The Austrian wood industry recorded a turnover of 7.08 billion euros in 2014, and thus registered a decline over the previous year of -5.2%. The timber industry in Austria is generally a strong foreign trade-oriented industry. Austria primarily exports softwood lumber, laminated wood and wood materials. The export ratio in 2014 came at just under 68% and corresponded to a total of 4.78 billion euros. Here a slight decrease of -1.5% was recorded.
Most of the Austrian wood product exports (74.4% or 3.56 billion euros) were directed to European Union countries and here specifically to Germany and Italy. The remaining 25.6% were distributed to the other European countries (non-EU members) in a share of 13.1%; developing countries with 2.8% and other countries (such as USA and Japan) with 9.7%.
Given the dramatic developments in major export destinations, the decline in Austrian exports is nevertheless modest. The timber industry managed to respond flexibly, with failures of important export markets being replaced by others.
Positive trade balance
Austria's imports of wood products also declined in 2014, but to a lesser extent than exports. That's why the trade balance shows a weak surplus (+2.3% compared to 2013) and is currently at 1.1 billion euros. Total imports of wood products reached 3.67 billion euros (-2.6%). Again, the European Union was the main trading partner for the Austrian timber industry, with an 87.2% proportion of goods coming from the EU. Moreover, the recent years downward trend seems to have stopped.
Austrian timber industry is almost exclusively family-run
Austria's timber industry currently has 1,369 active companies, of which around 950 are sawmills. This diverse economic sector includes the sawmill industry, the construction sector, the furniture industry, the wood products industry and the skiing industry. The majority of the enterprises of the timber industry are small and medium operationally structured and are almost exclusively in private hands.
Number of employees continued to decline
Last year, 26,216 people were employed in the timber industry (2013: 27,928), of which 779 apprentices. The decline in the number of employees was due to the ongoing economic downturn, with three consecutive years of decreased production.
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European Commission to recognize two new EUTR monitoring organisations
After recognizing Bureau Veritas, ConLegno, Nepcon and Control Union as Monitoring Organizations (MO), at the beginning of February 2015, the European Commission added five new MOs with regards to EU Regulation 995/2010 (EU Timber Regulation): GD Holz Service GmbH, ICILA S.R.L., Le Commerce du Bois, SGS United Kingdom Limited, and Soil Association Woodmark.
Now in June, other two MO's were added by the EC: BM TRADA of Latvia and DIN CERTCO Gesellschaft für Konformitätsbewertung mbH of Germany
The Commission updated the list of recognized monitoring organisations.
Canadian softwood lumber exports to U.S. see higher taxes in July
In July, Canadian lumber exporters will see a tax increase on shipments to the United States. The export taxes are imposed under the 2006 Softwood Lumber Agreement between the two countries, and are determined by four-week averages of the Random Lengths Framing Lumber Composite Price.
In the applicable period (May 15 - June 5), the composite averaged US$315 per thousand board ft. (mbf). An average in a range of $316-335/mbf triggers a 10% tax for shippers in Western Canada, but an average of $315/mbf or less results in the highest tax rates of 15% for Western Canadian shippers, Random Lengths said.
The US$315/mbf average means that shippers in British Columbia and Alberta will pay taxes of 15%, while exporters in Quebec, Ontario, Manitoba, and Saskatchewan will pay 5% and face more restrictive quota allotments.
Finland wants to expand renewable fuel use to 40% by 2030
Finland's government has set out a bold target of reducing Finnish dependence on foreign fossil fuels, by halving oil imports and increasing the share of renewable fuels use to 40 percent by 2030. With its new programme the Finnish goverment seeks to generate more jobs and exports in the biofuel field. At the moment, only 8 percent of the fuel used in transport in Finland comes from renewable raw materials.
“I think that’s achievable – particularly in a country like Finland where we’ve been doing research and development in biofuels for a long time and where we have some of the world’s biggest players in this sector,” says Kaisa Hietala, Executive Vice President, Renewable Products at Neste, quoted by Finnish media.
“In Finland, the use of various kinds of forest biomass is a very interesting area that’s being studied right now,” Hietala says.
Already, Finnish forestry giants such as UPM, started commercial production of wood-based renewable diesel. In this respect, the company has build a biorefinery in UPM Lappeenranta which produces 120 million litres of renewable UPM diesel yearly. Since May, UPM started to sell its diesel fuel at pumps in Finland.
The Finnish Petroleum and Biofuels Association approves the goverment's programme, saying that the statements about renewable energy are bold and commendable. Recently the association changed its name from Finnish Petroleum Federation. The industry group says that domestically-produced biofuels are suited to Finland’s distribution system and current automotive stock are the most effective way to cut transport emissions.
The global forest industry in the first quarter
Sawlog prices inched up in the local currencies but fell in US dollar terms throughout the world in the 1Q/15. The Global Sawlog Price Index (GSPI) fell by 8.2%, to its lowest level since the 3Q/09. Global trade of sawlogs slowed in early 2015, with the biggest declines in importation occurring in China and Japan. Japan has for many decades been a major importer of logs, but over the past few years the country has also started to export logs thanks to the weak yen.
Global Pulpwood Prices
The stronger dollar, together with no or modest downward price adjustments of both chips and pulplogs in the local currencies, resulted in lower wood costs in US dollar terms in practically all major wood markets around the world.
The Softwood Fiber Price Index (SFPI) fell to $92.40/odmt in the 1Q/15, which was a decline
of 3.5 percent from the previous quarter and 7.1 percent lower than, in the 1Q/14. The current SFPI is at its lowest level since 2009. The biggest prices declines occurred in Russia, Germany, France, Brazil and the Nordic countries.
The Hardwood Fiber Price Index (HFPI) declined 4.0 percent from the 4Q/14 to the 1Q/15 to reach a nine-year low of $89.86/odmt. Wood fiber prices fell in practically all regions outside the US with the biggest declines seen in Russia, Germany, Spain, the Nordic countries and Australia.
Global Pulp Markets
This year has started out on a positive note for pulp producers, with global market pulp production being eight percent higher than during the first two months of last year.
With prices for softwood pulp falling and hardwood pulp prices increasing so far this year, the gap between the two pulp grades has narrowed to less than $100/ton, the lowest discrepancy since late 2013.
Global Lumber Markets
Global lumber trade continued to rise in early 2015 with shipments being almost ten percent higher than in the 1Q/14. Most of the trading activities were in North America and Western Europe, while imports to Asia was down.
Despite housing starts being lower in the 1Q/15 than in the 4Q/14, lumber production in the US increased slightly during the first three months of the year.
Canadian lumber production was higher in early 2015 than in late 2014 despite weaker demand in all the three major export markets, the US, China and Japan.
Lumber prices in the Nordic countries have fallen substantially since last summer in US dollar terms. The price decline in Finland and Sweden from August to February was 18% and 22%, respectively. Current price levels in both countries are at their lowest since 2009.
With the decline in the value of the Rouble, Russian lumber has been become more competitive. In dollar terms, the fall over the past 15 months has been about 27% and in Euro terms, just over eight percent.
Demand for softwood lumber in China has really taken off this spring with import volumes doubling from February to April.
Global Biomass Markets
Exportation of wood pellets from North America to Europe and Asia reached an alltime high rising 22 percent in 2014 from the previous year.
Lower demand for pellets in Central Europe resulted in lower prices for residential pellets during the spring. Average prices for pellets were down in both Austria and Germany to their lowest levels in over three years.
IKEA pledges € 1 billion in renewable energy
In an interview for Reuters, IKEA's CEO Peter Agnefjall said the the company will spend 1 billion euros on renewable energy and ways to help poor nations cope with climate change.
The investments will be "win, win, win. It's good for customers, good for the climate and good for IKEA too", said Chief Executive Peter Agnefjall, quoted by Reuters.
Of the total, the Swedish company will invest 600 million euros in wind and solar power, adding to 1.5 billion invested since 2009 as a target to making it energy independent.
The other 400 million euros will be handled by the IKEA Foundation, the charitable arm of the group, and will be used to support families and communities in nations vulnerable to impacts such as floods, droughts and desertification, says Reuters.
Agnefjall added that the investment fits IKEA's goal of having a "positive impact on people and the planet."
Finnish log prices drop in April
Roundwood prices in Finland declined slightly in April with only few exceptions. This applies both when compared with the previous month as well as compared to April 2014. On average, sawlog assortments became cheaper over March by -1.22%, while pulpwood prices are lower by almost the same percentage.
After an upward trend in the past few months, birch sawlog price declined by EUR -0,77/m3. However, it is still higher over April 2014. On contrast, birch pulpwood is more than -4% cheaper compared to April 2014.
Spruce sawlog price is also on a downward trend: EUR 0,75/m3 lower than the previous month and more than EUR -2/m3 compared to April of last year.
Roadside prices of roundwood in Finland EUR/m³ over bark |
April 2014 | March 2015 | April 2015 | Change Mar./2015 to Apr./2015 |
Change Apr./2014 to Apr./2015 |
| LOGS | |||||
| Pine | 57.46 | 57.32 | 56.91 | -0,71% | -0.95% |
| Spruce | 56.52 | 55.21 | 54.46 | -1,35% | -3.62% |
| Birch | 46.33 | 47.24 | 46.47 | -1,62% | +0,30% |
| PULPWOOD | |||||
| Pine | 29.12 | 27.80 | 27.23 | -2,05% | -6.49% |
| Spruce | 29.92 | 29.32 | 28.93 | -1,33% | -3,30% |
| Birch | 30.44 | 29.13 | 29.05 | -0.27% | -4.56% |
Massive Chinese overseas forestry investments
It has been reported that domestic investors invested some US$103 billion in 156 countries in 2014, up 14% year on year. In 2014 China's outbound investment surpassed inflows of foreign investment such that there was a net capital outflow. This marks a fundamental change in China's economic development pattern since the reform and opening-up period.
According to the available statistics China has around 200 forestry investment and cooperation projects in Asia, Europe, Africa, America and Oceania worth an estimated US$7 billion and employing almost 10,000. China's overseas forestry investment is benefitting from new opportunities through free trade zone strategies, bilateral investment protection agreements and deals on double taxation.
Since the creation of an International Trade and Investment Promotion office within the China Forest Industry Federation the rights and obligations of China's overseas forestry enterprises secure wider support.
However, it is recognized that Chinese enterprises investing in overseas forestry face many challenges such as an imperfect supportive government policy and insufficient financial and management support.
Other challenges include a lack of experience on the part of investors, a low level of business management capacity, an inability to correctly assess and react to risks and a lack of international business acumen.
Turkey: 50% increased tax on furniture imports
On May 23, a decree by the Turkish cabinet of ministers increased the tax rate on furniture imports to 50 percent from 13 percent.
Turkish furniture manufacturers welcomed this decision. The increased tax on furniture imports will have a positive effect on the Turkish furniture industry, as well as on employment, the head of the Ankara Furniture Manufacturers Chamber, Huseyin Taklaci said on Wednesday, quoted by Turkish media.
This step taken by the government should bear fruit in the future. The decision will contribute to both employment and to Turkey’s market share in the world furniture industry, ” Taklaci said.
Moreover, Turkey's Ministry of Economy has initiated anti-dumping investigations on plywood imports of Chinese origin.
Turkish media reports that Turkey's Plywood Producers Association has applied to the economy ministry for action, claiming that Chinese plywood is being exported to Bulgaria and Vietnam, then sold to Turkey as local product. This effectively bypasses trade barriers on the Chinese products, the association said.
Japan develops rubberwood parquet floor
Sanyu Yukakoji (Tokyo), wooden floor applicator for condominium, school and commercial buildings, has developed rubberwood flooring blocks jointly with a flooring manufacturer in Thailand. It will start marketing the product since this summer.
Main target is low grade flooring market for DIY stores. Parquet flooring block is 12 mm rubberwood finger jointed lumber plus 3 mm of polyethylene, making total of 15 mm thick.
Parquet flooring blocks are generally made out of oak, beech and birch but cost of such hardwood species have been soaring and they are hard to get so the market is looking for less costly product.
Rubberwood is low cost material and the quality has been tested by experimental works by Sanyu. Initial shipment is 20 feet container, which takes about 900 square meters.
EU: Graanul Invest takes Latvian wood pellet producer
Swedish companies "BillerudKorsnas AB" and "Baltic Resources AB" have signed an agreement on acquisition of 100 percent stake in Latvian wood pellet producer "Latgran" by Estonian company "Graanul Invest".
The deal will be closed in July 2015, after meeting specific agreement terms.
"Latgran" produced 497,000 tons of industrial wood pellets at four factories last year, registering turnover in the amount of about EUR 73 million. The company plans to increase its production volume by about 20 percent in 2015, thanks to a new factory in Gulbene.
"Graanul Invest" is the largest wood pellet producer in the Baltic region, manufacturing 853,000 tons of pellets in 2014. The company owns four factories in Estonia and one in Lithuania. The company produces not only industrial wood pellets, but also high-grade or "premium" pellets.
Back in March 2015, Graanul Invest, has acquired 16 hectares of land in the region of Western Latvia Broceni district to build a pellet factory. The plant estimated capacity is around 150,000 tons of pellets per year and it is expected to start production in the beginning of 2016.
"Baltic producers have acquired strong positions in the market. As a result of "Latgran" and "Graanul" merger, the largest European wood pellet company and one of the leading global players will be created, with the aim to produce 1.8 million tons of wood pellets in 2015," said Ilmars Kass, CEO of "Latgran".
Europe and Russia face large increases in LVL capacity
LVL capacity in the EU is expected to rise from the current level of 410,000 m3 to 590,000 m3 by the middle of next year.
Current capacity consists of a 230,000 m3 line operated by Metsa in Finland and a 180,000 m3 line operated by Pollmeier in Germany. An additional 80,000 m3 of capacity is now being installed by Steico in Poland and a further 100,000 m3 by Stora Enso in Finland.
Meanwhile, MLT which operates in western Russia currently has 120,000 m3 of installed LVL capacity. New investment by MLT is expected to increase this capacity to 150,000 m3 by the middle of next year.
This production is believed to be based on softwoods, with the exception of Pollmeier in Germany which utilises beech.
Market position for Egger increases, offers positive outlook
The Austrian Egger Group has closed its 2014/15 business year and is satisfied with its progress. The stable development above all in the field of decorative products for furniture and interior design had a positive effect on the past year. Egger has a good position on the market which demonstrates that the company is on the right track with its strategic investment and growth decisions, the company says in a press release. Egger is confident for the new business year and continues to invest strongly in its existing plants.
The wood-based materials manufacturer Egger looks back on a positive 2014/15 business year.
We were able to strengthen our market position. The field of decorative products for furniture and interior design experienced a particularly satisfactory development," says Ulrich Bühler, Head of Marketing and Sales Egger Group. Only in Russia was the development negatively influenced by the devaluation of the rouble. In general, the market environment was difficult for Construction Products and Flooring. "Market overcapacity, both for laminate flooring and for OSB, as well as currency effects and a partially weak demand in key receiving countries have led to slight regress", explains Bühler. "However, the overall positive development shows that we are on the right path with both our strategic decisions regarding investments and growth and with our product developments."
New investments
Egger has already paved the way to a continued stable development during the new business year 2015/2016 with the help of a comprehensive investment programme. During the previous year, the expansion of the headquarters in St. Johann in Tirol (AT) was completed with the new administrative building, the Egger Stammhaus, a high-bay warehouse for rawboards. In addition, an innovative short- cycle facility for laminations with deep surface textures on chipboard, as well as the manufacturing of laminates and compact laminates.
A new X-ray technology has entered operation at the Egger sawmill in Brilon (DE). New impregnation facilities were installed in several plants to serve the area of decorative products for furniture and interior design. In December 2014, a fourth impregnation channel for manufacturing melamine resin films went into operation in the Gifhorn (DE) lamination plant. At the same time, the Gagarin (RU) plant received its first impregnation facility. A new Vits system has been put into operation in Hexham (UK) in April, replacing an older system for the manufacturing of impregnated paper. The modernisation of the new glue factory in Hexham (UK) will be completed as scheduled by early summer. In addition, a highly efficient and fully automatic cutting saw entered operation in March at the Brilon (DE) plant.
The latest Egger investment is a new high-gloss and matt lamination line for PerfectSense at the Brilon (DE) location. It was developed together with Hymmen to produce the PerfectSense surfaces, presented for the first time at Interzum 2015. The focus here is clearly on expanding the product portfolio.
The current set-up of a flooring production facility in Gagarin (RU) should also be considered as setting the standard.
In the medium-term, we consider the markets of Eastern Europe and Russia to be strong growth markets for laminate flooring. We want to manufacture the products required by regional demand directly on site", explains Ulrich Bühler.
Price of wood pellets goes down in April in Germany
The price of wood pellets in Germany has dropped in May both as compared to the previous month as well as compared to May 2014. Pellets cost now on average 240,04 EUR per tonne. This represents a 1.8 percent decline compared to April 2015 and about 4 percent less than in May 2014. The price advantage of wood pellets over fuel oil is now of 25 percent.
In May 2015, pellets in Germany recorded the following regional differences: in south, pellets cost 236,20 EUR/t, for 6 tonnes purchases. In central Germany the same amount of pellets cost 242,18 EUR/t, while in the north/east 244,56 EUR/t.
Larger quantities (26 t) were traded in May 2015 at the following prices: north / east: 225,64 EUR/t, center: 225,31 EUR/t, south: 224,43 EUR/t (all incl. VAT).
Tembec puts off actions at its three Quebec sawmills
Tembec suspends operations at its three sawmills due to the high cost of wood supply in the Abitibi-Témiscamingue region, which makes its sawmills uncompetitive given the persistent weak market prices for lumber in North America. This represents 360 direct jobs at Tembec that are being affected by the new provincial forestry regime implemented in April 2013 .
Tembec has already expressed its concerns, on many occasions, to the Québec Government regarding wood costs at its sawmills in Abitibi-Témiscamingue," said James Lopez , President and Chief Executive Officer. "Unfortunately, these costs have increased more than 20%. We hope that the Premier of Québec, Mr. Philippe Couillard , will have the determination to act quickly, as he promised during his swearing-in speech of his Cabinet on April 23, 2014 ," added Mr. Lopez.
Tembec is still trying to obtain from the Québec Ministry of Forests, Wildlife and Parks an additional annual volume of some 300,000 m³ of softwood to ensure the long-term operations of its three Abitibi-Témiscamingue sawmills.
As of May 25 , Tembec's La Sarre , Senneterre and Béarn sawmills will suspend operations for a period of two weeks, removing approximately 12 million board feet of production. Further downtime may be required if conditions do not improve.
Tembec is a manufacturer of forest products – lumber, pulp, paper and specialty cellulose – and a global leader in sustainable forest management practices. Principal operations are in Canada and France . With annual sales of approximately $1.5 billion , Tembec has 3,400 employees, of which 1,700 work in Québec.
Chinese housing demand rebounds lumber prices in U.S.
Lumber futures prices are rebounding from recent lows as housing starts improve and orders from China increase.
According to the Wall Street Journal, lumber futures, which dropped to three-year low in the week ended May 15, have since rebounded by 15%, with July futures closing at US$269.60 per thousand board ft. (mbf) on May 21.
Futures rose sharply last week with the rally accelerating after the U.S. Commerce Dept. released housing construction data showing new-home construction up 20.2% in April over March to a seasonally adjusted annual rate of 1.135 million, the highest level since November 2007. The WSJ noted that this was the biggest monthly gain in percentage terms since February 1991.
Analysts said the improved figures were likely to extend the rally in lumber prices, especially if U.S. home building continues to recover. A further driver would be a rebound in exports to China, which consumes around 20% of U.S. lumber exports, as Chinese government schemes to stimulate construction and economic growth increase demand.
North American lumber exports to China between September 2014 and February 2015 were 1.015 million m3, down from 4.678 million m3 a year earlier, WSJ reported. More lumber available in the U.S. has added to the recent downward price pressure.
In the first four months of this year, Chinese housing starts fell 17% year-over-year, but analysts foresee a revival in home construction and predict that Chinese demand for lumber will pick up. Paul Jannke, a principal with consulting firm Forest Economic Advisors LLC, in Westford, Massachusetts, said some supply would be taken away from the North American market as exports to China increased.
Analysts also expect a sustained rebound in home construction and stronger employment in the U.S. Hamish Smith, commodities economist with Capital Economics, noted that building permits held steady earlier this year, even when housing starts were weak, and predicted that lumber prices would hit $360/mbf by the end of 2015.
By 2016 Japan will open 33 biomass power plants
Japan has witnessed a surge in biomass power plants after FIT (feed in tariff) system was introduced in July 2012. As many as 33 plants are expected to start operations in 2016 with 18 facilities being planned to start by April 2016.
The country's biomass consumption has also reportedly risen. According to ministry of economy, trade and industry data, in the period of January-November 2014, the consumption rose by 6.7 percent to 2 mn tons compared with the same period of 2013, says a Japan Biomass Power Market (JBPM) report.
According to JBPM, some of the biomass plants already operating include - Green Hatsuden Aizu, Green Hatsuden Ooita, Nagano Forest Resources Utilization Co-op., Woody Kawai, Nakagawa Biomass and Miye Enewood.
Meanwhile Japanese steelmaker Nippon Steel and Sumitomo Metal (NSSMC) has begun full operations at a 330MW on-site unit co-fired by wood chips and coal at its Oita steelworks in southern Oita prefecture. The company targets to increase wood-chip consumption to 48,000 t/yr from just 7,000 t/yr by June, through the upgrade of a 149MW unit, co-fired with coal, at its Kamaishi works in northern Iwate prefecture, JBPM reports.
In another development, Baker and McKenzie (Gaikokuho Joint Enterprise) is advising Renova and Kuni Umi Asset Management Co. on a woody biomass power plant investment. With a generation capacity of 20MW in Mukaihama, Akita city, the plant will be the largest power generation facility of its kind, that will use woody biomass as fuel.
Record wood products trade in China
According to the latest statistics from the State Forestry Administration, the value of China's 2014 international trade in wood products rose 8.4% to US$140 billion.
While this was a record high the rate of growth in trade fell by around 1% compared to
2013. Of the total, the value of imports rose 16% to US$67.8 billion and the value of exports also grew by 16% to US$72.2.
Wood pulp, logs, sawnwood, waste paper, paper, paperboard and paper products and
wood chips imports dominated the trade accounting for 95% of the value of wooden product imports in 2014.
The value of wooden furniture, paper, paperboard and paper products, plywood and other wood products exports accounted for 89% of the value of all wood products exports in 2014.
Wood pulp imports in 2014
Wood pulp remained the leading imported wood product in 2014. Wood pulp imports were 17.96 million tonnes valued at US$12.1 billion, up 6.6% in volume and 6.1% in value from 2013.
China mainly imported wood pulp from the US (23%), Canada (16%) and Brazil (12%). The top 10 suppliers are shown in the third diagram.
Wood chip imports in 2014
Wood chips imports in 2014 were 8.86 million tonnes valued at US$1.54 billion, down 6% in tonnage and down 22% in value from 2013.
China imported wood chips mainly from Vietnam (45%), Australia (24%), Indonesia (14%) and Thailand (12%). 95% of China's wood chips imports were from these four supply countries.
Wooden furniture exports in 2014
The value of wooden furniture exports in 2014 rose 14% to US$22.1 billion, accounting for 41% of the national total value of forest product exports and continued to be the number one export wood product.
The main export markets were the USA (32%), Japan (7%), UK (6%) and Germany (5%). The top 10 markets for China's wooden furniture exports are shown below. The main ports handling wooden furniture exports were Shenzhen (29%), Shanghai (21%), Fuzhou (10%), Ningbo (9%), Qingdao (8%) and Xiamen (7%).
EU imports of US wood pellets increased for the 12th consecutive quarter
Exportation of wood pellets from North America to Europe and Asia reached an all-time high rising 22 percent in 2014 from the previous year. Shipments from the US were up 40 percent year-over-year, while Canada exported 6 percent less in 2014 than in 2013.
US exports to Europe increased for the 12th consecutive quarter, reaching a new high of just over 1.1 million tons in the 4Q/14. Minor volumes of pellets to Asia, shipped by containers from the US West Coast, fell as manufacturers concentrated on seasonal local demand.
By far the largest consumer of US pellets that past year has been the United Kingdom, which in the 4Q/14 was the destination of 73% of US export volumes. However, the UK market has not always been in such a dominant position. In 2013, the share was 55% and in 2012 only a modest 31%.
With over 20 new export-oriented pellet plants being built or having credible plans to operate in the next two years in the Southern States, further significant growth in North American pellet exports can be expected.
British Columbia’s overseas pellet exports in the 4Q/14 fell by 15 percent from the previous quarter. While exports to Europe rose, shipments to Asia were substantially lower than in the 3Q/14. The slowdown from a labor dispute at the port of Vancouver, together with rail transportation challenges in the Interior of BC, contributed to the reduced export activities during the quarter. The major destinations for Canadian pellets in 2014 were in ranking order, the United Kingdom, the US, Italy and South Korea. Total export volumes from both Western and Eastern Canada trended downward for most of 2014 and in the 4Q/14 reached their lowest levels since mid-2012.
Notwithstanding the 4Q/14 slump in BC pellet shipments to Asia, pellet exports from Western Canada will likely continue to flow steadily until new production capacity is added in late 2015. The potential for increased pellet exports to Japan and South Korea remains strong, though specific agreements have yet to materialize.
Lumber Liquidators ceases selling of Chinese laminate flooring
Lumber Liquidators on Thursday announced that it has suspended the sale of laminate flooring coming from Chinese manufacturers. The decision comes after media allegations and US federal investigations which claimed that this specific laminate flooring contains excessive level of formaldehyde, a cancer causing chemical.
The company stated that it maintains confidence in China-made flooring it sells, but will pause sales while it continues to investigate the matter.
“Despite the initial positive air quality testing results we have received, we believe it is the right decision to suspend the sale of these products.” said Lumber Liquidators CEO Robert Lynch in a statement. “We will work diligently to meet the needs of our customers and to ensure their satisfaction.”
Formaldehyde is commonly used in the manufacture of laminate flooring, but usually in such small levels that it dissipates quickly. If employed in excess, the chemical can remain in the flooring even after it’s been installed. Prolonged, continued exposure to formaldehyde has been linked to numerous health problems ranging from nausea to increased cancer risk. Children are more susceptible than adults to the toxic effects of formaldehyde.
Lumber Liquidators has maintained that believes its flooring suppliers are compliant with safety standards. In today’s statement, the company claims that air quality testing for some of its customers shows that “over 97% of customers’ homes were within the protective guidelines established by the World Health Organization for formaldehyde levels in indoor air.” This statistic is based on the results of approximately 3,400 testing kits received from LL customers with China-sourced flooring in recent months.
