Article archive

US lumber & panel prices at the end of February

Posted on by GWMI Admin

Framing lumber trading paused after a mostly busy first three weeks of February. Prices in key species still finished last week higher, but the overall pace of sales slowed. Producers cited mid-March order files as the key reason for the pause, and buyers acknowledged that they needed time to digest recent purchases and higher prices. Weather was also a factor, with warm conditions stoking demand in some markets and wintry or severe weather slowing sales in others. The Random Lengths Framing Lumber Composite Price edged up for a fourth straight week.

This Week
Feb 26		 Last Week
Feb 19		 Year Ago
2015
Random Lengths Framing Lumber Composite Price* $315 $314 $357
KD Western S-P-F #2&Btr 2x4 R/L Mill Price 271 267 313
KD Eastern S-P-F #1&2 2x4 R/L, delivered Great Lakes 364 360 418
Green Douglas Fir Std&Btr 2x4 R/L (Portland) 318 312 317
Southern Pine (Westside) #2 2x4 R/L 372 379 420
KD Coast Hem-Fir #2&Btr 2x4 R/L 310 303 330
Ponderosa Pine (Inland) #2&Btr 1x12 R/L 670 670 665
* Weighted average of 15 key items

Random Lengths Panel Market Report

Structural panel demand faded modestly. Strong OSB sales the previous two weeks dissipated to a more measured pace at the end of the month. Prices continued to post increases, but most gains were in single digits. Upward momentum ebbed late in the week. Southern Pine plywood buyers closely managed inventories, but replenishment purchases were steady enough to keep prices on a firm footing. Western Fir plywood sales were a grind, and prices of most items were flat to soft.

(f.o.b. mill prices) This Week
Feb 26		 Last Week
Feb 19		 Year Ago
2015
Random Lengths Structural Panel Composite Price* $348 $346 $381
Southern (west-east) 15/32-inch 3-ply rated sheathing plywood 368-395 365-393 440-490
Southern (west-east) 15/32-inch 4-ply rated sheathing plywood 370-398 370-393 445-500
Western 1/2-inch 4-ply rated sheathing plywood 330 330 413
North Central 7/16-inch Oriented Strand Board 227 223 195
*Weighted average of 11 key items

SOURCE: Random Lengths

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Current prices of teak logs, sawnwood and plywood in India

Posted on by GWMI Admin

Analysts report several price changes reflecting variation in the size of the logs shipped. Mexico has joined the ranks of plantation teak shippers to India. Recent weakness in the rupee exchange rate has raised the landed cost and manufacturers are attempting to pass on price increases.
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 370-556
Cameroon logs 406-165
Colombia logs 426-775
Congo logs 451-761
Costa Rica logs 320-780
Côte d'Ivoire logs 298-756
Ecuador squares 254-564
El-Salvador logs 381-732
Ghana logs 276-434
Guatemala logs 360-451
Guyana logs 300-450
Uganda teak sawn 680-900
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
Despite the otherwise gloomy prospects in the sawnwood market some price increases have been reported.

Sawnwood, (Ex-mill) (AD) Rs. per ft3
Merbau
 1950-2150
Balau
 1750-1850
Resak
 1200-1400
Kapur
 1750-1850
Kempas
 1200-1300
Red Meranti
 1200-1350
Radiata pine AD
 750-850
Whitewood
 675-800

Variations are based on quality, length and average girth of logs
Myanmar teak flitches resawn in India
There has been no change in pricing over the past two weeks. Imports of large sized flitches from Myanmar are helping sustain teak stocks.

Sawnwood (Ex-mill) Rs. per ft3
Myanmar Teak (AD)
Export Grade F.E.Q.
 8000-14000
Plantation Teak A grade
 5500-6500
Plantation Teak B grade
 4500-5000
Plantation Teak FAS grade
 3500-4000

Price variations depend mainly on length and cross section
Prices for imported sawnwood
The depreciation of rupee has resulted in changes in domestic prices.

Sawnwood, (Ex-warehouse) (KD) Rs per ft3
Beech 1250-1350
Sycamore 1500-1650
Red oak 1500-1650
White Oak 1900-2100
American Walnut 3500-3700
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.
Plywood market trends
The cost of imported plywood is rising as the rupee weakens but prices for locally manufactured plywood remained unchanged. Gurjan a face and back veneer is being replaced such that at present gurjan accounts for only 40% of total veneer production. Prices for WBP Marine grade plywood from domestic mills

Plywood, Rs per sq.ft
Ex-warehouse. (MR Quality)
4 mm 39.50
6 mm 52.50
9 mm 66.50
12 mm 82.00
15 mm 109.00
18 mm 114.50

 
Domestic ex-warehouse prices for locally manufactured MR plywood

Locally Manufactured
Plywood “Commercial
Grade”		 Rs per sq.ft
Rubberwood Hardwood
4mm Rs.20.00 Rs.29.60
6mm Rs.30.30 Rs.38.00
8mm Rs.38.20 Rs.46.00
12mm Rs.45.40 Rs.55.80
15mm Rs.55.80 Rs.68.00
19mm RS.64.60 Rs.76.30
5mm Flexible ply Rs.40.00

 
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Södra increases price for softwood pulp in Europe

Posted on by GWMI Admin

Following a period of downward price pressure last year, the softwood pulp market stabilized in early 2016 and the outlook is now improving. As a result, a number of global price initiatives have already been announced.
"We know from experience that the spring is typically characterized by stronger demand than the start of the year, and that this is also a time for maintenance stoppages in Europe. That's why we anticipate that the market will tighten even further", said Magnus Björkman, President of Södra Cell International.
In the expectation of a stronger global market and solid demand, Södra will increase its market price for NBSK deliveries in Europe to USD 810/tonne, effective from April 1st 2016.
 
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Turkey is now the largest MDF producer in the EU

Posted on by GWMI Admin

After Turkey strengthened its export markets in the last two decades, they have now become the largest medium-density fiberboard (MDF) producer in Europe. According to Şirzat Subaşı, Advanced Technology in Wood Industry (AGT) Sales and Marketing Group Head, Turkey has recorded an 82% growth in the amount of MDF produced, in parallel with the world production, which has grown 69% in the last 6 years, as Hurriyet Daily News reported.
Subaşı added that “we’re making regional optimization using dealer stores as our primary business partners when delivering our products to consumers,” referring to AGT, a company from Antalya, which produces wood material for exports, and has a 15% share in the Turkish fiberboard market.
AGT plans to extend its export market, which is now covering 60 countries, among which the US and several EU countries.

Orçun Kuyucuoğlu, the consulting services manager at Ernst & Young Turkey, said that “specifying and analyzing target markets to develop corporate roadmaps would be a giant step toward the AGT’s mid-term and longstanding success.”

Subaşı advised the companies that create wood material to be more careful about the quality for end users of wood products, rather than the price sensitivity of the materials. A sustainable wood supply method would balance the wood material production in Turkey, which is now importing raw wood materials from Russia, Ukraine, Cameroon, Bulgaria and Romania to make wood products for furniture and home decoration. He added that 27% of Turkey’s surface is forest, and 50% of it may be productive.
 
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US German Pellets subsidiaries filed for bankruptcy

Posted on by GWMI Admin

The US subsidiaries of German Pellets filed for bankruptcy on Thursday. After construction delays and cost overruns, the Louisiana Pellets Inc. and German Pellets Louisiana LLC cited chapter 11 protection in US Bankruptcy Court in Alexandria, La.
The company missed a bondholders’ payment this year, after Wismar already entered the insolvency process. On February 11th 2016, Wismar’s German Pellets GmbH announced that an administrator has been appointed to assess the company’s holdings and the insolvency proceeding would begin in May 2016 in Germany.
As Peter Leibold, chief executive of German Pellets Louisiana, explained, the plant in Urania, La., operated by Louisiana Pellets Inc., has been facing a lot of difficulties, as it’s still under construction and has faced a lot of delays and expenses. Even if the initial phase of the construction was completed at the end of 2015, the limited production proved to have deficiencies in the electrical system, thus requiring extra work and unexpected costs.
The Urania plant in Louisiana was financed with $390.2 million in bonds and the rates ranged from 7% to 11.5%. At the moment, it owes $340 million including unpaid interest. Even if the full production capacity would be reached in a few months, the second phase of the construction would be ready in over a year. The missing bondholders’ payment has put the plant on a $100 million hold, leaving it without money to maintain its operations.
Thus, Louisiana Pellets Inc. has asked for help from other US affiliates, requesting $300,000 in emergency bankruptcy financing, as to be able to pay the employees, the insurance premiums and still maintain its operations. An answer to their request is expected on Tuesday.
 
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Lumber Liquidators' sales drop after CDC announces cancer risk

Posted on by GWMI Admin

US regulators announced that some of Lumber Liquidators Holdings Inc. laminate flooring has a great risk of causing cancer. The US Centers for Disease Control and Prevention (CDC) had previously announced that the risk was lower as they made incorrect measurements, according to Bloomberg Business.
The retailer’s sales dropped a lot in the last six months, since CDC made the announcement. The earlier report released by the US regulators measured the ceiling heights wrong, thus lowering the airborne concentration, through which they established the estimated danger.
After Lumber Liquidators was almost recovering after a year of crisis, it dropped 20% to $11.40 at the close in New York, as Bloomberg Business reported. Also, after the March “60 minutes” show that proved the company’s flooring had dangerous levels of formaldehyde, the shares fell almost 70%
The CDC explained that there is a 6 to 30 cases of risk tumors, per 100.000 people. The previous estimation was a 2 to 9 cases. As a result, Lumber Liquidators have tried to improve their quality-assurance procedures, to stop the sale of Chinese laminate and also to offer free air tests.
The whole story started when the company’s laminate flooring proved to contain levels of formaldehyde that exceeded those allowed in California.
 
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Lumber Liquidators’ sales drop after CDC announces cancer risk

Posted on by GWMI Admin

US regulators announced that some of Lumber Liquidators Holdings Inc. laminate flooring has a great risk of causing cancer. The US Centers for Disease Control and Prevention (CDC) had previously announced that the risk was lower as they made incorrect measurements, according to Bloomberg Business.

The retailer’s sales dropped a lot in the last six months, since CDC made the announcement. The earlier report released by the US regulators measured the ceiling heights wrong, thus lowering the airborne concentration, through which they established the estimated danger.

After Lumber Liquidators was almost recovering after a year of crisis, it dropped 20% to $11.40 at the close in New York, as Bloomberg Business reported. Also, after the March “60 minutes” show that proved the company’s flooring had dangerous levels of formaldehyde, the shares fell almost 70%

The CDC explained that there is a 6 to 30 cases of risk tumors, per 100.000 people. The previous estimation was a 2 to 9 cases. As a result, Lumber Liquidators have tried to improve their quality-assurance procedures, to stop the sale of Chinese laminate and also to offer free air tests.

The whole story started when the company’s laminate flooring proved to contain levels of formaldehyde that exceeded those allowed in California.

 

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Central Africa: Minor sawnwood price movements

Posted on by GWMI Admin

For the first time this year minor sawnwood price movements have been reported in Central/West Africa, otherwise most markets are quiet and prices remain unchanged, ITTO reported.
Thankfully, business in Europe continues at levels normal for this time of year when the construction/building sectors are affected by winter weather. West and Central African producers anticipate a slow but upward trend in sales to markets in Europe throughout this year.

No interest in small diameter okoume logs

Buyers for the Chinese market are on the sidelines due to the holiday period but there have been reports of small purchases of selected species but no-one is interested in large volumes of okoume.
Sales of okoume logs are limited to high quality and larger diameter logs at low price. There is absolutely no interest on the part of buyers in small and lower quality okoume logs.
It is not clear when or even if there will be revival in China’s imports beyond the small volumes traded at present. There have been suggestions that the species mix for the Chinese market may be changing towards a different range of lower cost timbers.
Business in Middle East markets has, so far, not been affected by the declines in oil export prices which must be denting the reserves of oil exporters

Producers see growth potential in Mid-East markets

Purchases by buyers for the Middle East markets are of only moderate volumes as is usually the case. The sentiment amongst producers in Central and West Africa is that demand in the Middle East will remain stable with potential for growth as the year progresses, though prices in this market will be always under competitive pressure.

Falling timber exports affecting government revenues

Heavy seasonal rains are affecting production in the region especially in Gabon and Congo Brazzaville. Anecdotal evidence suggests both Gabon and Congo Brazzaville are feeling the effects on their economies of the lower level of timber exports which, in the past, generated substantial revenues from taxes and export levies.
Analysts point to a slowing in large infrastructure developments such as new roads and buildings as evidence of declining government revenues.

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 305 305 220
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 610
Scantlings 690
Strips
440
Khaya FAS GMS
450
FAS fixed
460
Maobi FAS GMS
610
Scantlings
630
Movingui FAS GMS
420

 
Source: ITTO
 
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Sonae reports turnover increase in 2015

Posted on by GWMI Admin

Consolidated turnover for Sonae Indústria´s continuing operations reached Euro 1,027 million in 2015, representing an increase of 1.3% year-over-year, on a comparable basis.

This top line performance was driven by improvements in the average selling prices that increased by 1.5% when compared to 2014, as the sales volumes were kept flat year-over-year, the company stated in a press release. According to Sonae, the main contribution to the positive performance of average selling prices came from the improvements witnessed in sales mix, with a growing share of value added products, with different contributions per geography, which more than compensated the decreases felt in OSB prices,
Sonae Indústria recurrent EBITDA for full year 2015 reached Euro 107 million, representing an increase of Euro 11 million when compared to 2014, with an implicit recurrent EBITDA margin of 10.4% (1 p.p. above the value registered in 2014).
Consolidated EBITDA for 2015 was Euro 92 million, above the 2014 value by 3% (+Euro 2.5 million). It should be highlighted that 2014 value was positively impacted by the receipt of an insurance settlement in the UK in the amount of Euro13.2 million. If this one-off effect is excluded, Sonae Indústria’s total EBITDA would have improved by Euro16 million, year-on-year, on a comparable basis.
Nevertheless, due to the improved operational performance of the continuing operations and the significant reduction of the negative contribution from the discontinued operations, the consolidated net losses of the group were reduced by circa 69% (-Euro 80 million), when compared to 2014.
Sonae Indústria is one of the largest wood-based panel producers in the world.
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Total stock volumes of roundwood decline in Sweden

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The total stocks of coniferous sawlogs, pulpwood and wood chips is estimated to amount 8.4 million m³ (cubic metres solid volume excluding bark) as of 31 December 2015. This is a decline by 5%, compared with the same time frame as last year, as the Swedish Forest Agency reported.
Stock volumes of coniferous sawlogs is estimated to amount 3.0 million m³. Compared with same time frame in 2014, this represents a 11% decrease.
The total stocks of pulpwood amounted to 4.6 million m³ as of 31 December 2015, which represents a 2% decline compared to the same time frame of 2014. As per assortment, pulpwood stocks was: 3.0 million m³ of mixed coniferous, 0.7 million m³ of spruce and 0.9 million m³ of broadleaved. Stock of spruce pulpwood increased by 30%.
The stock volumes of wood chips is estimated to amount 0.8 million m³. This is a decline by 18% compared to 31 December 2014.
 
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“Made in China 2025” strategy presented at the Beijing Woodworking Fair

Posted on by GWMI Admin

The Chinese Government is taking steps to achieve the strategy of “Made-In-China 2025″ in which “smart and green production” is the key element. The demand of intelligent furniture and woodworking equipment has therefore greatly increased. Facing the fierce competition, sluggish economy and rising production cost, wood machinery enterprises are urged to upgrade and transform via enhancing production effectiveness.

To address the market needs, The 16th International Exhibition on Woodworking Machinery & Furniture Manufacturing Equipment and The International Exhibition on Woodworking Machinery Supplies & Accessories (hereinafter as “Beijing Woodwork Fair 2016″) will focus on intelligent and green manufacturing solutions. It is also set to assist woodworking and furniture enterprises in achieving energy-efficient, fully digitalized and sustainable production.

Three leading enterprises in woodworking industry will participate in Beijing Woodwork Fair 2016 and they have shared with us about the challenges brought by “Made in China 2025″ and smart production solutions suggested for the woodworking and furniture manufacturing industry.

Sandar: Tapping into the era of customization and digitization

Customized furniture currently accounts for 10% of China’s furniture market. There is great potential for this segment as the demand for personalized furniture is increasing.

“Several leading enterprises started developing and producing CNC woodworking machinery and some of their quality products have already gained positive feedback from the markets and became competitive with overseas brands,” said Ken Liu, Director of Guangdong Sandar CNC Machinery Co., Ltd.

Sandar1Sandar’s products are famous for their high efficiency, good quality and outstanding outlook. All product technologies are patented. The core software and hardware technologies are developed in-house. At WMF 2016, Sandar will showcase the latest CNC cutting machines, automated edge banding machines, CNC drilling machines for panel furniture and so forth. Through Sandar’s on-site demonstration, clients can also have a better understanding on the maximized production result when CNC machines are connected with smart production & design system.

Biesse China: We think globally, act locally

Intelligent manufacturing has become a key focus. Biesse wants to be a leader in China and plans to hire experts to build stable sales and service network. The company has opened a head office andBiesse manufacturing plant in Dongguan, and has offices in Shanghai and Beijing. It also plans to open branches in other parts of China.

“We are bringing expertise from overseas and new technology that we have successfully sold in America. This will enable us to be competitive in China and elsewhere, and provide our potential and existing customers new solutions,” said Piergiorgio Franca, CEO of Biesse China.

At WMF 2016, Biesse will showcase the CNC machine model “Rover Gold” that has a very flexible design and highly applicable to different production lines. Another highlighted exhibit is the sanding machine tailored for solid wood furniture.

Homag China: In pursuit of energy efficiency

Homag-Venture240M_24311In 2015, Homag China Golden Field Ltd. was recognized as one of the “top 10 energy-saving enterprises of the wooden window industry in China”. Quality windows are a vital component in green buildings. Homag China organized many field trips to research institutes and business units in Europe for its clients. These trips aimed at helping clients understand the latest types of solid wood windows, and technology for its production. Homag China also introduced various kinds of energy-saving solid wood windows for different parts of China according to the respective city’s unique weather conditions.

At WMF 2016, Homag China will showcase software and equipment in alignment with the “Made-In-China 2025″ theme. The programme will include a demonstration on ‘Woodshop’ software, which involves 3D simulations and automatically calculates the cost of designing a wardrobe. There will also be a demonstration of a complete wardrobe production cycle from design to order placement, production and packaging using software such as WCC, CutRite and I-Share.

 

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Biewer Lumber to have $80 million state-of-the-art mill build by BID Group

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Biewer Lumber chose BID Group to build a state-of-the-art turnkey mill in Newton, Mississippi. The mill production is planned to start in the 2Q of 2017, as construction will begin in the 2Q of 2016. With the Newton mill, is the first time for Biewer to build in the South of America.
BID Group has been chosen to build the mill due to its facilities located all over North America. The new sawmill will have state-of-the-art technologies designed by BID Group especially for it and it will cost approximately $80 million.
Also, the Newton mill will feature a Comact optimized log bucking system, together with a Comact saw line with profiling systems, and a fully-automated mill outfeed. Moreover, the all-new Miller speed planner will be part of the planer mill, together with a Comact GradExpertTM and a fully-automated mill outfeed, that is specialized in cut-in-two handling.
Duo Deltech dual path kilns will equip the mill with continuous kiln technology, which will be utilized by the lumber drying.
 
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Raute reports good financial results in 2015

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Raute's 4Q 2015 net sales amounted to a new record at Euro 39.5 million, compared to Euro 34 million in 4Q 2014. Net sales increased 26% from the 3Q in line with the order book’s timing, as the company said in a press release .
Operating profit in the 4Q was Euro 2.8 million positive and accounted for 7% of net sales. The operating profit included a total of Euro 0.6 million in costs related to the development of new business for Raute.
FY 2015 order intake amounted to Euro 145 million compared to Euro 112 million in 2014. Of the new orders, 67% came from Europe, 15% from North America,10% from Russia, 5% from Asia-Pacific and 3% from South America. The strong fluctuations in the distribution of new orders between the various market areas are typical for project-focused business.
The Group’s net sales in 2015 amounted to Euro 127.3 million, compared to Euro 94 million in 2014. Net sales grew by 35% on 2014. The growth in net sales resulted from a higher initial order book than in the comparison year, a large volume of order intake and the timing of the order book.
Raute’s operating profit for 2015 was Euro 8.1 million positive and accounted for 6% of net sales.
Raute is a technology and service company that operates worldwide. Raute’s customers are companies operating in the wood products industry that manufacture veneer, plywood and LVL (Laminated Veneer Lumber).

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Alberta lumber producers hope for SLA renewal to avoid trade war

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The new softwood lumber agreement between Canada and the US is expected by the lumber producers in Alberta, as there is hope that this agreement might prevent a trade war. Even if the SLA expired in October 2015, the two countries have signed a standstill according to which, the US can’t apply any new tariffs on Canada’s lumber exports and can’t launch a trade complaint for a full year after the expiry date, according to Global News Canada.

Neil Miller, president of Alberta Spruce Industries, stated that “the U.S. side is going to shoot for the moon, you know, retroactive duties, huge percentage duties. There’s nothing good that’s going to come out of a situation where a duty is imposed on a produced we produce here. We should be concerned.”

In the present status of the SLA, the companies in Alberta are free of any US tariffs when they export lumber to the United States. Still, if the market prices decline a lot, they would have to pay the taxes according to the province. Now, about $1-billion worth of exports go the US every year and from all Alberta’s production, half of it is used in exports and a quarter of this goes the US, as Global News Canada reported.

“Any kind of tariff, or duty or limitation on our trade flows has a negative impact on our industry, on revenues to the province and jobs to the citizens of this province,” said Paul Whittaker, president and CEO of the Alberta Forest Products Association.

The issue was also brought up at the meeting from Ottawa last week, between the US President Barack Obama and the Trade Minister of Canada, Chrystia Freeland, where talks about a future agreement were held, as to resolve any disputes.
 
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Infographic: Rising log prices in Sweden

Posted on by GWMI Admin

The third quarter of 2015 brought rising sawlog prices in Sweden, an evolution present in the other two quarters of the year. Pine and spruce logs are both more expensive as compared to the same quarter of 2014: pine by 2.13 EUR per cubic meter, while spruce by 5.68 EUR/m3 (check infographic below).
Pulpwood prices show some mixed developments. Pine has lost some value both as compared to the second quarter as well as compared to the same quarter of 2014. On contrast, spruce has becom slightly more expensive.

Infographic
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Estonia: Log prices significantly lower in December 2015

Posted on by GWMI Admin

In December 2015, roundwood prices in Estonia are way below the level of last year. The price of sawlogs (pine, spruce, birch) are on average -7.5% lower as compared to December 2014. For small diameter sawlog(under 18 cm diameter) the price drop stands at around 11%,
Among pulpwood assortments, pine has registered the highest price crash (-13.82%), while spruce and birch declined by -8.32% and -9.79% respectively. Aspen pulpwood defied the overall downward price trend, and recorded a price increase of almost 8%.

Roadside prices of roundwood in state forests of Estonia 12/2014–12/2015; EUR/m³ u.b.
December 2014 November 2015 December 2015 Change Dec.2014/Dec. 2015 in %
Logs
Pine 69.91 64.19 64.16 -8.18%
Spruce 67.16 60.93 60.43 -10.02%
Birch 60.28 57.22 57.61 -4.42%
Birch veneer 102.86 95.25 95.85 -6.81%
Aspen 33.65 31.65 32 -4.90%
Small logs (d<18 cm)
Pine 58.78 51.75 52.18 -11.22%
Spruce 52.54 45.41 46.32 -11.83%
Pulpwood
Pine 26.55 22.81 22.88 -13.82%
Spruce 25.48 23.74 23.36 -8,32%
Birch 28.69 25.76 25.88 -9,79%
Aspen 17.98 18.5 19.34 +7,56

 
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Japan's Sumitomo Forestry bought out American house builder

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Sumitomo Forestry Co., Ltd. (Tokyo) announced that it bought 60% of share of DRB Enterprises, which owns Dan Ryan Builders (DRB) group in Maryland. DRB is a major house builder on the East Coast and South of the United States. Purchase amount is about 10 billion yen (US$ 90 million).
New housing starts in Japan will continue declining by dropping birth rate and aging of the population so Sumitomo Forestry has been developing housing business in foreign countries and by capital participation to the DRB, it intends to be one of top builders in the States.
DRB is middle class builder to sell units built for sale in six states of Maryland, Pennsylvania, Virginia and others with annual sales of 1,248 units or 295 million dollars in 2014 and is ranked as 35th in the States. Employees are 299.
Sumitomo Forestry has been developing housing business through Henry U.S.A. group, Gehan Homes group and Bloomfield Homes group mainly in the West and the South of the States. Now with DRB is under wing, the East and the South are covered.
Sumitomo Forestry plans to have about 5,000 units of house sales in the States then with house sales in Australia, total overseas houses would be about 8,000 units.
 
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Japan’s Sumitomo Forestry bought out American house builder

Posted on by GWMI Admin

Sumitomo Forestry Co., Ltd. (Tokyo) announced that it bought 60% of share of DRB Enterprises, which owns Dan Ryan Builders (DRB) group in Maryland. DRB is a major house builder on the East Coast and South of the United States. Purchase amount is about 10 billion yen (US$ 90 million).

New housing starts in Japan will continue declining by dropping birth rate and aging of the population so Sumitomo Forestry has been developing housing business in foreign countries and by capital participation to the DRB, it intends to be one of top builders in the States.

DRB is middle class builder to sell units built for sale in six states of Maryland, Pennsylvania, Virginia and others with annual sales of 1,248 units or 295 million dollars in 2014 and is ranked as 35th in the States. Employees are 299.

Sumitomo Forestry has been developing housing business through Henry U.S.A. group, Gehan Homes group and Bloomfield Homes group mainly in the West and the South of the States. Now with DRB is under wing, the East and the South are covered.

Sumitomo Forestry plans to have about 5,000 units of house sales in the States then with house sales in Australia, total overseas houses would be about 8,000 units.

 

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Maibec Inc. buys Cedar Balmoral Ltd

Posted on by GWMI Admin

Maibec Inc. has acquired Cedar Balmoral Ltd., a manufacturer of Eastern white cedar shingles located in Balmoral, New Brunswick.
Despite being the largest manufacturer of Eastern white cedar shingles in North America, Maibec says the growing demand for its natural and stained cedar shingles has been outpacing its production capacity in recent years.

"A growing number of homeowners and builders, particularly those in the U.S., are turning to Maibec Eastern white cedar shingles," said François Tardif, President of Maibec. "This acquisition will allow us to keep pace with this increased demand and to develop new markets."

In the coming months, Maibec plans to upgrade manufacturing practices in the Balmoral mill to ensure it is operating at peak capacity and producing quality shingles worthy of the Maibec name. This new production will gradually be added to that of Maibec's Eastern white cedar shingle plants in St. Pamphile and St. Theophile, Quebec.
About Maibec Inc.
Maibec Inc. is a Quebec-based family business that has been active in the wood processing sector since 1946 and has been manufacturing shingles since 1964. In addition to being a manufacturer of Eastern white cedar shingles in North America, it also manufacturesof genuine wood siding and cedar mulch. Maibec also operates two lumber sawmills in St. Pamphile, Quebec and in Masardis, Maine. Nearly 850 employees work at its Canadian and U.S. mills.
 
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RusForest increases sawnwood production in Q4/2015

Posted on by GWMI Admin

RusForest AB announced preliminary Q4 2015 and sales results for its Magistralny and Ust-Ilimsk units. The Swedish forestry company with operations in Russia increased its sawmilling and harvesting operations in the mentioned period and finished the year “on a strong note in terms of production”, according to the company’s management comments.
The new pellet mill in Magistralny and the new harvesting operations in Ust-Ilimsk started production in the Q4 2015 and are working on improving overall production. Still, the sawnwood markets, except for Japan, have declined in the last years and have represented a big challenge for the mentioned period of 2015.
In Q4 2015, RusForest harvested 117,101 m3 of sawlogs, compared with 105,038 m3 in Q4 2014 (+11%), which included 14,420 m3 of recently developed own harvesting in Ust-Ilimsk. At the same time, RusForest's subcontractors harvested 216,829 m3 of sawlogs in Ust-Ilimsk forest lease areas, compared with 106,379 m3 in Q4 2014 (+104%).
For the mentioned period, the company produced 22,488 m3 of sawnwood, compared with 21,368 m3 in Q4 2014 (+5%). The Magistraly sawmill has in 2015 been successfully running around its practical maximum annual capacity. Also, RusForest started production of pellets in Magistralny and managed to produce a total of 1,847 tonnes in Q4 2015.
In the Q4 2015, the Swedish company sold 22,589 m3 of sawnwood from Magistralny compared with 20,355 m3in Q4 2014 (+11%). Also, they sold 22,995 m3 of sawlogs compared with 19,670 m3 in Q4 2014 (+17%). Sales volumes of sawlogs increased due to better demand on the Chinese market in the quarter. A total of 1,772 tonnes of wood pellets were sold from Magistralny in Q4 2015.
RusForest made about USD 2.1 million of capital investments into the Ust-Ilimsk harvesting operations, now totaling approximately USD 4.0 million for 2015.
 
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