UK's forestry, wood and wood products sector is picking up after five years of low demand and little expansion, according to the UK Timber Trade Federation Statistical Review. In particular, growth of timber and panel products in 2014 was generally stronger than the year before with an overall volume increase of 10%. A 10% rise in UK timber and panel products consumption takes total consumption in 2014 to nearly 16 million m3.
Europe continues to dominate as the main supplier of timber and panel products with higher growth recorded than any other supplying region in 2014. All timber and panel products imports were higher by volume in 2014 with, as in 2013, particleboard and OSB imports achieving the highest growth rate, at 24%.
On the other hand, UK exports of timber and panel products fell by 3% in 2014, to a total of 576,000 m3. The provision of timber and panel products ready for use is valued at over £3.3 billion last year. The value added to these goods by wood processing industries puts the industry's turnover at around £7.6 billion.
"This Statistical Review shows very positive trends for the timber industry in the UK", says David Lennan, TTF Chief Executive. "The growth prospects are substantial and we hope to reflect this trend and wider sector growth in our next review."
For more information, please see TTF's Annual Statistical Review here
Article archive
The future of green building discussed at COP21
The fourth day of the COP21 United Nations Climate Change Conference on Thursday, last week had the theme of Buildings Day and saw the launch of the Global Alliance for Buildings and Construction, designed to scale up low-carbon development in the sector.
Eighteen countries including Austria, Brazil, Cameroon, Canada, Finland, France, Germany, Indonesia, Japan, Mexico, Morocco, Norway, Senegal, Singapore, Sweden, Tunisia, Ukraine, United Arab Emirates, the US, and over 60 organisations are part of the alliance.
The World Green Building Council (WorldGBC) is a key member of the initiative and committed to a ‘global market transformation’ to achieve both net zero carbon new building and the energy efficiency retrofit of existing stock by 2050.
EU firms pledge action Sixteen major European firms also made pledges to develop ‘nearly zero energy buildings’ (nZEB) for new build by 2020, and refurbished buildings by 2030.
The 'Moving towards net zero buildings' commitment, was been signed by 16 leading organisations including Acciona, British Land, Doosan, Ferrovial, GlaxoSmithKline, Hammerson, Heathrow, Interface, JLL, Kingfisher, Land Securities, Lloyd’s Banking Group, Philips, Skanska, Sky, Tesco.
In a statement, the group said the pledge was a response to the “lack of co-ordinated approach across the built environment sector in the delivery of energy efficient building”.
The plan outlines key actions that the signatories will take, including reducing energy intensity across corporate property estates; collaborating across the supply chain to set specific targets and engaging with policy makers on progress, reporting and progress towards zero energy goals.
Tech giant Google joined the RE100 global; renewable energy initiative with a target to triple its purchase of renewables by 2025 and a long term goal to power all of its operations with clean energy.
Google, which is already the largest private sector purchaser of renewables in the world, said it will purchase a further 842 megawatts of energy through a range of new global wind and solar projects.
Google is the latest tech giant to join the RE100 campaign after Microsoft and Adobe earlier this week and over 40 firms have joined the initiative since it was launched at Climate Week NYC in 2014 including Autodesk; Aviva; BT Group; Goldman Sachs; IKEA Group; Infosys; Johnson & Johnson; J. Marks & Spencer; Mars, Incorporated; Nestlé; Nike, Inc.; Philips; Starbucks; Unilever; and Walmart.
About COP 21
The 2015 United Nations Climate Change Conference, COP 21 or CMP 11 is being held in Le Bourget, Paris, from November 30 to December 11. It is the 21st yearly session of the Conference of the Parties to the 1992 United Nations Framework Convention on Climate Change (UNFCCC) and the 11th session of the Meeting of the Parties to the 1997 Kyoto Protocol. The conference objective is to achieve a legally binding and universal agreement on climate, from all the nations of the world. Leadership of the negotiations is yet to be determined.
The global forest industry in the third quarter of 2015
Sawlog prices have trended downward in most markets worldwide for the past five quarters, resulting in the Global Sawlog Price Index (GSPI) declining by over 14% in one year. In the 3Q/15, the GSPI was at its lowest level since the 2Q/09.
The European Sawlog Price Index (ESPI) has dropped 24% the past 18 months to US$94.10/m3 (€84.67/m3) in the 3Q/15. This decline is the result of slowing demand for lumber in some markets as well as weaker currencies throughout Europe.
Worldwide trade of softwood logs fell by over 12% during the first nine months this year as compared to the same period in 2014. Much of the decline can be tracked to declining imports to China, which have fallen 21% so far this year.
Global pulpwood prices
In the 3Q/15, the two WRI (Wood Resource International) global wood fiber price indices for softwood and hardwood fiber (SFPI and HFPI) were down by 9.0% and 11.0%, respectively, from the same quarter in 2014, mostly due to the strengthening of the US dollar.
The SFPI has fallen for five consecutive quarters and reached a six-year low of
US$89.64/odmt in the 3Q/15. The biggest price declines from the 2Q/15 occurred in Western Canada, Russia, Latin America and Oceania.
Hardwood fiber prices have followed the same downward trend as softwood fiber. The HFPI reached US$86.14/odmt in the 3Q/15, the lowest level since 2006. In the 3Q/15 hardwood fiber prices in Russia, Brazil, Chile and Australia fell the most.
Global pulp markets
Global production of market pulp continues to be higher this year than in 2014. During the first eight months of 2015, global supply of wood pulp reached 36.9 million tons, 3.5 percent higher than the same period last year.
Softwood pulp (NBSK) prices have continued to weaken during the fall, while prices for hardwood pulp (BHKP) have been surging upward for over a year.
Global lumber markets
Despite occasional gloomy reports from the sawmilling industry around the world this year, softwood lumber trade increased during the first nine months of 2015 as compared to the same period in 2014.
Lumber production in North America has been trending upwards ever since the Global Financial Crisis in 2008 when the lumber market crashed. The biggest production increase during the first eight months of 2015 occurred in Canada.
Lumber prices in the US started to recover in October and November after a 3 1/2 year low in the month of September.
Finland and Sweden have exported more lumber this year than in 2014. Export prices, in US dollar terms, have fallen dramatically over the past year, making the Nordic lumber producers more competitive in markets trading lumber in US dollars. Lumber import prices to China have fallen during much of 2014 and 2015. In
October, average import prices were 25% lower than their peak in September last year. The biggest price declines have been for lumber imported from Europe.
Softwood lumber exports from Russia fell slightly in the 3Q/15 as compared to the previous quarter, which had the highest quarterly lumber shipments ever recorded.
Global biomass markets
North American pellet exports to Europe were at their second highest level on record, reaching 1.37 million tons.
Pellet exports to Asia from British Columbia fell significantly in the first half of 2015.
Lower demand and relatively high production levels kept pellet prices at their lowest levels in three years in both Austria and Germany.
Europe still leads the world in wood pellet consumtion and production
In 2014, of the total worldwide 27 million tons of pellets, 13.5 million tonnes were produced in Europe. Pellet production has been steadily growing in the European Union in recent years: between 2010 and 2014 by 35%, and between 2013-2014 by 11%. The growth has been tempered mainly due to the lower gas and oil prices. These are some facts revealed in the latest analysis of the wood pellet market, which was carried out by the European Pellet Council (EPC), the umbrella organization of the European pellet industry together with the European Biomass Association (AEBIOM).
Pellet production has been steadily growing in the European Union in recent years: between 2010 and 2014 by 35%, and between 2013-2014 by 11%. The growth has been tempered mainly due to the lower gas and oil prices. Of the total EU consumption, 8.2 million were used in private heating systems; 2.8 million tonnes in industrial heating plants; 7.8 million tonnes of pellets were used in power plants in the United Kingdom, Belgium and Denmark, where they replace coal. The majority of the pellets used in power plants to produce electricity are imported from North America, namely around 5.2 million tonnes. Pellets for heating purposes are mainly used in Italy, Germany, Sweden, France, Austria and Denmark.
EU in a global comparison
With a share of 74% of the global pellet consumption, or 18.8 million tonnes, the EU is by far the largest consumer, even if the pellet consumption has grown by less than 1% in 2013-2014. This development is partly due to the mild winter, but also to the decline in industrial pellet consumption for electricity production in Belgium and the Netherlands.
Consumption of pellets in the United States has increased up to 2.5 million tonnes and now the US is among the 10 largest consumers outside the EU. In the Asian market, especially Japan and South Korea report a rapidly growing market: South Korea had a consumption of 1.9 million tonnes, compared to only 200.000 t in 2012.
Pellet production in the EU
In the EU, Germany is the largest pellet producer with 2.1 million tonnes, followed by Sweden (1.6 million t) and Latvia (1.3 million t). Even though Austria is now outside the top 3 producers, the evolution of the pellet market is still striking: the first Austrian pellets were produced in 1996, and in 2014, production reached 948.000 t.
In Switzerland too, the first pellets were produced in 1996, and now production has reached 160.000 t with a total consumption of 160.000. One reason for this slower progress is the lack of promotion of pellet heating systems which, of course, in Germany and Switzerland is well developed for some time. Plus, the oil price plays an important role: in these two countries, heating oil taxes are already very high, while in Switzerland taxation is very low.
In Italy, where heating oil is traditionally taxed very high, pellets have established themselves as an effective and environmentally friendly fuel for a long time. For this reason, Italy is now the largest consumer in the EU. Moreover the high level of pellet production in Austria and Germany is also due to the large domestic sawmills, where sawdust can be industrially pelletized relatively simple.
Lower roundwood prices in Estonia
On a yearly basis, nearly all roundwood assortments in Estonia have become cheaper in August 2015, with few exceptions. Pine logs were traded at 65.21/m³ (more than -5% below August 2014). Spruce logs price has decreased by -4.80% yoy, while birch logs are slightly more expensive against the same month of last year.
The price of small diameter logs (d<18) lost about EUR 3-5/m³ over last year. Pulpwood (pine, spruce and birch) price also declined by an average of EUR 7.32/m³.
The monthly price comparison shows more or less the same development, though the price drops are less significant in value. In August 2015, pine, spruce and birch logs declined only negligible over July, small logs managed to gain a price increase of more than EUR 2/m³. Pulpwood assortments price recorded some disparate movements: pine&spruce pulpwood became cheaper, while birch pulpwood price was slightly up.
Roadside prices of roundwood in state forests of Estonia (EUR/m³ u.b.) |
August 2014 | July 2015 | August 2015 | Change August.'14 to '15 |
| Logs | ||||
| Pine | 68.83 | 65.39 | 65.21 | -5.25% |
| Spruce | 66.40 | 62.51 | 61.21 | -4.80% |
| Birch | 58.21 | 59.72 | 59.11 | +1.54% |
| Birch veneer | 95.84 | 101.77 | 99.43 | -4.46% |
| Small logs (d<18 cm) | ||||
| Pine | 57.47 | 52.18 | 54.25 | -5.60% |
| Spruce | 52.03 | 44.06 | 46.75 | -10.14% |
| Pulpwood | ||||
| Pine | 26.60 | 25.16 | 23.26 | -12.55% |
| Spruce | 24.99 | 23.49 | 22.90 | -8.36% |
| Birch | 28.20 | 25.76 | 26.31 | -6.70% |
|
Fuelwood |
19.37 | 20.01 | 19.87 | +2.58% |
The above results are collected from metla.fi
Arauco buys Sonae to form giant in the wood panel industry
Sonae Indústria, parent company of Tafisa, has entered into a joint partnership with Chilean Inversiones Arauco Internacional, Limitada to sell its European and South African wood-based panels, chemicals and paper impregnation production facilities. The new venture will be named Sonae-Arauco, S.A. and is expected to be finalized in the first half of 2016.
In order to form the joint-venture, Arauco subscribed for 50% of Sonae's Tafisa, for a $150 million investment. Tafisa owns 10 panel mills that are distributed in Spain, Portugal, Germany and South Africa. Combined, these production facilities employ 3,000 people and produce a total of 4.2 million cubic metres of panels.
Tafisa has estimated annual sales of $900 million- produces and sells OSB, MDF, and PB panels, as well as sawn timber. Arauco will operate two panel mills and one saw mill in Spain; two panel mills and one resin facility in Portugal; four panel mills in Germany and two in South Africa. Sonae-Arauco’s production capacity will be about 460,000 m3 of OSB, 1.45 million m3 of MDF, 2.27 million cubic metres of particleboard and 100,000 cubic metres of sawn timber.
This investment will rank Arauco as the second producer in the wood panel global ranking, with an annual production of 9 million m3, which includes 50% of Tafisa’s production.
Resolute suspends logging in Quebec region
Resolute Forest Products is suspending indefinitely its wood-cutting operations in Quebec's Mauricie region near Trois-Rivieres.
The suspension, which starts Friday, will affect at least 180 jobs. The company attributed the decision mainly to high fibre costs, but also low market selling prices.
Spokesman Karl Blackburn says the decision won't have an immediate impact on an area sawmill that employs 135. However, that situation could change in the coming weeks once stockpiles are used up.
Resolute said it has had discussions with the provincial government about fibre costs and won't restart operations if the situation doesn't change.
Last summer, the company and two competitors temporarily suspended activities in Quebec's North Shore because wood was damaged by an infestation of spruce budworm.
First LIGNA conference to be held in Hannover in May 2016
The first-ever LIGNA Conference will make its debut at the Hannover Exhibition Center's Robotation Academy from 3 to 4 May 2016.
The conference, "Integrated production in woodworking - the way towards Industry 4.0," is specifically targeted at the woodworking trades and the furniture, building products, interior finishing and timber construction sectors. The event is organised by Deutsche Messe and the German Woodworking Machinery Manufacturers' Association.
Integrated production, which was also the keynote theme of this year's LIGNA trade fair, has proven to be a major talking point among exhibitors, visitors and the media.
"LIGNA reflects and continually adapts to the defining trends in the global market. Our focus on meeting the needs of our target groups and highlighting the key challenges facing the industry has made LIGNA the world's leading trade show for plant, machines and tools for the woodworking and wood processing industries. The Industry 4.0 theme we chose for this year's show resonated very strongly among all stakeholders, and this encouraged us to launch this new conference for the non-LIGNA years," explained Christian Pfeiffer, the Director in charge of LIGNA at Deutsche Messe.
The two-day conference will explore the intelligent integration of production and logistics processes and the practical benefits of Industry 4.0 technologies for users of woodworking machines. It will also feature real-life case studies that illustrate the wider benefits to the timber and furniture industries of integrated production systems - the ability to manufacture customized products at competitive prices, for instance.
Digitisation not only impacts companies' production processes, it also profoundly changes their long-term strategies. Next year's conference will also take an in-depth look at future business models. In addition, at a range of exhibits at the conference venue, attendees will be able to discuss their individual situation with integrated manufacturing experts.
Detailed information on speakers, topics and how to register will be available at the start of next year.
Capacity of Accoya wood doubled
Accsys, the chemical technology group, has reached a new agreement with Solvay Acetow Gmbh for the licensing, marketing and manufacturing of Accoya®. This new agreement provides the framework and funding for a significant increase in the manufacturing capacity in Arnhem, the Netherlands.
Solvay will purchase a minimum 76,000 cubic metres of Accoya from the Arnhem plant over the period from 2016 to 2020 and as a result of the increased manufacturing capacity in Arnhem and consequent greater sales capacity, under the new agreement Solvay will review the optimal timing to construct its 63,000 cubic metres Accoya manufacturing plant.
Accsys will double the existing manufacturing capacity at its Arnhem site in stages, up to 80,000 cubic metres per annum from 40,000 cubic metres. The initial incremental 20,000 cubic metres capacity is expected to come on stream in mid-2017.
The licence agreement covering Europe has been amended to provide increased royalties to Accsys and the return to Accsys of the selling rights for 20 European countries. Accsys will provide sales and marketing services to Solvay on agreed terms in respect of Solvay’s exclusive European territories.
GS Group launched the Sudoma sawmill in Russia
The added-value wood processing plant, Sudoma Timber Mill, LLC., located in the village of Pskov, Russia, which has been under construction since 2013 has been launched last week. The grand opening ceremony was held on November 14, 2015 in the village of Dedovichi. Sergei Donskoi, Minister of Natural Resources and Environment of the Russian Federation, Andrey Turchak, Governor of the Pskov region, and Artem Starodubtsev, Director of the GS Group forest-industry complex attended the event.
The Sudoma general investor – the GS Group holding company – invested over 1.842 billion rubles (around EUR 26 million) into the project. The sawmill's sawlog capacity will come up to 150,000 m3/year, while the finished-product output volume - 61,500 m3/year.
The sawmill will produce high-quality construction wooden products such as impregnated board, reclaimed board, planed timber, about 40% of which will be consumed domestically, while the remaining 60% will be exported. The equipment from EWD, WEINIG, Polytechnik and other leading companies is installed on the total area of over 24,000 m2 . Thus, the plant is tooled up with a camera for wood impregnation and three cameras, providing the thermo treatment of the material. As GS Group claims, Sudoma is the only production in Russia applying the special French technology of heating the timber to 230° C.
GS Group is an investment and industry holding founded in Russia. The Russian headquarters of the holding are located in St. Petersburg, the international office is in Zug, Switzerland. The group's key activities include: implementation of international broadcasting projects , R&D and production in such fields as nanotechnology, microelectronics; construction and development of Technopolis GS innovation center; deep wood processing and others.
Forest products markets in Europe and North America still slow
Markets show signs of rising consumption for some forest products, though the picture is far from consistent In Europe and North America, forest products consumption is strongly related to construction. The hoped-for recovery from the trough of the 2008 global financial crisis has not materialized. Housing starts in Europe and North America are still only about two-thirds of what they were in 2000. These were some of the market trends discussed at the Joint UNECE and FAO Committee meeting in Engelberg, Switzerland this month (Silva 2015).
One factor is what Sten Nilsson, CEO of Forest Sector Insights called “Hotel Mama”, a societal change whereby young adults (generation Y) are increasingly living at home with their parents. The number of 18-29 year-olds living with their parents in Europe has been increasing and is now approaching 50%. In North America this figure is lower but also increasing. According to Nikolay Ivanov, Vice President, Union of Timber Manufacturers and Exporters of Russia, this is in contrast to housing starts in the Russian Federation, where a record of more than one million new residences were constructed in 2014, with wooden construction taking a steadily growing share.
In North America, the Softwood Lumber Agreement between Canada and the US expired in October, 2015. Gordon Culbertson, Director, International Business at Forest2Market believes that both sides would like to reach an agreement but there are a number of factors that lead to complications:
- British Columbia’s sawnwood output is forecasted to decline (a result of the mountain pine beetle infestation).
- The US dollar has strengthened relative to the Canadian dollar.
- China’s demand for Canadian sawnwood is falling, increasing the fears of US producers that Canadian wood could flood the market and soften prices.
In recent years, Canadian-based sawnwood producers have taken a large stake in the US south. Currently, about 30% of the sawn softwood production in the southeast of the US (the country’s most productive area) is owned by Canadian-based companies. All these factors make it difficult to predict whether there will be an agreement in the near term.
Wood construction was also high on the agenda and, in particular, the use of cross-laminated timber (CLT), a relatively new product that enables builders to construct tall buildings from wood due to its engineered strength characteristics. The CLT industry is able to compete against concrete and steel as a construction material for large and tall buildings; and can outcompete steel and concrete where there is a desire for environmentally friendliness. The CLT industry has seen significant growth in production (more than 10% per year over the last 15 years) and architects continue to design and build ever-higher CLT structures (the current champion is 14 storeys and plans exist for other buildings with more than 20 storeys). A leading expert on CLT, Gerhard Schickhofer, Professor and head of the Institute of Timber Engineering and Wood Technology at Graz University of Technology, stated that the focus should be on buildings that are 3-5 storeys, rather than on moving too fast in producing the much taller structures that some architects seem to favour.
Overall, the production forecasts for forest products in 2015 show mixed results for Europe and North America, and a more positive view of the CIS. 2016 is forecast to be more positive for Europe, North America is predicted to remain mixed and the CIS region to decelerate. Panel production in the CIS shows the most positive developments while paper and board in North America has the most negative forecasts.
|
Forecast annual change for production of major forest products by sub-region |
||||||
|
Europe |
CIS |
North America |
||||
|
2015 |
2016 |
2015 |
2016 |
2015 |
2016 |
|
|
Industrial roundwood |
-0.2% |
1.1% |
1.8% |
3.0% |
0.2% |
-0.2% |
|
Sawn softwood |
0.6% |
1.5% |
1.9% |
0.8% |
1.1% |
2.0% |
|
Sawn hardwood |
1.4% |
1.4% |
3.1% |
0.0% |
-3.2% |
-0.3% |
|
Wood-based panels |
-0.1% |
0.8% |
2.6% |
4.2% |
2.0% |
2.9% |
|
Paper and paperboard |
-0.7% |
0.7% |
0.8% |
0.0% |
-1.5% |
-0.3% |
Silva2015 was a joint meeting of the UNECE Committee on Forests and the Forest Industry and the FAO European Forestry Commission), and was held in Engelberg Switzerland, 2-6 November.
Lack of interest in the extension of the Softwood Lumber Agreement
The Softwood Lumber Agreement between Canada and the US expired in October and negotiations have not started for a new trade agreement. The softwood lumber dispute is one of the longest and largest trade disputes between the two countries, with US producers accusing Canada of subsidising soft sawnwood production.
The US has shown little interest to sign a similar agreement because current market prices and limited Canadian wood supply have changed the trading environment. The US is Canada’s largest market for softwood sawnwood accounting for 66% of total exports in 2014, which accounts for about one third of total US consumption.
The agreement included export charges for Canadian producers. It provided a stable trade environment that ended with the agreement’s expiry, although a clause prevents either country from taking trade action against the other until October 2016.
A recently published report by the Canada West Foundation (Branching out: preparing for life without a softwood lumber agreement) recommends further market diversification for Canadian producers.
Canada may be able to use the Trans-Pacific Partnership (TPP) agreement to export more into growing markets, especially Vietnam, Thailand, Indonesia and Mexico. Canada already has the largest import share for sawn softwood in the Philippines.
Sharp fall Chinese logs import prices
Chinese imports of logs have dropped significantly during the first three quarters of 2015. Imports were down 14 percent in volume and 31% in value as compared with the same period of 2014. Of the total log imports, softwood imports were valued at around US$2.8 billion on a volume of 22.8 million m³ (an average value of US$122/m³).
Chinese softwood log markets have been very weak for more than one year (declining in price since Q1/2014). In August, the average costs of imported softwood logs were down 28% from their peak in April of 2014, and reached their lowest level since 2009. The biggest price drops this year have been for logs from Canada, New Zealand and Russia. Domestic log prices have been more stable in 2015, with Chinese fir sawlog prices declining only five percent from 2Q/14 to the 2Q/15, according to Wood Resource Quarterly.
Chinse lumber import prices have also fallen during 2014 and 2015, but the decline has been less dramatic than those for logs. In August this year, average Chinese lumber import prices were US$191/m3, or 15% lower than their peak in September last year. The biggest price declines have been for lumber imported from Europe, while the price fall for hemlock and Douglas-fir from the US has been quite moderate.
Latest timber prices in India
The second round of auctions for the current season has been concluded at Forest Depart Depots in Surat and Vyara. Around 12,000 cubic metres of good quality domestically grown teak and some non-teak hardwoods was on offer.
Despite prices for imported plantation teak easing auction prices were firm. Locally grown teak is always preferred by millers as the quality is higher, the sap is smaller, the form is good and the girths are larger all of which contribute to better recover rates in the mill.
Average prices recorded at the most recent auction were as follows:
| Teak logs | Per cubic foot |
| A quality for ship building | Rs. 2900-3000 |
| B quality for ship building | Rs. 2800-2900 |
| A for sawing | Rs. 2700-2800 |
| B for sawing | Rs. 2600-2700 |
| A Long length logs | Rs. 2400-2500 |
| B Long length logs | Rs. 1800-1900 |
| A 15 ft.& longer | Rs. 2200-2400 |
| B 15 ft.& longer | Rs. 1600-1700 |
| Long length, Medium Quality | Rs. 1400-1500 |
| Short length, Medium Quality | Rs. 1300-1400 |
| Short Length, Thin logs | Rs. 1100-1300 |
Variations are based on quality, length and average girth of logs
Good quality non-teak hardwood logs, 3 to 4 meters long having girths 91cms and up of haldu (Adina cordifolia), Laurel (Terminalia tomentosa), kalam (Mitragyna parviflora) and Pterocarpus marsupium fetched higher prices than in the previous auction in the range of Rs.800- 900.
Prices for medium quality logs were in the range of Rs.300-400 per c.ft. The next round of auctions will be held in the North and South Dangs Divisions and the indications are that a large volume of logs will be available.
Prices for imported plantation teak, C&F Indian ports
Prices are unchanged from the end of September.
| US$ per m3 | |
| Angola logs | 459-574 |
| Belize logs | 350-400 |
| Benin logs | 304-628 |
| Benin sawn | 530-872 |
| Brazil logs | 375-596 |
| Brazil squares | 370-556 |
| Cameroon logs | 405-538 |
| Colombia logs | 262-811 |
| Congo logs | 451-500 |
| Costa Rica logs | 320-780 |
| Côte d'Ivoire logs | 277-552 |
| Ecuador squares | 330-564 |
| El-Salvador logs | 381-934 |
| Ghana logs | 273-500 |
| Guatemala logs | 360-646 |
| Guyana logs | 300-450 |
| Uganda teak sawn | 680-900 |
| Kenya logs | 515-600 |
| Laos logs | 300-605 |
| Liberia logs | 265-460 |
| Malaysian logs | 225-516 |
| Nicaragua logs | 402-505 |
| Panama logs | 381-430 |
| PNG logs | 443-575 |
| Sudan logs | 468-620 |
| Tanzania, teak, sawn | 307-613 |
| Thailand logs | 511-700 |
| Togo logs | 354-542 |
| Trinidad and Tobago logs | 557-680 |
| Uganda logs | 411-542 |
| Uganda Teak sawn | 680-900 |
Variations are based on quality, length and average girth of logs
Prices for locally sawn hardwoods
| Sawnwood, (Ex-mill) (AD) | Rs. per ft3 |
|
Merbau
|
1500-1650 |
|
Balau
|
1500-1600 |
|
Resak
|
1200-1400 |
|
Kapur
|
1250-1300 |
|
Kempas
|
1100-1200 |
|
Red Meranti
|
900-950 |
|
Radiata pine AD
|
600-725 |
|
Whitewood
|
600-700 |
Variations are based on quality, length and average girth of logs
Myanmar teak logs sawn in India
Despite the decline in stocks purchased before the log export ban there has been no change in price levels for domestically milled Myanmar teak
Prices for domestically milled Myanmar teak
| 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
|
4500-4750 |
|
Plantation Teak FAS grade
|
3500-4000 |
Price variations depend mainly on length and cross section
Imported sawnwood
Prices for imported sawnwood (KD 12%) shown below. No significant price movements have been reported.
| Sawnwood, (Ex-warehouse) (KD) | Rs per ft3 |
| Beech | 1300-1350 |
| Sycamore | 1300-1400 |
| Red oak | 1500-1650 |
| White Oak | 1600-1800 |
| American Walnut | 2300-2400 |
| Hemlock clear grade | 1300-1400 |
| Hemlock AB grade | 1100-1200 |
| Western Red Cedar | 1600-1650 |
| Douglas Fir | 1200-1300 |
Price variations depend mainly on length and cross section.
Domestic plywood prices
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 | |
Kährs increases hardwood flooring sales
Kährs Group reported a positive third quarter. Net sales of the Group rose SEK 62 million, or ten percent, to SEK 689 million during the quarter. EBITDA for the quarter was SEK 78 million, an improvement of SEK 14 million and an increase of 22 percent compared with 2014. For the entire January to September period, the equivalent profit was SEK 231 million, an increase of SEK 50 million or 28 percent compared with the same period in 2014.
The positive development of Kährs can mostly be attributed to the increased demand in the hardwood flooring segment. The hardwood flooring product area accounted for 86 percent of the Group's sales. In the third quarter alone, sales of hardwood flooring climbed 10 percent to SEK 595 million (541), and growth for the first nine months combined was 6 percent and rose to SEK 1,760 million (1,653).
Kährs has reported an upward trend also for resilient, laminate and tile flooring. Sales for the product area, which accounts for about 10 percent of Kährs consolidated net sales, amounted to SEK 69 million (62) for the third quarter, an increase of 11 percent. For the period as a whole, sales totalled SEK 216 million (201), corresponding with an increase of SEK 15 million or 7 per cent.
Net sales for Kährs product group Other, including flooring accessories, increased by 4 percent to SEK 25 million (24) for the quarter.
The demand varies in the different markets. Sweden continued to deliver a strong performance for Kährs. Sweden alone reported growth of 29 percent compared with 2014. The picture in Finland is gloomier: the market continued to shrink, however Kährs Group is well positioned in the Finnish market. Growth in Russia was steady, albeit at a lower level compared to the previous year, due to the weakening of the ruble. Kährs benefited from a strong brand and good local presence in Russia, both in production and sales.
Central Europe showed good growth for Kährs in several markets, especially in the UK, but also in Switzerland, Germany and Austria. In region Americas, the US is the main growth driver and demand remains strong for the Group.
New timber trading centre opens in China
Lanshan Port will become significant timber trading centre in Northern China as a result of State Forestry Administration (SFA) approval for the building of a national timber trade and processing zone at the port.
This zone extends over 56,700 square metres capable of handling around 2 million cubic metres annually. It is anticipated that a further 24 national timber fumigation treatment zones with a capacity to handle 1 million cubic metres will have been completed and operated by the end of 2015.
On completion of construction logs from Canada, the US, Russia, Japan, New Zealand and Australia will be fumigated in the zone.
Lanshan Port is located in northern corner of Yellow Sea in Haizhou Bay and is southeast of Rizhao city, Shandong province which is one of the export ports for the new eastern bridgehead of the Asia-Eurasian Continental Bridge.
Kronospan takes over Danish particleboard manufacturer Novopan
The Kronospan Group has acquired all shares of the Danish particleboard manufacturer Novopan Træindustri as of November 6, 2015. The former owners of Novopan - PenSam LD EQUITY 1 and FIH - have held the shares for more than 30 years and for strategic reasons, they decided to sell their shares in Novopan.
According to Danish media, the sale of Novopan comes as no surprise. Already since 2007 Novopan was put on sale allegedly at a price of about a quarter-billion Danish krona (around 33,5 million euro). A lot of buyers have shown interest, however, no one would pay the right price, Hans Lohmann, the former CEO of Novopan, stated to Danish media.
Novopan has a strong market position in the Nordic markets, and with the acquisition, Kronospan seeks to improve market share in Scandinavia.
Kronospan is the world's leading manufacturer of wood panels. The group has over 40 production facilities and more than 14,000 employees. With the acquisition of Novopan, Kronospan plans to implement its successful range of products such as Kronodesign and Kronobuild in Novopans product range.
Novopan Træindustri A-S operates as a particleboard manufacturer that manufactures and markets chipboards, wall panels, door frames, and laminated flooring. The company also supplies support materials for laminated flooring. Its products are used for new building and refurbishment projects. Novopan serves the Danish building industry, and kitchen and furniture manufacturers. Novopan was founded in 1950 and is based in Ryomgaard, Denmark.
EPAL warns against fake Ukrainian Euro pallets
The European Pallet Association e.V. is warning against counterfeit EPAL Euro pallets from Ukraine, which have been in circulation on the market since the beginning of 2015. According to the association, these are counterfeit branded pallets that are not permitted to be ordered, imported, stored or sold.
The European Pallet Association e.V. is working intensively to take action against the inferior quality counterfeits and has already alerted the customs authorities at the external borders of Germany, Poland, the Czech Republic, Slovakia and other countries. EPAL advises that Euro pallets should ONLY be ordered from EPAL-licensed Ukrainian companies.
A list of the Ukrainian EPAL licensees can be found here.
Read the full warning here.
Rising New Zealand log export prices on lower Chinese inventories
New Zealand log export prices increased slightly in October on lower inventories in Chinese ports and a rise in demand. New Zealand A-grade logs increased at an average wharf gate price of NZ$83 per tonne from NZ$82/t in September, according to an AgriHQ report mentioned by WoodWeek.
According to the report, prices for New Zealand export logs are largely determined by China, the country's largest market, where weaker demand has seen a build-up of inventories. A decline in the number of logs sent to China and a pick-up in demand has reduced inventories on Chinese ports to 3 million cubic metres from 4.7 million cubic metres in August, which is supporting prices.
"While credit lines are still posing problems, consumer confidence has lifted which has helped bolster domestic demand within the Chinese market," said AgriHQ analyst Emma Dent. "Should volumes to China remain low, and off-take from ports hold at steady levels, price increases are likely."
Still, while most participants in the survey are expecting price increases, the market remains volatile and uncertain, Dent said. Prices and inventories heading into the Chinese New Year period in February, when ports are closed, will play a strong role in determining how the market plays out next year, she said.
Meanwhile, prices for New Zealand domestic logs were steady this month with pruned logs at NZ$164 a tonne, structural logs at NZ$105 a tonne, and pulp logs at NZ$50 a tonne, according to AgriHQ.
European parquet market stable
The Board of Directors of the European Federation of the Parquet Industry met on 20 October 2015 and discussed amongst others both the parquet situation and recent economic indicators on the European market.
Overall, parquet sales on the European market during the first 9 months of 2015 look more or less stable compared to the same period last year. More countries are getting out of the red zone. Positive news comes from Sweden, the Netherlands, the United Kingdom, Czech Republic, Poland and, to a lesser extent, Denmark.
A brief per country recap is provided in the table below.
Market overview
| Austria | The information provided to FEP points in the direction of a stable market compared to the same period of last year. |
| Baltic countries | Indications collected from FEP Board members point towards negative sales figures in the first nine months of 2015. |
| Belgium | Consumption and production are both reported to be stable. |
| Czech Republic | The Czech parquet market seems to be performing a little better in the first 9 months of 2015 than during the same period in 2014. Growth is estimated to be in the order of 1 to 2%. |
| Denmark | The market remains stable, and could even be slightly positive (± 1%) when compared to the first 9 months of 2014. |
| Finland | Parquet sales are down by an estimated 5 to 8%. The perspectives for next year seem better, with new constructions expected to perform better, in a hesitant market. |
| France | Business started out well this year, with sales improving by an estimated 3% during the first months of 2015. The second quarter was still good, before a weaker 3rd quarter. Overall, this translated into a pretty flat picture. |
| Germany | Compiled data indicate that parquet sales in the first 9 months of the current year have remained comparable with the same period of the previous year. DIY markets tend to face more difficulties. LVT remains a strong competitor. |
| Hungary | Parquet sales do not seem to improve in Hungary. FEP Board members expect the market is maintaining itself at a stable level compared to the same period last year. |
| Italy | Altogether, the consumption of parquet remains stable. Higher taxes weighing heavily on the housing market are reported to be a major problem as well as a harsh competition from China and Eastern Europe. |
| Netherlands | The market is characterised by a slight increase (in the order of 1 to 2%) in consumption compared to the first 9 months of 2014. This results in a proportional increase on the production side. The housing market is presently appealing, with a better outlook than in the last 7 years. |
| Norway | The Norwegian parquet market is down by an estimated 6%. The retail market is stable. |
| Poland | Polish parquet sales are improving by an estimated 3%. |
| Spain | Compared to the same period last year, the Spanish parquet market is stable to slightly up (+1%). However, there are no big projects ongoing for the time being as all stakeholders await the results of the elections scheduled to take place on 20 December. |
| Sweden | The Swedish market has grown by some 3% in the first three quarters of 2015. Parquet sales should end the year on a positive note. |
| Switzerland | For the first time in 5 years, the market remains flat due to the second home initiative -new homes are forbidden in recreational areas - and to immigration. Implications for the future are negative in construction. The renovation business is expected to grow. |
| United Kingdom | Estimates are that the total UK market is performing rather well, with parquet sales growing by 4 to 6%. To be confirmed. |
| Russia | Parquet sales follow a downwards trend. Exports to Russia follow the same path. |
