Article archive

Timber and wood-based panel imports boom in UK

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UK’s demand for imported timber and wood-based panel imports jumped 15% to 9.66 million m3 in 2014, according to the UK Timber Trade Federation (TTF) Statistical Review 2015.

Led by the recovery in the construction sector, this stronger demand raised the share of imported consumption to 60% in 2014, the first time such a level was achieved since the 2008 recession, says TTF.
Softwood imports

According to TTF, British softwood imports rose 17% to 5.93 million m3, driven by Sweden (+13%); Latvia (+21%); Finland (+15%); the Republic of Ireland (+9%); Germany (+31%); and Russia (+23%). Together these top six exporters accounted for around 92% of the UK’s softwood imports.

The volume of softwood plywood from Brazil increased 10%, raising its market share to nearly 50% and cementing the South American country’s position as the leading softwood plywood supplier to the UK. Volume from Chile increased by around 60%, claiming 7% of the market share in 2014.
Hardwood imports
Britain's hardwood imports increased 22% to 90,000m3 in 2014. The USA was leading supplier of hardwoods to the UK, achieving a 15% growth in 2014. Shipments from Cameroon, the second largest exporting country, were down by 2% in 2014. France achieved a 12% growth, while imports from Italy fell by about 4%, says TTF.
The highest percentage increases in volumes came from Estonia and the Republic of Ireland. UK's imports from Estonia increased nearly 50% while the Republic of Ireland more than doubled shipments to the UK in 2014 – albeit from a relatively low base.
As in 2013, UK's hardwood plywood imports grew only very slightly, less than one half of one percent. At less than half the volume of hardwood plywood, softwood plywood imports in 2014 were higher by nearly 5%.
According to TTF, hardwood plywood exporting countries experienced mixed fortune in 2014. Of the leading countries, only China and Russia exported more volume to the UK: a 4% and 5% increase respectively. In contrast, volume from Malaysia was sharply lower, down by 12% and also from Finland, down by 17%.
Wood-based panel imports
British panel products imports rose 10%, with particleboard and OSB imports the fastest growing panel products rising by around 24%.
France supplier the UK with around 40% more particleboard than in 2013, but good growth was also achieved by Portugal, Belgium and Spain. Whilst the Republic of Ireland maintains a dominant position in the supply of OSB imports to the UK, strong growth was achieved in 2014 by Latvia and Lithuania.
MDF imports were 16% higher in 2014, with all the leading countries of supply increasing volume shipped to the UK. The Republic of Ireland exported the greatest volume, holding the position as the UK’s leading trading partner in MDF. Imports of MDF from Ireland increased in 2014 by around 22%.
Good growth was also achieved by the other leading countries: Belgium, Germany, Spain and Poland.
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US wood products manufacturers file biomass litigation

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President and CEO of the American Wood Council (AWC), Robert Glowinski, together with President and CEO of American Forest & Paper Association,  Donna Harman, have requested the U.S. Environmental Protection Agency’s (EPA) to recognize the advantages of using biomass as a fuel source within its Clean Power Plan (CPP) federal plan and model carbon trading rules.

“The greenhouse gas reduction benefits of using biomass manufacturing residuals for energy by the wood products industry are equivalent to removing the emissions of approximately 4.6 million cars from the road each year,” Glowinski said.

He added that the final Federal Plan should include carbon neutral biomass as a compliance option, as to make sure that EPA could consider biomass energy capable to reduce greenhouse gas reduction. In addition, EPA also has to recognize the carbon neutrality of biomass energy in their regulations.

“EPA’s federal plan and model rules should provide for least-costly implementation possible to ratepayers and the economy, including recognizing the climate benefits of biomass energy. EPA needs to provide more certainty to biomass as a fuel. For example, the agency should list pre-approved qualified biomass fuels so that states know which options are on the table for CPP compliance,” Harman said.

She also stated that the industry depends on forest biomass and manufacturing residuals as to generate nearly two-thirds of the energy they need to function. Inefficiencies and unnecessary waste may be generated by the failure to list these materials as proper sources of energy, Harman added.
About AWC
The American Wood Council (AWC) is the voice of North American wood products manufacturing, representing over 75 percent of an industry that provides approximately 400,000 men and women in the United States with family-wage jobs. 
About AF&PA
The American Forest & Paper Association (AF&PA) serves to advance a sustainable U.S. pulp, paper, packaging, and wood products manufacturing industry through fact-based public policy and marketplace advocacy.
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AEG closes two $50 million hardwood contracts with Yildiz Entegre

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Active Energy Group (AEG)  WoodFiber division signed two new supply contracts for hardwood fibre products with Yildiz Entegre on the 15th of January 2016, delivering to the Turkish MDF manufacturer 300 kt of hardwood wood fibre product and up 200kt of softwood wood fibre in 2016. As AEG expects other contracts with Turkish MDF manufactures to be secured by February, these two contracts might bring the company up to $50 million in 2016.
Yildiz Entegre, located in Kocaeli (Turkey) will also make an investment into MDF/HDF production facilities in Romania and Russia. The company is among the most important producers of wooden boards in the world. Its production capacity reaches 8,500 m3 per day.
One of the largest production locations in the world, Kocaeli MDF/HDF production plant generates an annual capacity of about 1.5 million m³. Annually, Yildiz Entegre produces around 2 million m³ of MDF/HDF and 900,000 m³ of particleboard.
AEG’s trading divisions operate under their own different identities since December 2015. Thus, AEG WoodFibre is focused on processed wood fibre for medium-density fibreboard (MDF) manufacturing. The company is an important supplier of industrial wood chip and timber, Biomass for Energy (BFE) fuel products, and forestry asset development services.
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Homag launches new CNC and sanding technology

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The new Homag CNC machine concept is based on compact technology and almost automatic 360° handling. The Venture 115 can be accessed from all sides, thanks to the new safety Technology, as Homag describes its product.

The Venture 115 five-axis machine is just one of nine possible configurations in this series. There are also three-axis, four-axis, and five-axis entry-level solutions available for horizontal CNC processing. The machine can be commissioned within a day, requires up to 15% less space for installation and offers accurate performance level.

The new BMG 312/V combines both five-axis technology and edge banding in one machine.

The new SWT 200

Accorging to Homag, the new SWT 200 series requires less space, shorter set-up times, and is more user-friendly. This design prioritises efficient use of surfaces in the workshop. The machine is faster and safer to configure, says Homag. Belts can be changed and attached and the grain calibrated in just a few steps. The measurement of workpiece thickness is also automated. There are two additional unit slots for post-processing.

HPP 130 compact saw

The new HPP 130 makes it easier to cut precisely, Homag says. The compact saw is equipped with everything a user needs for cutting single panels. This includes a saw blade projection of 60mm, a cutting length of 3200 mm, and the CADmatic 4 PRACTIVE machine control unit. The HPP 130 costs little more than a well-equipped circular saw while providing a much more precise and efficient cutting process.

Source: Homag

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EU reviews VPA progress on legal timber imports with Liberia

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Representatives of Liberia and the EU have met to review progress towards implementation of their Voluntary Partnership Agreement (VPA), which aims to ensure Liberia exports only legal timber products to the EU. The Liberia-EU VPA Joint Implementation Committee (JIC) met for the 3rd time on 20-22 January in Monrovia. The JIC is the body established to oversee the implementation of the agreement.
The Voluntary Partnership Agreement (VPA) is under debate between Liberia and the EU. This agreement’s goal is to guarantee that Liberia exports only legal timber products to the EU, according to Front Page Africa (FPA). The meeting took place in Monrovia on 20-22 of January and the Liberia-EU VPA Joint Implementation Committee (JIC) met for the third time as to take better notice on the implementation of the agreement.
Sister Mary Laurene Browne, Chair of the Board of Liberia’s Forest Development Authority (FDA) and Co-Chair of the JIC stated that she was optimistic by the progress made in the implementation of this agreement since their last meeting.

“We are making up for momentum lost during the Ebola crisis. This would not have been possible without the strong support and commitment from the Government of Liberia and forest-sector stakeholders to the implementation of this agreement. Together we are working to create a system to ensure the legality of timber produced in Liberia. In doing so, we are setting an example for other sectors in the sustainable management of Liberia's natural resources,” Browne added.
Tiina Intelmann, European Union Ambassador to Liberia, said that “the forestry sector is of enormous importance for Liberia.”

Only last year, the forestry sector brought approximately US$8 million in tax revenue, creating jobs and opportunities for the economy.

“The VPA is about the European Union and Liberia engaging on equal terms to promote mutual interests and transparency," Intelmann added.
JIC discussed about the assurance system of the progress Liberia makes on timber legality, especially with the new Liberia Verification Department and software called LiberTrace, that will be useful to store data used to track timber as to verify its legality.  Also, JIC debated about the government ministers and agencies, alongside with the non-governmental stakeholders, the improvement of the regulatory framework and the priorities of the agreement for 2016.
Harrison Karnwea, Managing Director of FDA, reported that “the forest sector is arguably the most open of all of Liberia's government ministries, agencies and commissions.”

He added that they have a multi-stakeholder body which includes government representatives, as the people who depend on forests know about the latest changes.
EU and Liberia started the VPA between 2009 and 2011. The EU ratified the VPA in 2012 and Liberia ratified it in 2013. The commitments made in the agreement are now being implemented. Liberia commits to develop an assurance system for timber legality and to import only FLEGT-licensed timber to the EU.
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Malaysian furniture companies meet India’s retailers

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The Malaysia External Trade Development Corporation (MATRADE) has issued a press release on its recently organised ‘Specialised Marketing Mission’ for Malaysian furniture makers to Mumbai. The mission, which involved eight Malaysia’s furniture suppliers, has registered sales of RM 44 million (US$ 10,2 million).

The event was organised as part of MATRADE’s ‘quickwin’ measures to boost exports of Malaysian furniture products globally especially in India. The event has also provided Malaysian companies an opportunity to meet with India’s largest retailers as well as project owners in India.

India was identified as a high potential market for furniture as there is a growing middle class and an increasing expendable income which contributed to a rapid growth in India’s furniture retail. In 2014, India was the eighth largest consumer of furniture and among the top five retail markets in the world.

In the first ten months of 2015, India’s imports of furniture from Malaysia have grown 37.5 per cent to RM270.1 million (US$ 63,1 million). Malaysia was the second largest furniture exporter to India during this period after China.

This huge jump in imports was due to competitiveness of Malaysian products in India along with the increased growth of organised furniture retail.

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EU: Solid biofuel market expects big growth by 2020

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Current indices show that the amount of consumption of wood pellets and briquettes might grow approximately one and a half times by 2020, to 35 million tonnes. The same statistics show that this growth might reach 24 million tonnes by 2015, as the European consumers use solid biofuel both in the industrial production of heat and energy and for private households, according to the Ukrainian Biofuel Portal pellets-wood.com.
This increase represents an attempt to save the market from the economic and political factors of instability. Also, there is the current curve to use conventional substitutes for fuel, which work with renewable sources of energy. Solid biofuel is the main type of biofuel used in Europe.
Wood pellets and briquettes are mostly consumed in the private sector, because they are affordable and have good quality characteristics. Thus, the governments of the Member States of the EU have decided to make a project based on replacing coal and natural gas from private households to wood biofuel.
Germany, Italy, Denmark and the UK are the biggest European consumers of wood biofuel, and together with another 24 countries in the EU, they make for 80% of the world imports of wood biofuel, according to Eurostat.
Still, there is a high cost of production, together with a deficit in raw materials. This way, the European manufacturers of wood biofuel can’t meet the big demand. Moreover, the German and Swedish manufacturers announced a reduction of production, causing the inner trade of wood biofuel to decrease. Countries as the USA, Canada, Russia and Ukraine are now exporting more wood pellets and briquettes.
At this time, Poland, Germany, Slovakia and the Czech Republic are the main buyers for Ukrainian wood pellets, but also Italian and Baltic business representatives increased their demand for wood coming from Ukraine. Thus, the rates for the transportation, the need for certification and production prime costs are the most important factor for Ukraine to take into consideration.
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Dubai WoodShow 2016- set to be a promising event

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Organisers of the Dubai WoodShow, the largest exhibition in the Middle East for timber, machineries and tools, have revealed that the UAE is home to nearly 36% of the furniture factories of the GCC, reflecting the growth in the domestic furniture sector and increase in demand for imported timber from global and regional markets.

Dawood Al Shezawi, CEO, Strategic Marketing & Exhibitions, organisers of the Dubai WoodShow quoting Gulf Organization for Industrial Consulting (GOIC), says the GCC furniture industry includes 1062 factories, which recorded a growth of 4.5 per cent over 5 years. Al Shezawi added that the number of home and office furniture factories in the Gulf region saw a dramatic increase, which positively reflected on the growth of timber sector.

Dubai WoodShow, the biggest wood and woodworking machinery industry trade show in the Middle East, is set to host a larger number of exhibitors in its next edition to be held from 4 – 6 April at the Dubai International Convention and Exhibition Centre. Following an impressive turnout of 10,544 trade professionals from 95 countries last year, the exhibition has attracted even wider variety of products from global brands.

“The 2015 edition recorded a 26% increase over the previous edition, and we have completely sold out the exhibition space. Dubai Woodshow 2016 will be more diverse in terms of exhibitors’ portfolio and products," said Al Shezawi.

The Dubai WoodShow 2016 is set to expand its range of products to include Hardwood & Softwood, wood machineries & tools, flooring, plywood, veneer, MDF, laminates & boards, finishings & fittings, paints, adhesives & glues, and others. It will also be open for retail shoppers, making available a wide range of local and global brands targeting end users.

Dubai WoodShow brings together building materials suppliers & dealers, importers, exporters, furniture manufacturers, contractors, developers, machinery manufacturers, suppliers, distributors, dealers, flooring companies, architects, interior designers, as well as associations & institutions. The exhibition welcomes visitors from countries such as UAE, Saudi Arabia, India, Pakistan, Oman, Bahrain, Qatar, Iran, Kuwait, and China plus many others.

“Every year we witness the launch of new technologies introduced to this region for the first time through Dubai WoodShow. We could not be more delighted with the demand from the exhibitors for the 2016 edition, most of whom are looking to expand presence in the UAE through local investors,” concluded Al Shezawi.

Organised by Strategic Marketing and Exhibitions, one of the leading exposition and conference organisers in the Middle East, the Dubai WoodShow is considered one of its kind because it is not only dedicated to companies and large firms, but also to retail and end-users. The exhibition brings huge machinery as well as other retail products under one roof.

Louisiana-Pacific extends FlameBlock OSB capacity

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Louisiana-Pacific has broken ground on a project that will add a FlameBlock fire-rated OSB Sheathing line at its OSB mill in Clarke County, Alabama.

"This is an important moment for our OSB business and for LP," said CEO Curt Stevens."The production line in Clarke County will meet the growing demand in the single-family, multi-family and light commercial construction markets for our FlameBlock Fire-Rated OSB Sheathing," he added.

LP selected the Clarke County mill for the FlameBlock sheathing production line because of its strong workforce and proven performance in manufacturing commodity OSB from a safety, quality and environmental perspective.

In addition, the Clarke County mill produces 9ft and 10ft LP LongLength sheathing, often preferred for FlameBlock fire-rated wall applications.

Plans call for the multi-million dollar project to be completed in Q3, 2016, with production scheduled to begin Q4, 2016.

The LP Clarke County mill is one of LP's 10 OSB manufacturing facilities in North America.

LP FlameBlock Fire Rated OSB combines the strength of LP OSB with a non-combustible, fibreglass-reinforced Pyrotite layer and carries a Class A, 30min flame spread rating.

Global deforestation halved, says UN FAO

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The world's forested areas have decreased but rate of net forest loss has been cut by 50%, according to the UN FAO Global Forest Resources Assessment 2015. The biggest loss is in the tropics, particularly Africa and South America. Net forest area however, has increased in temperate and boreal regions in over 60 countries.

Image and Source: UN Food and Agriculture Organization/ Edited by Panels & Furniture Asia

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US framing lumber price drops $5 in mid-January

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The middle of January caught US buyers at a low profile, investing only in fill-ins or loadings. The winter weather conditions caused economic concerns in key markets. Also, the closing of future contracts from Friday caused this lack of activity. Giving the reluctant ground, very few orders were filled, Random Lengths reports.
The Random Lengths Framing Lumber Composite Price dipped $5, to $315.

Week
Jan 15		 Last Week
Jan 8		 Year Ago
2015
Random Lengths Framing Lumber Composite Price* $315 $320 $383
KD Western S-P-F #2&Btr 2x4 R/L Mill Price 265 273 336
KD Eastern S-P-F #1&2 2x4 R/L, delivered Great Lakes 360 375 442
Green Douglas Fir Std&Btr 2x4 R/L (Portland) 290 290 312
Southern Pine (Westside) #2 2x4 R/L 405 412 465
KD Coast Hem-Fir #2&Btr 2x4 R/L 303 303 345
Ponderosa Pine (Inland) #2&Btr 1x12 R/L 660 660 665
* Weighted average of 15 key items

Panel parket report
Last week’s stumbling in activity led to OSB prices adjusting in both directions. Still, mills from different regions had enough activity and orders as to keep things at an average level. Only few producers kept their prices, while others decided to decrease and open to counters. Western Fir plywood took a lot of effort, but managed to book some orders.

(f.o.b. mill prices) Week
Jan 15		 Last Week
Jan 8		 Year Ago
2015
Random Lengths Structural Panel Composite Price* $356 $360 $393
Southern (west-east) 15/32-inch 3-ply rated sheathing plywood 370-400 375-405 447-475
Southern (west-east) 15/32-inch 4-ply rated sheathing plywood 370-400 380-412 450-480
Western 1/2-inch 4-ply rated sheathing plywood 344 359 422
North Central 7/16-inch Oriented Strand Board 235 235 205
*Weighted average of 11 key items

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Logs & sawnwood prices in Brazil

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Brazilian logs, mill yard, domestic US$ per m3
Ipê 136
Jatoba 76
Massaranduba 80
Muiracatiara 84
Angelim Vermelho 77
Mixed redwood and white wood 67

Export Sawnwood Prices

Sawnwood, Belem/Paranagua Ports, FOB US$ per m3
Ipe 1438
Jatoba 992
Massaranduba 791
Muiracatiara 774
Pine (KD) 212

Domestic Sawnwood Prices

Brazilian sawnwood, domestic (Green ex-mill) US$ per m3
Ipê 662
Jatoba 337
Massaranduba 306
Muiracatiara 318
Angelim Vermelho 282
Mixed red and white 178
Eucalyptus (AD) 166
Pine (AD) 120
Pine (KD) 134

Export Plywood Prices

Pine Plywood EU market, FOB US$ per m3
9mm C/CC (WBP) 337
12mm C/CC (WBP) 298
15mm C/CC (WBP) 294
18mm C/CC (WBP) 290

Domestic Plywood Prices (excl. taxes)

Parica US$ per m3
4mm WBP 465
10mm WBP 371
15mm WBP 323
4mm MR 418
10mm MR 311
15mm MR 290

Domestic taxes include taxes and may be subject to discounts
Prices For Other Panel Products

Domestic ex-mill Prices US$ per m3
15mm MDParticleboard 206
15mm MDF 288

 
Export Prices For Added Value Products

FOB Belem/Paranagua Ports US$ per m3
Decking Boards
Ipê
 2,575
Jatoba
 1,609

 

Price source: ITTO

Logs & sawnwood prices in Brazil

Posted on by GWMI Admin
Brazilian logs, mill yard, domestic US$ per m3
Ipê 136
Jatoba 76
Massaranduba 80
Muiracatiara 84
Angelim Vermelho 77
Mixed redwood and white wood 67

Export Sawnwood Prices

Sawnwood, Belem/Paranagua Ports, FOB US$ per m3
Ipe 1438
Jatoba 992
Massaranduba 791
Muiracatiara 774
Pine (KD) 212

Domestic Sawnwood Prices

Brazilian sawnwood, domestic (Green ex-mill) US$ per m3
Ipê 662
Jatoba 337
Massaranduba 306
Muiracatiara 318
Angelim Vermelho 282
Mixed red and white 178
Eucalyptus (AD) 166
Pine (AD) 120
Pine (KD) 134

Export Plywood Prices

Pine Plywood EU market, FOB US$ per m3
9mm C/CC (WBP) 337
12mm C/CC (WBP) 298
15mm C/CC (WBP) 294
18mm C/CC (WBP) 290

Domestic Plywood Prices (excl. taxes)

Parica US$ per m3
4mm WBP 465
10mm WBP 371
15mm WBP 323
4mm MR 418
10mm MR 311
15mm MR 290

Domestic taxes include taxes and may be subject to discounts

Prices For Other Panel Products

Domestic ex-mill Prices US$ per m3
15mm MDParticleboard 206
15mm MDF 288

 

Export Prices For Added Value Products

FOB Belem/Paranagua Ports US$ per m3
Decking Boards
Ipê
 2,575
Jatoba
 1,609

 

Price source: ITTO

Swanson's new plywood and veneer mill to begin running in April

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Swanson Group is building a new plywood and veneer mill in Springfield, on the site of an old facility that burned in a fire in 2014. The mill will offer jobs for 200 people and, according to company information, the total costs rise up to $55 million, according to Portland Business Journal (PBJ).
The full capacity of the plant will be reached in August, although the construction will be ready in April this year. As Cameron Stewart, spokesperson for Swanson, said, the mill will be roughly 345,000 square feet, located at 1651 S F St. He added that the Oregon-based company’s "proven and dedicated workforce" have driven it to rebuild the facility.
As PBJ states, each month, the plant will produce about 20 million square feet of veneer, once the full capacity is reached. This veneer quantity will be turned into 10 to 12 million square feet of plywood products. During a full year, the mill will produce some 120 million square feet of finished plywood products.
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Swanson’s new plywood and veneer mill to begin running in April

Posted on by GWMI Admin

Swanson Group is building a new plywood and veneer mill in Springfield, on the site of an old facility that burned in a fire in 2014. The mill will offer jobs for 200 people and, according to company information, the total costs rise up to $55 million, according to Portland Business Journal (PBJ).

The full capacity of the plant will be reached in August, although the construction will be ready in April this year. As Cameron Stewart, spokesperson for Swanson, said, the mill will be roughly 345,000 square feet, located at 1651 S F St. He added that the Oregon-based company’s "proven and dedicated workforce" have driven it to rebuild the facility.

As PBJ states, each month, the plant will produce about 20 million square feet of veneer, once the full capacity is reached. This veneer quantity will be turned into 10 to 12 million square feet of plywood products. During a full year, the mill will produce some 120 million square feet of finished plywood products.

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Siempelkamp supplies particleboard plant with ContiRoll press in Russia

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Siempelkamp received four orders from the Russian market in 2015. At the end of December the company of the "SOUZ" Group activated the contract, which was concluded in 2014, for the supply of a complete particleboard plant including a Generation 8 ContiRoll® press. The "SOUZ" Group had already ordered two Siempelkamp plants back in 1990 for its Priosersk location in northern Russia. Within the scope of this order, for the first time, Siempelkamp supplied to the Russian market the first continuous press.
The current order consists of a complete plant for particleboard production which will be built in Balabanovo and will replace an outdated multi-daylight press for particleboard production of soviet design. Plitspichprom decided to buy a state-of-the-art 6’ x 18.8 m Generation 8 ContiRoll®. With pressure distribution plates, an extended cylinder bed and many new equipment features, the press will operate virtually isobaric and will manufacture boards with unprecedented quality. The plant is designed to achieve an annual capacity of up to 180,000 m³.
The equipment for the front-end of the line including chippers, flakers, and mills will be supplied by Pallmann, specialist for size reduction and preparation technology with headquarters in Zweibrücken, Germany.
The EcoFormer SL, developed by the Italian Siempelkamp subsidiary CMC Texpan, will be used for surface layer mat forming. This optimized innovative wind forming concept provides unprecedented uniform forming of the surface layer particles.
The Siempelkamp subsidiary Büttner will supply the drying technology including a drum dryer designed for a capacity of 36 metric tons per hour. The Siempelkamp scope of supply will be completed by Prod-IQ® control technology, which allows professional trending, commission evaluations as well as laboratory data and downtime management.
The start of installation in Balabanovo is forecast for September 2016, the commissioning for the summer of 2017.
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US-Canada Softwood Lumber Agreement is still under debate

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Lumber prices in the US have started to increase since they reached a 5-year in a row decreasing in September last year. Still, they remain approximately 20% lower compared o 2015, when the winter conditions pushed down the prices, affecting the demand and distribution of wood. The market has also been unsure because the Softwood Lumber Agreement (SLA) between the US and Canada expired in October 2015. Its renewal is still under debate.
The housing and construction markets have begun to rise from February to April 2015, with around 30% and the prices increases were also due to the rise in demand for exported lumber. Though, this demand wasn’t big enough to sustain the prices, so starting June 2015 they began to fall. Reaching 5-year in a row decrease was caused also by a weaker demand from China, high production in both the US and Canada and the trade agreement coming to an end.
The SLA began in 2006 and it served to regulate imports from Canada as to reach a minimum price range. Most forests in Canada are owned by the state, compared to the US, where the majority of the forestry is owned by private investors. This led to various complaints on the fact that the Canadian government supported the market, bringing the US to a disadvantage. The SLA was especially designed to prevent such cases by regulating the market.
Now, with the uncertainty upon its renewal, the US shows little interest in resining it until the conditions are renegotiated. This also brings the risk of trade disputes between the US and Canada.
Further on, the US might put restrictions on the trade with Canada, because the Canadian government might sell their lumber at lower prices, a thing that could cause prices increases on the US domestic market because of a lesser competition.
Still, for the moment, the housing in the US started to increase since November 2015 with 10% every month and it expected to grow the most since 2007, when the financial crisis started.
Now, there is time until October this year to renew the contract, as the previous one prevented litigation in the 12 months after the agreement finished.
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Weak economic growth continues to impact the European wood market

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Over the last 5 years, the words “flat”, “stagnant” and “slow” have frequently been used in relation to the European wood market. At the start of 2016, the situation has hardly changed. Overall growth in the European construction sector and wider economy has picked up only slowly since hitting bottom in early 2013.
The International Monetary Fund (IMF) estimates that GDP in the 28 European Union countries will grow 2% in 2016, marginally up from 1.9% in 2015. But there is mounting concern that the world economy will enter a cyclical downturn before Europe regains the ground it lost in the financial and euro crises.
Overall there’s been some convergence in economic performance between EU Member States since mid-2015.
This convergence is particularly apparent from the Eurostat Economic Sentiment Indicator (Chart 1) based on a monthly survey of perceptions and expectations in five surveyed sectors (industry, services, retail trade, construction and consumers) in all EU Member States.


Although still positive, over the last six months economic sentiment has declined in the UK, the one large EU economy that recovered relatively early from the financial crises. Meanwhile sentiment has improved sharply in several countries that were lagging, notably Italy, Spain and France.
The Eurostat Construction Production Index (Chart 2) shows that the recovery in EU construction effectively stalled after March 2015, with activity stuck at only around 95% of the level in 2010.
Construction activity in France and Italy was at historically low levels in 2015 and continued to decline throughout the year. Activity also lost ground in the UK and Poland, countries which were driving recovery in 2014 and early 2015. More encouragingly, activity remained robust in Germany, was rising in the Netherlands and at least remained stable at a higher level in Spain.

Slight uptick in building permits

The Eurostat Building Permits index (Chart 3), a forwardlooking indicator, also provides some encouragement that the workload of the European construction industry will improve in the near future. There was an uptick in the level of building permits issued across the continent in the second half of 2015. This was particularly driven by a significant increase in building permits issued in Spain and the Netherlands.
There was also a rise in building permits issued in the UK and Poland suggesting construction sector growth in those two countries will resume in 2016. Building permits remain at a high level in Germany.
Demand for wood products has benefitted only a little from Europe’s slow economic recovery in the last three years. This is evident from the Eurostat index of EU wood manufacturing activity which covers the sawmilling, veneer, panels and joinery sectors but excludes wood furniture (Chart 4).
European wood manufacturing activity remained stalled at around 97% of the 2010 level between the start of 2014 and second quarter of 2015.
However there was an encouraging uptick in the third quarter of 2015, with activity increasing in Poland, Austria, UK, Sweden, and Spain.
Rising activity in these countries during this period was sufficient to offset a slowdown in Germany and Italy, respectively the first second largest wood manufacturing countries in Europe.

Canfor takes over Wynndel Box and Lumber

Posted on by GWMI Admin

Canfor Corporation has entered into an agreement to purchase the assets of Wynndel Box and Lumber Ltd., located in the Creston Valley of British Columbia.

Wynndel Box and Lumber produces premium boards and customized specialty wood products sold under the brand name WynnWood.  It has access to high-quality fibre, and will advance Canfor's ability to produce a broader mix of higher value specialty products.

The acquisition of assets includes a sawmill located in Wynndel, BC with an annual production capacity of 65 million board feet, and approximately 65,000 cubic metres of annual harvesting rights in the Kootenay Lake Timber Supply Area.
The agreement is expected to close in the second quarter of 2016 and is subject to customary closing conditions.

"This acquisition will further increase our focus on specialty markets worldwide," said Canfor Corporation President and CEO Don Kayne.  "We are pleased to further grow and diversify the product line we are able to provide to our global customers, and to welcome our new colleagues at WynnWood to Canfor."

Canfor is a leading integrated forest products company based in Vancouver, British Columbia ("BC") with interests in BC, Alberta, North and South Carolina, Alabama, Georgia, Mississippi and Arkansas. Canfor produces primarily softwood lumber and also owns a 51.9% interest in Canfor Pulp Products Inc., which is one of the largest producers of market northern bleached softwood kraft pulp and a leading producer of high performance kraft paper.

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Hungary to join PEFC

Posted on by GWMI Admin

PEFC announced the Hungarian Forest Certification Non-profit became the 41st national member joining the organization.
“We have learned from experience that PEFC is much more than a just label that allows consumers to make ethical purchases. PEFC is a cleverly designed, robust technical framework. Perhaps even more importantly, PEFC is a community of friendly people who care about forests and care about our future. We are proud to become a member of this community,” said Endre Schiberna, Head of the Standard Setting Committee.
“Hungary is a perfect example of how the forestry sector can benefit from forest certification,” continued Mr. Schiberna. “While our forest related regulations are said to be among the most rigorous in Europe, the general public is unaware of this, even within the country. This means that Hungarian forest products are not favored by environmental-conscious consumers.”
“The development of the Hungarian national forest certification system is now approaching the final stages,” explained Mr. Schiberna. “The pilot test of the sustainable forest management standard expected to be finished soon, after which we can begin to move closer to submitting the system to PEFC for endorsement.”
PEFC is the world's largest forest certification system.
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