89 4891.30 31500 36000
Decorative wood moulding timber   2445.65 2581.52 18000 19000
staircase timber   2418.48 2690.22 17800 19800
Kitchen cabinet timber   1834.24 2173.91 13500 16000
Outdoor furniture timber   1562.50 1766.30 11500 13000

 
Price information in Guangdong Yuzhu Timber Market 
Exchange rate:1Euro=7.12 CNY
Data collecting date: 2 March,2016

Imported sawn timber              
  Species Grades March 2016 price range (Euro/m3)  March 2016 price range (RMB/m3)  Against March 2015
Origin Min Max Min Max Trend
North America Cherry FAS-2" 1264.04 1544.94 9000 11000
FAS-1" 1193.82 1404.49 8500 10000
White Ash A 814.61 983.15 5800 7000
Black Walnut FAS-2" 2106.74 2528.09 15000 18000
FAS-1" 1685.39 2036.52 12000 14500
AB(1"-2") 983.15 1123.60 7000 8000
Hard Maple FAS 1264.04 1404.49 9000 10000
Soft Maple FAS 1123.60 1193.82 8000 8500
White Oak FAS 1053.37 1825.84 7500 13000
Red Oak FAS 842.70 1123.60 6000 8000
SPF B 280.90 294.94 2000 2100
Pine Finland A 365.17 407.30 2600 2900
Africa Makore A (imported with original packing) 983.15 7000
Zingana A 1334.27 1755.62 9500 12500
Awora A 814.61 912.92 5800 6500
Mezali (big) A 1685.39 2106.74 12000 15000
Keruing (Africa) A 632.02 800.56 4500 5700
Sapelli A(imported with original packing) 983.15 1053.37 7000 7500
Okume A 603.93 660.11 4300 4700
Ebiara A 912.92 969.10 6500 6900
Bubinga A 2317.42 2528.09 16500 18000
Acajou A (imported with original packing) 983.15 1053.37 7000 7500
Adouk d'afric A 800.56 842.70 5700 6000
Samba A 674.16 744.38 4800 5300
Europe European Maple A 1264.04 1334.27 9000 9500
Beech Super class 730.34 5200
Southeast Asia Nyatoh No knot 589.89 617.98 4200 4400
Pontianak wood Assorted 1334.27 1474.72 9500 10500
Merbau Super class 1193.82 1264.04 8500 9000
Lauan Super class 603.93 632.02 4300 4500
Camphorwood Super class 702.25 842.70 5000 6000
Camphorwood A 632.02 702.25 4500 5000
  Ramin No knot 842.70 926.97 6000 6600
Yunnan/Myanmar Golden Teak Super class 842.70 912.92 6000 6500
Red Cherry Super class 814.61 842.70 5800 6000
Toon Super class 561.80 603.93 4000 4300
Teak Super class 1966.29 2808.99 14000 20000
Keruing Super class 617.98 646.07 4400 4600

 

North America: Lumber prices grow on rising US housing starts

Mixed prices and demand for commodities, as well as currency volatility continues to affect the performance of the global forest, paper and packaging industry. However, the building product sector fundamentals remain optimistic, with steadily improving US housing starts up 6% in the fourth quarter of 2015 compared to the annualized starts in December 2014.
"What we saw in 2015 is the markets starting to stabilize. If we look ahead, the US housing market continues to improve, which has resulted in stronger lumber prices in the first quarter of 2016," said Kevin Bromley, Partner and PwC Canadian Forest, Paper and Packaging Leader. Continue reading "North America: Lumber prices grow on rising US housing starts"

Canada: Forestry industry commits to strongly reduce emissions by 2030

Canada’s forest products industry is trying to help the country cut its emissions of greenhouse gases by 30 million tonnes each year, by 2030. This would represent 13% more of the Canadian’s government emissions target.
Improved forest practices, such as letting the slash from downed trees rot and emit methane or using their slash rather than burning it, would make for nearly half the planned reductions. The rest would be made by improved use of carbon-sequestering wood products and the improved efficiency of mill operations.
Canada committed to this plan as part of the climate negotiations of the United Nations, which took place in Paris. The country promised to cut its emissions by 30% below the levels recorded in 2005, by 2030. This reduction would amount to 225 million tonnes per year.
The carbon measures would make for 13% of the 2030 promise, as the forestry industry association stated.

“We’re the first industry to come forward with a comprehensive plan and it’s a plan that we’re going to be reporting on every three years,” said Derek Nighbor, the new CEO of the Forest Products Association of Canada.

Also, the forestry association works on a pan-Canadian climate plan due to start next fall, together with all four federal-provincial policy working groups.  They were given six months to study the policy options for the plan, such as climate mitigation and adaptation, carbon pricing and clean technology innovation.
The forestry association’s “30 by 30 climate change challenge” makes intense lobbying for seeking government financial support for clean tech research and development and forest products procurement as part of infrastructure spending.
In the last 5 years, there have been $1.5 billion invested in clean tech innovation and the emissions from the existing mills have been reduced by two thirds since 1990. Apparently, using wood waste for new laminate products and biofuels could reduce carbon emissions, as Bob Larocque, the forest association’s environment and labour market policy director, stated. He added that also by planting faster-growing trees, the carbon could be easily absorbed in the atmosphere.
Moreover, Canada will introduce the taller wood structure buildings. An 18-story residence at the University of British Columbia in Vancouver and a 13-story building in Quebec City are already planned to begin construction.
 

Swedish sawmilling group Karl Hedin expands drying capacity at its Toftan sawmill in Estonia

Estonian AS Toftan, a subsidiary of the Swedish sawmilling group Karl Hedin AB, has ordered six Drive-through Chamber kilns type HCHD from Heinola Sawmill Machinery Inc. with annual capacity of ca. 130,000 m3 when drying 25 mm spruce to 14 % final moisture content.
The drying kilns can be used for drying of pine and spruce timber with thicknesses of  25 – 75 mm from sawn green timber to the final moisture of 8 – 18 %.  Continue reading "Swedish sawmilling group Karl Hedin expands drying capacity at its Toftan sawmill in Estonia"

Metsä Wood sawing operations profits weakened in Q1 due to lower delivery prices

Metsä Wood’s sales decreased at EUR 208.7 million during the Q1/2016 (January-March), compared to the EUR 209.4 million during the same period in 2015. The operating result excluding non-recurring items was EUR 5.8 million, compared to the EUR 7.9 million during Q1/2015.
Metsä Wood’s delivery volumes of spruce and pine sawn timber increased markedly from the corresponding period in the previous year. The deliveries of both timber grades to North Africa increased, and the deliveries of spruce sawn timber Continue reading "Metsä Wood sawing operations profits weakened in Q1 due to lower delivery prices"

Fire at Norbord's Alberta OSB mill; production stopped

Norbord Inc. reported that it has experienced a fire at its OSB mill in High Level, Alberta. In the afternoon of May 4th, a fire broke out in the mill yard which, as a result of the hot, dry, windy weather conditions in northern Alberta, quickly spread to the log storage area outside the plant. As a precaution, Norbord immediately suspended production at the mill.

Fire crews, Continue reading "Fire at Norbord's Alberta OSB mill; production stopped"

Fire at Norbord’s Alberta OSB mill; production stopped

Norbord Inc. reported that it has experienced a fire at its OSB mill in High Level, Alberta. In the afternoon of May 4th, a fire broke out in the mill yard which, as a result of the hot, dry, windy weather conditions in northern Alberta, quickly spread to the log storage area outside the plant. As a precaution, Norbord immediately suspended production at the mill.

Fire crews, Continue reading "Fire at Norbord’s Alberta OSB mill; production stopped"

Japan: High increase of biomass fuel supply

A sharp increase of the number of wood biomass power generation plants in Japan resulted in the expansion of the fuel supply provided by large trading Japanese companies.
The number of wood biomass power generation plants increased once the feed-in tariff (FIT) system got into force in July 2012. Japan has diversified its power mix since the suspension of the country's nuclear generation following the Fukushima disaster in 2011. And it has set ambitious emissions reduction targets. Under the FIT scheme, generators receive ¥17-32/kWh (14¢-27¢/kWh) depending on the wood source they use.
Thus, many Japanese companies, which had their own power generation plants or invested in biomass power plants, now have made progress in the procurement of biomass.
Woody biomass which is used by coal burning power plants as to reduce carbon dioxide emission, represents a substituting businesses. It can supplement the declining business of the Japanese building materials industry, considering a possible decrease of housing starts in the future.

Japanese timber companies boost biomass procurement

Sumitomo Forestry’s fuel supply in 2015, domestic wood chip and imported Palm kernel shells (PKS), was 1.2 million cubic meters, 5.3% more than 2014. With increasing number of biomass power generation plants, the supply of PKS sharply increased, reaching double of 2014’s supply. Continue reading "Japan: High increase of biomass fuel supply"

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