The US Congress has recently voted for a new bill meant to organize research for better performance in advancing tall wood building construction in the U.S.
The "Timber Inovation Act" would, thus, authorize the Tall Wood Building Prize Competition through the U.S. Department of Agriculture (USDA) annually for the next five years. Also, it would create federal grants to support state, local, Continue reading "New bill to accelerate use of timber in building construction in U.S."
Article archive
India to invest $6.2 billion to boost its forest cover
India’s Narendra Modi government wants to invest US$6.2 billion in increasing the forest cover of the country up to 33%, from the present 21.34%. As the Union Environment Minister Prakash Javadekar stated, the Compensatory Afforestation Fund (CAF) bill was passed this week in the Lok Sabha.
"I am sure that this fund will give a tremendous push in our afforestation movement. Our forest cover will dramatically increase and it will result in achieving our target 33 per cent of tree cover and most importantly 2.5 billion tonne of carbon sink as we have indicated in our INDCs," Javadekar added.
The bill was passed by lawmakers in India’s lower house and the money come from different fees paid by private companies and entities to the Indian government as to be allowed to set up projects on the forest land.
This money has been lying unspent for nearly 4 years now. The use of the accumulated unspent amounts will be made with the help of the ad hoc Compensatory Afforestation Fund Management and Planning Authority (CAMPA), presently reaching $6.2 billion.
As Javadekar also said, the funds meant for afforestation have been deposited in banks for the last 12 years. With the help of the CAF, the afforestation will be given a better evaluation and monitoring by using technology, as reported by Business Standard.
West Fraser's WestPine MDF mill to reopen this fall
West Fraser announced a plan to resume manufacturing MDF at WestPine by October 2016. WestPine experienced a fire within the mill’s equipment in March. After the incident, Ted Seraphim, President and CEO of West Fraser, told employees that the mill would not restart until it was reengineered to fully address the conditions that led to the March fire.
At a staff meeting this week, Mr. Seraphim announced that the construction of a new system with advanced safeguards would proceed and be completed this fall.
“After a thorough investigation we are confident that we can reengineer the equipment and process flow at WestPine to ensure a safer working environment for everyone at the facility. We will also be making modifications at our Ranger Board plant in Alberta as a result,” said Mr. Seraphim.
In addition to the two MDF mills (Ranger Board & WestPine), West Fraser Mills Ltd. also operates three plywood mills, an LVL mill and a veneer mill which produces veneer for its Edmonton plywood facility. West Fraser also owns 28 lumber mills and five pulp and paper mills. 2015 sales were $4.1 billion.
West Fraser’s WestPine MDF mill to reopen this fall
West Fraser announced a plan to resume manufacturing MDF at WestPine by October 2016. WestPine experienced a fire within the mill’s equipment in March. After the incident, Ted Seraphim, President and CEO of West Fraser, told employees that the mill would not restart until it was reengineered to fully address the conditions that led to the March fire.
At a staff meeting this week, Mr. Seraphim announced that the construction of a new system with advanced safeguards would proceed and be completed this fall.
“After a thorough investigation we are confident that we can reengineer the equipment and process flow at WestPine to ensure a safer working environment for everyone at the facility. We will also be making modifications at our Ranger Board plant in Alberta as a result,” said Mr. Seraphim.
In addition to the two MDF mills (Ranger Board & WestPine), West Fraser Mills Ltd. also operates three plywood mills, an LVL mill and a veneer mill which produces veneer for its Edmonton plywood facility. West Fraser also owns 28 lumber mills and five pulp and paper mills. 2015 sales were $4.1 billion.
Declining EU wood flooring imports from China
While consumption and sales of wood flooring manufactured in Europe improved in 2015, imports came under pressure last year. The 5% rise in imports recorded in 2014, after a lengthy period of weakness, proved to be short-lived.
The EU imported 28.82 million m2 of wood flooring last year, 4.6% less than 2014 and only just exceeding the recessionary low in 2013. These Continue reading "Declining EU wood flooring imports from China"
Hekotek delivers wood pellet plant in Latvia
AS Hekotek and 4 Energia signed an agreement for complex pellet plant equipment delivery to Latvia (a town of Brocheni – ca. 100 km westwards from Riga) – designed annual capacity being up to 120 thousand tons of wood pellets.
Continue reading "Hekotek delivers wood pellet plant in Latvia"
Myanmar might impose log harvesting ban
The Director General of Myanmar's Forestry Department has submitted a proposal to the new government advising a halt to log harvesting. While there is no official announcement as yet a senior official of the Myanmar Timber Enterprise (MTE) has been quoted as saying that his organisation intends to end its logging operations from the end of this fiscal year.
The plan submitted by the Forestry Department proposes the ban in 68 Districts. Prior to 2014 the annual log harvest was over 1 million tons but in 2014 this was reduced to around 60,000 tons of teak and 670,000 tons of other hardwood in.
Continue reading "Myanmar might impose log harvesting ban"
US lumber prices keep growing at the end of April
Last week's ales of framing lumber in US varied among species and producing regions. The cash market in Western S-P-F got a shot in the arm from strength in futures, and transportation hang-ups related to a rail trestle in Alberta that was destroyed by fire. Eastern S-P-F producers also caught the wave of increased activity. Elsewhere, trading was mixed, with the pace slowing in Southern Pine and trading in western species described as a grind. All told, the Random Lengths Framing Lumber Composite Price rose $4.
| Week Apr 29 |
Previous Week Apr 22 |
Year Ago 2015 |
|
| Random Lengths Framing Lumber Composite Price* | $350 | $346 | $327 |
| KD Western S-P-F #2&Btr 2x4 R/L Mill Price | 298 | 284 | 249 |
| KD Eastern S-P-F #1&2 2x4 R/L, delivered Great Lakes | 385 | 370 | 350 |
| Green Douglas Fir Std&Btr 2x4 R/L (Portland) | 327 | 320 | 290 |
| Southern Pine (Westside) #2 2x4 R/L | 427 | 421 | 397 |
| KD Coast Hem-Fir #2&Btr 2x4 R/L | 380 | 380 | 300 |
| Ponderosa Pine (Inland) #2&Btr 1x12 R/L | 695 | 690 | 670 |
| * Weighted average of 15 key items | |||
Random Lengths Panel Market Report
Structural panel sales gained momentum. Extended order files and steady demand kept prices of OSB on a firm-to-higher track. Activity was best in western markets, where reports of coming downtime and recent production issues in Western Canada kept buyers replenishing. After a slow start to the week, Southern Pine plywood sales showed more life Wednesday and Thursday, and the market finished with a better tone. A late-week pickup in activity firmed western Fir sheathing prices, with a few producers lifting quotes by around $5 Friday.
| (f.o.b. mill prices) | Week Apr 29 |
Previous Week Apr 22 |
Year Ago 2015 |
| Random Lengths Structural Panel Composite Price* | $358 | $355 | $360 |
| Southern (west-east) 15/32-inch 3-ply rated sheathing plywood | 355-375 | 353-370 | 418-460 |
| Southern (west-east) 15/32-inch 4-ply rated sheathing plywood | 358-377 | 353-372 | 420-465 |
| Western 1/2-inch 4-ply rated sheathing plywood | 343 | 345 | 392 |
| North Central 7/16-inch Oriented Strand Board | 250 | 247 | 175 |
| *Weighted average of 11 key items | |||
Source: Random Lengths
Norbord's earnings boom in Q1 on higher OSB prices and deliveries
Norbord Inc. reported adjusted EBITDA of $61 million for the first quarter of 2016 versus $16 million in the first quarter of 2015 and $57 million in the fourth quarter of 2015. Norbord says that the year-over-year improvement is primarily due to higher North American oriented strand board (OSB) prices and shipment volumes as well as lower resin prices and the weaker Canadian dollar.
Norbord's North American operations generated adjusted EBITDA of $53 million in the quarter compared to $11 million in the same quarter last year and $51 million in the prior quarter.
European operations delivered adjusted EBITDA of $10 million, $3 million higher than the same quarter last year and in line with the prior quarter. Continue reading "Norbord's earnings boom in Q1 on higher OSB prices and deliveries"
Norbord’s earnings boom in Q1 on higher OSB prices and deliveries
Norbord Inc. reported adjusted EBITDA of $61 million for the first quarter of 2016 versus $16 million in the first quarter of 2015 and $57 million in the fourth quarter of 2015. Norbord says that the year-over-year improvement is primarily due to higher North American oriented strand board (OSB) prices and shipment volumes as well as lower resin prices and the weaker Canadian dollar.
Norbord's North American operations generated adjusted EBITDA of $53 million in the quarter compared to $11 million in the same quarter last year and $51 million in the prior quarter.
European operations delivered adjusted EBITDA of $10 million, $3 million higher than the same quarter last year and in line with the prior quarter. Continue reading "Norbord’s earnings boom in Q1 on higher OSB prices and deliveries"
Sweden: Vida adds 48,000 m3 of drying capacity at spruce sawmill with Valutec's continuous kiln
With a new continuous kiln from Valutec, Vida will increases its drying capacity by 48,000 m3 in Vislanda, Sweden. Continue reading "Sweden: Vida adds 48,000 m3 of drying capacity at spruce sawmill with Valutec's continuous kiln"
Sweden: Vida adds 48,000 m3 of drying capacity at spruce sawmill with Valutec’s continuous kiln
With a new continuous kiln from Valutec, Vida will increases its drying capacity by 48,000 m3 in Vislanda, Sweden. Continue reading "Sweden: Vida adds 48,000 m3 of drying capacity at spruce sawmill with Valutec’s continuous kiln"
Interfor to demolish Simpson Lumber mill due to challenging market
Interfor plans to demolish the Simpson Lumber mill in Tacoma, Washington, US. The mill, which was built in 2000, could be replaced by a 1.2 million m2 of office, warehouse and industrial use space, split up between two buildings
Continue reading "Interfor to demolish Simpson Lumber mill due to challenging market"
German Pellets split by several companies
The insolvency proceedings for German Pellets GmbH started on the 1st of May in Hamburg, with insolvency administrator Bettina Schmudde ahead of the issue. The bankrupt company was divided to small investors as to guarantee its continuation.
Thus, the German Pellets plant in Wismar was bought by Metropolitan Equity Partners, LLC, New York (MEP) and operates now as a newly founded company under the name Wismar Pellets GmbH.
Continue reading "German Pellets split by several companies"
Weyerhaeuser sells pulp business to International Paper for US$2.2 billion
Weyerhaeuser Company announced an agreement to sell its Cellulose Fibers pulp mills to International Paper for $2.2 billion in cash. Weyerhaeuser expects to use a substantial portion of the estimated $1.6 billion after-tax proceeds for repayment of term loans issued in conjunction with the company's previously announced $2.5 billion share repurchase program.
The transaction includes five pulp mills located in Columbus, Miss.; Flint River, Ga.; New Bern, N.C., Port Wentworth, Ga. and Grande Prairie, Alberta, with a combined total capacity of nearly 1.9 million metric tons. The sale also includes two modified fiber mills in Columbus, Miss. and Gdansk, Poland.
Continue reading "Weyerhaeuser sells pulp business to International Paper for US$2.2 billion"
Finland: Forest industry to boost use of roundwood
This year and next year roundwood trade and removals in Finland are growing towards a new level needed to satisfy the use of roundwood shifted by new forest industry investments. However, the full amount will not still be fully achieved in the forecast period. Trade and removal volumes have been quite large already in recent years so that in the coming years millennium record levels will be approached.
Forest industry investments elevate use of roundwood
The positive tone in the Finnish forest sector has been going on for a few years now and will be even intensified during this forecast period due to actualized and subsequent industry investments. Continue reading "Finland: Forest industry to boost use of roundwood"
New record-high in 2015 for North American wood pellet exports
North American overseas wood pellet exports increased for the third consecutive quarter in the 4Q/15, rising seven percent from the previous quarter to just over 1.7 million tons. The total for the year was 6.1 million tons, which was two percent higher than in 2014 and almost four times as much as in 201.
In the 4Q/15, total Canadian pellet overseas exports increased by 17% from the previous quarter with shipments going up to both Europe and Asia. On a regional basis, BC exports continued to shift slightly towards Asia, with a slight reduction in Continue reading "New record-high in 2015 for North American wood pellet exports"
European wood flooring consumption starting to recover
After a steep fall of more than 6% in 2014, the European Federation of the Parquet Industry (FEP) reports that European wood flooring consumption increased both in 2015 and in the first few months of 2016.
In 2015, FEP observed “a stabilisation in parquet sales across Europe, with an upward tendency during the last months”. And in early 2016, FEP report market recovery across much of Europe.
Continue reading "European wood flooring consumption starting to recover"
UPM sells Schwedt mill to LEIPA for €70 million
UPM has signed an agreement to sell its Schwedt newsprint mill site (Germany) and relevant assets to LEIPA Georg Leinfelder GmbH for the aim of a conversion into liner production. The entire personnel of Schwedt mill will transfer to LEIPA as old employees. The transaction price is EUR 70 million. The transaction is subject to customary third party approvals.
As part of the transaction, the parties have agreed to enter into a contract manufacturing agreement for newsprint for a transition period which would end latest at the end of 2017. The mill's capacity is 280,000 tonnes of newsprint annually.
LEIPA will convert the mill into liner production. The planned production capacity would be approximately 450,000 tonnes of liner annually.
"With this transaction UPM and LEIPA will have an improved opportunity to develop their businesses to meet the market needs. LEIPA is a solid and successful player in the liner business," says Winfried Schaur, Executive Vice President, UPM Paper ENA.
"The negotiations with LEIPA have proceeded well and we believe that the transaction will bring benefits to the employees in the form of future employment at a converted site," says Schaur.
UPM continues newsprint production at its Chapelle, Kaipola, Hürth, Schongau, Shotton and Steyrermühl mills.
The Finnish pulp and paper maker announced at the end of 2014 a plan to close 800,000 tonnes of publication paper capacity in Europe as it aims to cut 550 jobs and save 150 million euros annually. The world's biggest producer of graphic papers, such as magazine paper and newsprint, said the industry in Europe continues to suffer from overcapacity as consumers shift from print to digital devices.
Back in June 2015, UPM permanently closes paper machine No.3 at UPM Chapelle Darblay. UPM Chapelle Darblay has continued paper production on the remaining paper machine No.6 producing standard newsprint and improved grades (MFS) with an annual capacity of 250,000 tonnes.
Central/West Africa: Timber demand in China and EU moves ahead
Selling from Central/West Africa to the Chinese market has steadily firmed, especially for the higher quality species and grades. Until recently Asian producers were the main beneficiaries of firmer demand in the Chinese market but now African suppliers are experiencing a similar trend.
European demand is strengthening slowly and prices are very firm. In EU markets buyers are looking for prompt and timely shipment which is favouring West and Central African producers because of the shorter distances and their access to regular liner services.
Cameroon said to be considering total log export ban
Heavy rains in Gabon and in Northern Cameroon are hampering forest operations and reports say that in Cameroon sawn sapele is in tight supply due to low production.
In other news, it is not yet clear how far Cameroon’s new restrictions on log exports are working. Log exports are restricted to secondary species only but it is rumoured that the government is considering a complete halt in log exports. Reports from local analysts say a decision may be made later in the year.
There have been rumours in Cameroon of bubinga/kevazingo logs being discovered in containers destined for export and it appears the authorities are stepping up inspections of export shipments.
Sawn bubinga stocks may be licensed for export
As mentioned in an earlier report, Gabon is considering proposing bubinga/kevazingo be placed on the CITES list but it is not clear if other countries exporting this timber will support the listing.
The authorities in Gabon have recently been assessing the level of bubinga/kevazingo stocks held by local companies and producers anticipate that licenses may be issued allowing some export of current stocks.
Congo Brazzaville production to remains modest at best
Reports on Congo Brazzaville are of relatively low production of okoume logs and sawnwood and a shortage of high grade okoume peeler logs.
A new and rather large concession in the Northern region of Congo Brazzaville has been allocated but one long term producer in the country with a large concession has decided to sell the company. It is the assessment of analysts that in, the short term, Congo Brazzaville production levels will remain modest at best.
Competition between African and SE Asian timber heats up in South Africa
In South Africa stocks of imported mearnti picked up prior to the Chinese New Year celebrations in SE. Asia and importers priced up stocks at the latest rand exchange rate.
Sales of US hardwoods are weak but SE Asian meranti exporters have now dropped prices slightly which has helped with their competition with West African hardwoods.
Buyers in South Africa are now waiting to see if West African mills react to the lower meranti prices.
Plywood buyers seeking high quality panels
West and central African producers of plywood report firm demand especially for higher grades, a trend previously reported mainly for Asian plywood.
It appears that international markets are now much more demanding and require high quality veneers on both faces as well as in the plywood core.
Log Export Prices
| West Africa logs, FOB | € per m³ | ||
| Asian market |
LM
|
B
|
BC/C
|
| Acajou/ Khaya/N’Gollon |
230
|
230
|
160 |
| Ayous/Obéché/Wawa |
260
|
260
|
180
|
| Azobe & Ekki |
230
|
230
|
160
|
| Belli |
250
|
250
|
–
|
| Bibolo/Dibétou |
150
|
145
|
|
| Iroko | 330 |
290
|
260
|
| Okoume (60% CI, 40% CE, 20% CS) (China only) | 200 | 200 | 160 |
| Moabi | 335 | 305 | 225 |
| Movingui | 210 |
210
|
160
|
| Niove |
160
|
160
|
–
|
| Okan |
250
|
250 |
–
|
| Padouk |
310
|
285 |
225
|
| Sapele | 315 | 305 | 220 |
| Sipo/Utile |
345
|
340 |
265
|
| Tali | 320 | 320 |
–
|
Sawnwood Export Prices
| West Africa sawnwood, FOB |
€ per m³
|
|
| Ayous | FAS GMS | 410 |
| Bilinga | FAS GMS | 500 |
| Okoumé | FAS GMS |
350
|
| Merchantable | 225 | |
| Std/Btr GMS | 270 | |
| Sipo | FAS GMS |
610
|
| FAS fixed sizes | 610 | |
| FAS scantlings | 640 | |
| Padouk | FAS GMS | 930 |
| FAS scantlings | 1020 | |
| Strips | 680 | |
| Sapele | FAS Spanish sizes | 610 |
| FAS scantlings | 620 | |
| Iroko | FAS GMS | 630 |
| Scantlings | 700 | |
| Strips |
440
|
|
| Khaya | FAS GMS |
450
|
| FAS fixed |
460
|
|
| Maobi | FAS GMS |
610
|
| Scantlings |
630
|
|
| Movingui | FAS GMS |
420
|
