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Wood pellets’ prices in Poland: 2013 and Q1/2014

Posted on by GWMI Admin

Poland has produced about 600,000 tons of wood pellets in 2013. Along with imports, the Polish wood pellets market was somewhere around 1 million tons in 2013, says a report of the Ukrainian Biofuel Portal . The report notes that due to the collapse of the green certificate market, the recent years strong developments in the Polish pellet market has suddenly stopped in 2013, with a significant decline in the second half of last year. 'In this unstable certificate situations further development of the wood pellet market is impossible, as the wood pellet market is a part of the biomass market,' said Marek Cecerko, head of the thermal power plant of Mondi Swiecie company and member of Board of Directors of Polish Biomass Chamber.

According to the Ukrainian Biofuel Portal the following average wood pellets prices were registered across Poland in 2013:

  Wood pellets Other types of pellets
2013 Average Price of Wood Pellets in Poland For domestic use (including 23% VAT) For industrial use (excluding VAT) For domestic use (including 8% VAT) For industrial use (excluding VAT):
-wholesale purchases: 145-185 EUR/t; wholesale purchases: 105-120 EUR/t wholesale purchases: 95-130 EUR/t; wholesale purchases: 90-105 EUR/t
-in big bags: 155-185 EUR/t;   in big bags: 110-135 EUR/t;  
-in sacks of 15/20/25 kg: 170-220 EUR/t.   in sacks of 15/20/25 kg: 120-155 EUR/t.  

In the first quarter of 2014 the actual prices оn the Polish pellet market are as follows (gross price):

  • West Poland: from 800 – 1050 PLZ/t (190 – 250 EUR/t);
  • East: 680 – 1100 PLZ/t (162 EUR/t – 262 EUR/t);
  • North: 740 – 1107 PLZ/t (176 EUR/t – 264 EUR/t);
  • South: 550 – 1200 PLZ/t (131 EUR/t – 286 EUR/t).

The pellet price has increased in Poland as a consequence of 'conjuncture changes of supply and demand, toughening imports of solid biofuel and reducing volume of foreign deliveries'. The cheapest pellets can be found in southern and eastern parts of Poland, mainly because of the proximity to two major exporting countries, such as Poland and Belarus. The most expensive pellets are in the western region.

The report notes that without changes in the green certificate policies no improvement should be expected in the Polish pellet market.

Source: Ukrainian Biofuel Portal

Exports of pellets and wood chips decline sharply in Sweden

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In 2013, Sweden's exports of pellets declined by 17 % to 285 000 m³f ub (cubic metre solid volume excluding bark), while imports rose by 40 % to 1.1 million m³f ub compared to 2012, the Swedish Forest Agency reports. Denmark is a major importer of Swedish pellets. Imports of pellets have increased mainly from Russia, Latvia and Estonia.

Exports of wood chips fell 24% to 157,000 m³f ub (of which 90% was of softwood) and imports decreased by 5% to 1.0 million m³f ub (of which 90% was of softwood). Almost all the exports of chips went to Denmark and Norway. Imports of chips came mainly from Estonia, Finland, Latvia and Norway.

Exports in Finland’s forest industry expected to rise in 2014 and 2015

Posted on by GWMI Admin

The world economic growth and a slight economic recovery in Europe will improve the outlook for the Finnish forest industry, says a new study of the Finnish Pellervo Economic Research Institute (PTT). Export income of the whole forest sector will rise this year as well as next year. Development within the forest industry will continue to divide. Paper production and exports will decrease, but exports of sawnwood, pulp and paperboard will rise, while the profitability of the Finnish forest industry will slightly improve.

More paper machine closures expected, paperboard production to increase

Despite the slight economic recovery, paper production will decrease in Finland this year 3-5 per cent and next year 4-6 per cent. The demand has been trending downwards for many years as paper has been replaced by electronic communications. The same trend is expected to continue in the coming years. A positive outlook in the Finnish paperboard industry will increase its exports and production.

The average export price of paper will decrease this year. Overcapacity in Europe’s paper production explains the poor price development. PTT estimates the average price to rise next year, which however calls for reduction of paper supply in Europe. Paper machine closures will continue.

Pulp exports continue to grow

The demand for pulp has remained strong for several years now. This has partly toned down the effects of the decreased paper production in Finland. Pulp exports will increase further this year and next year. In addition to good demand, the grow th of exports will be supported by the reduced domestic demand for pulp in the paper industry and increasing pulp production capacity.

Sawnwood exports in good shape

PTT sees no signs of significant weakening in Finnish sawnwood export markets. Exports from Finland will grow this year 3-4 per cent and are to strengthen further next year. Continued poor demand in the domestic building sector will sl ow down sawnwood production growth this year. The production of sawnwood is expected to rise this year more than two per cent and next year up to five per cent. Despite the challenging market situ ation, sawnwood prices will rise this year and next year. The average export price of sawnwood wi ll also be gradually raised by the increase of export market share of some primary markets in Europe.

Key forecast variables for the Finnish forest industry in 2014 – 2015

2014f 2015f
%Change %Change
Export makets Volume Price Volume Price
Paper -5%/-3% -2%/-1% -6%/-4% 0%/2%
Pulp 4%/6% 2%/4% 5%/7% -6%/-3%
Paperboard 1%/2% 1%/4% 1%/3% 1%/3%
Sawnwood 3%/4% 2%/3% 4%/6% 3%/4%

f=PTT forecast

Softwood exports to China tripled by European sawmills in 2013

Posted on by GWMI Admin

After a slowdown in 2012, China's expanding housing market has driven up its demand for logs and timber this year. Even if Russia, Canada, US and more recently New Zealand are the major suppliers for China, the European sawmills are beginning to make their presence felt on the Chinese market.

According to the latest Eurostat figures, in 2013, EU's softwood logs exports to China more than tripled as compared to 2012. France has the lead, with a share of 27,4% of all European exports (and a 100% increase yoy), followed closely by Romania (27,2%) and Lithuania (21,9%).

Softwood timber exports almost tripled as well, with Finland, Sweden and Germany accounting for almost 85% of the overall EU exports. Year-on-year, Finnish and Swedish softwood timber shipments to China more than doubled, meanwhile those from Germany rose 369%.

In 2013, the combined (softwood logs+s. timber) value of exports to China reached EUR 325 million, higher by EUR 206 million as compared to 2012.

EU- Softwood logs exports to China in EUR 2012 2013 Change in %
EU Total 36,380,740 117,002,410 222%
France 16,047,980 32,062,520 100%
Romania 11,092,650 31,827,500 187%
Lithuania 6,040,930 25,650,080 325%
Estonia 964,620 7,447,950 672%
UK - 6,543,480 %
EU-Others 2,234,560 13,470,880 503%

Source: Eurostat (HS 440320)

EU- Softwood timber exports to China in EUR 2012 2013 Change in %
EU Total 82,884,310 208,838,460 152%
Finland 31,668,100 76,911,071 143%
Sweden 23,791,010 55,703,569 134%
Germany 9,333,260 43,781,090 369%
Austria 9,704,340 10,028,560 3%
Romania 2,075,030 6,391,530 208%
EU-Others 6,312,570 16,022,640 154%

Source: Eurostat (HS 440710)

Wood and furniture in Spain up to 9,5% exports in 2013

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Spanish wood and furniture industry exports grew by 9,5% in 2013, with total sales worth EUR 2,770.5 million (2012: EUR 2,530.5), the Spanish Confederation of the Woodworking Industry - Confemadera Habitat reports.

Of the total sectoral exports, EUR 1603.2 million were sales of furniture, an increase of 12,3% over 2012. The remaining EUR 1167.3 million are sales corresponding to other subsector of wood, with a rise of 5,8%. Thus, the share of furniture export was 57,9%, while the remaining wood exports accounted for 42,1%.

Fiberboard was second in exports after furniture, with sales worth EUR 226.4 million in 2013, followed by timber (EUR 158.5 million) and plywood, veneer and laminated (EUR 147.2 million).

Galicia remains the leading wood and furniture exporting region of Spain with EUR 570.9 million, an increase of 10.6 % over 2012; followed by Valencia ( EUR 546.3 million, +21 %); Catalonia ( EUR 534.5 million, -3.9%), Andalusia ( EUR 210.3 million, +41.6%) and Madrid ( EUR 176.5 million, +17.6%).

France and Portugal continued to be the main destinations of Spanish wood products and furniture exports. France is the leader among buyers with EUR 627.4 million, a rise of 7.5%; followed by Portugal, with EUR 491.4 million (+9.3% ); UK, with EUR 179.8 million (+15.4 %); Germany ( EUR 154.1 million, +6.3 % ); and Italy ( EUR 112.1 million, +2.8 %). From the first seven destinations of Spanish exports, six of them are from the European Union and absorb most of the domestic sales of the wood-furniture sector, with a share of 60.4 %.

Regarding imports of the sector in 2013, they have fallen by 2.1%, to EUR 2,983.6 million as compared to EUR 3046.7 million in 2012. Though in absolute terms the imports exceed the exports, it should be taken into account that over 18% of the wood products and furniture sector imports are for wood raw -material such as: lumber, rough and sheets for veneering and plywood, which is used for the production of semi-wooden floors, structures, panels, frames, etc.

Two more EUTR Monitoring Organizations named by the E.C.

Posted on by GWMI Admin

After recognizing ConLegno and Nepcon as Monitoring Organizations (MO) back in August 2013, at the end of March, the European Commission added two new MOs with regards to EU Regulation 995/2010 (EU Timber Regulation). The two newly recognized Organizations are Control Union (from the Netherlands) and Bureau Veritas: both are authorized to operate in all the EU Member States.

With Control Union and Bureau Veritas the total number of of EUTR Monitoring Organizations rises up to four.

Switzerland faces third consecutive price decrease of wood pellets in April

Posted on by GWMI Admin

In April the average price of pellets in Switzerland has registered another significant decrease, confirming a downward trend which started in February. Thus, if in January the average price for a tonne of pellets was CHF 420,3 (EUR 345,19), now in April the price is CHF 409,5 (EUR 336,32). On a monthly basis, the price has declined by 2,1 percent over March. However, as compared to April 2013, the pellet price is slightly higher by 1,13 percent.
In April 2014, for orders of 3 tonnes, the current price is CHF 423.59/t (EUR 347,89); for 5 tonnes purchases CHF 407.87/t (EUR 334.98), while for larger quantities (8 t) one can pay CHF 396.99/t (EUR 326.04).
 

Kronospan worries that biomass expansion is increasing timber prices

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Austrian wood panel company, Kronospan, has launched a warning over the future of its business in the United Kingdom, with fears that biomass plants are fueling increases in timber prices, the Daily Post reported.

Representatives of the company, quoted by the British newspaper, say that the UK has seen a 10% surge in timber prices only in the first quarter of this year, with a price doubling recorded in the past 10 years. Thus, Kronospan’s plant in Chirk, Wales has already reduced exports, as market conditions are fierce and the competition with Central and Eastern Europe is very strong.

There are also concerns that the UK market will now be invaded by cheaper imports, which could ruin Kronospan’s business. The company is asking the UK government to act against subsidies on biomass, which are the main cause for the high wood demand and the price increases.

Chris Emery, timber procurement executive at Kronospan, said to the Daily Post: ‘This is a big concern, certainly at managerial level there is real concern over this. We have seen a 10% increase in the price of roundwood since the start of the year and the price has doubled over 10 years. The recent rises have thrown us because it had been a mild winter and we did not expect the biomass demand to rise so strongly. It is the small scale operations that are a concern because it is hard to keep track on them. We need to speak out about this now and Government needs to take action, we need action to keep it viable.’

Chris Emery stated that the combination of biomass and growing building market are now causing the problem. ‘This (price rise) is because of the increase in demand for timber for use in biomass because of the subsidies that have been on offer. This has been around over a number of years but it is now that we are seeing sharp increases in prices because of the upturn in the housing market. We have had to be more efficient and at present we can still compete on price in the UK market but over the last two to three years our export market has gone because we could not compete. This had been 10% of our business. We are still holding up in the Uk but there are concerns over imports, especially from Eastern Europe where costs are lower. It would only take a change in the exchange rate to see an influx of imports to the UK. That would have a major impact on us’ Mr. Emery added.

Kronospan thinks that the subsidies for biomass should be given under different conditions, only for end-of-life wood, wood that can’t be used for anything else.

Softwood logs imported to Sweden reached a 10-year high

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The forest industry in Sweden imported about ten percent of its wood raw-material needs in 2013, according to the Wood Resource Quarterly. Softwood log imports reached a ten-year high, while there has been a decline in the importation of hardwood logs. The major log suppliers to Sweden in 2013 were Latvia, Norway, Estonia and Finland.

Sweden is the fourth largest importer of logs in the world, despite having forests that cover almost two-thirds of the country. The import volumes have been growing steadily the past five years, with 2013 imports being almost 60 percent higher than five years ago. Softwood logs make up all of the increase in imports and Wood Resource Quarterly (WRQ) reported that 2013 had the highest softwood log import volume over the past ten years. In a contrary development, the importation of hardwood logs in 2013 declined, with import volumes being down about 16 percent from the previous year. As a matter of fact, imports last year fell to the second lowest level in 15 years, with Latvia reducing shipments the most.

During the past few years, between 10-15% of the imported log volume have been sawlogs destined for sawmills in the Southern part of Sweden, of which most have been sourced in Norway.

Almost 90% of imported logs in 2013 were pulplogs, evenly split between softwood and hardwood. The two major supplying countries have been Norway (softwood) and Latvia (softwood and hardwood), with other neighboring countries including Finland, Russia and Estonia following far behind.

The total softwood log shipments from Norway to Sweden, including sawlogs and pulpwood, reached just over two million m3 in 2013, up from 1.4 million m3 in 2012 and only 709,000 m3 in 2011. The major reason for this dramatic increase was that the Swedish pulp company Sodra permanently closed its pulpmill in Tofte, Norway last summer. As a consequence, private forest owners in the region have increased their log shipments to pulp mills in central Sweden. This has had an impact on log flows and prices in the local markets in Sweden and there has been no shortage of wood fiber in this part of the country.

Imported wood-raw material for the Swedish forest industry is not just a marginal business but quite important for many manufacturers of lumber and pulp. The past two years, imported logs have accounted for about ten percent of the total log consumption in the country, this was up from 7.5 percent in 2009.

Malaysian industry disappointed by low level of demand for certified wood

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The MTCC has released data for the last four months of 2013 on exports of wood products certified through the Malaysian Timber Certificat ion System (MTCS).

Product Sep-13 Oct-2013 Nov-13 Dec-13
Sawntimber 9,535 12,027 6,159 9,842
Plywood 4,251 5,746 3,346 3,895
Mouldings 1,574 1,970 1,921 1,621
total cu.m 15,360 19,743 11,462 15,358

Source: MTCC

In the last four months of 2013, Malaysia exported 62,215 cu.m of certified timber products. The highest volume went to Netherlands with 19,313 cu.m (31% of total), United kingdom 9,977 cu.m (16%) and Germany 4,727 cu.m (7.6%).

The MTCS, operated by MTCC, is endorsed by the Programme for the Endorsement of Forest Certification (PEFC). Industry analysts say that, despite the development and progress of timber certification in Malaysia, the purchase of certified wood products has been disappointing.

This weak demand for certified timber products is thought to be discouraging companies from applying CoC certification. The most commonly heard complaint from industry is that demand for certified products is not expanding and even when a price premium can be secured this is insufficient to offset the additional expenses incurred.

Kingfisher wants to buy French rival, Mr Bricolage

Posted on by GWMI Admin

Kingfisher, the DIY chain with operations in the UK and France, is in talks to acquire Mr Bricolage, a French rival, for €275m, including debt.

Under the terms of the proposed transaction, Kingfisher would acquire 41.9% of the share capital of Mr Bricolage from ANPF (which is held by franchisees) and 26.2% from the Tabur Family at an agreed price per share of €15. Subsequently, a mandatory offer to acquire the shares held by the minority shareholders at the same price, in accordance with applicable law, would be filed.

At this level and including the level of net debt as at 31 December 2013 the overall enterprise value is around €275 million. As part of the transaction, Mr Bricolage’s existing franchisee and affiliate network would be maintained and its members offered improved commercial terms. The whole process is likely to take until the end of Kingfisher’s 2014/15 financial year.

Parent plant St. Johann to be upgraded by EGGER

Posted on by GWMI Admin

In order to continue expanding its strong position on the international stage, EGGER is undertaking three major construction projects: The parent plant in St. Johann in Tirol is being expanded with a new short-cycle press, a high bay racking warehouse and an office building for a total of approximately EUR 50 million.

The new short-cycle press, which will support the production of deep textures, and especially the synchronised pore that is in high demand, commenced operation in December of 2013. Construction work on a fully-automated central high bay racking warehouse for rawboard began in the spring of 2014. It is being built on an area of 4,500 m2 (48,438 square feet) and will have 3,040 storage spaces for up to 32,000m³ (1,130,000 cubic feet) of wood-based materials.

The planned office and administration building is being built on a 10,000 m2 (107,639 square feet) plot at the front of the plant premises. With the first stage of expansion, it will be home to more than 250 employees and the plant cafeteria.

West Fraser expands lumber capacity in U.S. South and Western Canada

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West Fraser continues to grow its lumber business in the U.S. South and in western Canada. The company announced that it has entered into an agreement to acquire the Bibler Brothers Lumber sawmill and lumber manufacturing operations located in Russellville, Arkansas. The company also announced the successful completion of the acquisition of Buchanan Lumber sawmill located in High Prairie, Alberta from Gordon Buchanan Enterprises Ltd.

The Alberta-based Buchanan Lumber sawmill has an annual capacity of approximately 110 million board feet of lumber (259,000 cbm). West Fraser plans to invest additional capital in the mill to expand the annual production capacity to approximately 175 million board feet (413,000 cbm). The acquisition includes timber rights having an annual allowable harvest of approximately 430,000 cubic metres of coniferous timber and 21,000 cubic metres of deciduous timber.

The Arkansas-based Bibler Brothers Lumber sawmill produced approximately 136 million board feet of lumber in 2013 (321,000 cbm) and in excess of 160 million board feet (377,000) in 2005. Russellville is located in western Arkansas and is approximately 80 miles from West Fraser's recently-acquired sawmill in Mansfield, Arkansas. Completion of the Bibler Brothers Lumber acquisition is subject to satisfaction of certain conditions which are expected to be satisfied before the end of April.

Price increase for KVH in Germany, after March pressure

Posted on by GWMI Admin

Despite attractive construction prices in Germany, KVH hasn’t gained momentum in the first quarter. As different German manufacturers report, KVH has been priced under pressure after the new year. Particularly in March, after price increases were already announced for 1 April. In fact, the prices plummeted. In auction sales, it was sold clearly at prices under EUR 300/cbm.
Some of the reasons for the price drop was that KVH was overproduced, in view of the high expectations that appeared during the mild winter. Now it turns out that many building sites did not progress yet so far with the above ground construction, that they need wood. Meanwhile, the situation looks significantly better. Since the last week of March, a demand assignment was to be felt.
On 1 April, the industry has / implemented price increases of 10-15 EUR cbm. Too big is still the oversupply. Following the increase KVH (6th strength) costs now EUR 310-315/cbm. Assortments in NSi list were traded with EUR 330-335/cbm, for small amounts also with EUR 350/cbm. Thus, the price level at the end of 2013 was reached again and partly slightly exceeded.
KVH price in EUR/cmb; free of all charges

Strength Price €/cbm
6th 310-315
8th 310-320
10th 315-325
12th 325-330
14th 330-335
List 330-335

China: Diversification of sawnwood import countries intensifies

Posted on by GWMI Admin

Sawnwood imports totalled 24.04 million cu.m in 2013 and were valued at US$830 million in 2013, up 16% in volume and 24% in value on the previous year. The average price for imported sawnwood was US$284 per cubic metre. 2013 imports of sawnwood came from a number of countries. Russia (29%), Canada (28%) and the US (11%). The pace of sawnwood imports from Sweden, Finland, Chile, Philippines and Thailand was significantly higher than in 2012.
Top 10 sawnwood suppliers to China in 2013

Import volume (million cu.m) % of total imports Average price (US$/cu.m)
Total China 24.02 100 284
Russia 7.03 29.26 194
Canada 6.86 28.58 226
US 2.58 11 417
Thailand 1.9 8 455
Chile 0.82 3.43 256
Philippines 0.7 2.93 138
New Zealand 0.5 2.08 293
Finland 0.4 1.67 257
Sweden 0.369 1.54 250
Indonesia 0.368 1.53 439
Top ten 21.527 90.02

Stable roundwood prices in Estonia

Posted on by GWMI Admin

From January to February, the roundwood prices in Estonia have changed only slightly. With slight up or down movements, the prices tend to the levels of January. The biggest changes concern birch veneer and pulpwood assortments: birch venner has become more expensive by about EUR 1/per cubic metre, while pulpwood ranges prices have decreased by 30 up to almost 80 cents/per cbm.

As compared to the same month of last year, with the exception of birch veneer and birch pulpwood, all assortments are more expensive by between 10% to 20%. Poplar pulpwood price, however, has increased above the average with almost 27%.

Average Prices in State-Owned Forests Free Alongside Forest Road
EUR / cbm without VAT		  Feb. '13 Jan. '14 Feb. '14 Change
Feb. '13
to Feb. '14
Pine 61.73 68.33 68.41 10,82%
Pine d<18cm 50.86 57.77 57.32 12,70%
Spruce 58.10 67.26 67.04 15,39%
Spruce  d<18cm 46.38 53.01 53.27 14,86%
Birch (veneer) 117.27 99.25 100.27 -14,50%
Birch 58.08 59.03 59.13 1,81%
Poplar 32.34 34.01 34.34 6,18%
Pine (pulpwood) 27.13 32.12 31.36 15,59%
Spruce (pulpwood) 25.90 31.19 30.48 17,68%
Birch (pulpwood) 32.68 27.39 27.10 -17,07%
Poplar (pulpwood) 14.62 19.00 18.55 26,88%

China stops logging in the Heilongjiang province

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The Heilongjiang province, located in north-east China has officially banned commercial logging of its natural forests as of Tuesday.

'Excessive logging over long periods have sharply reduced forest resources and downgraded quality of state forests in the province', said the chief of the state forestry administration, Zhao Shucong, at a press conference on Monday. Mr. Shucong added that in order 'to protect the ecosystem and insure sustainable development of forests, it is urgent that commercial logging be stopped'. 'The logging ban ends more than 100 years of excessive exploitation of forests,' the official concluded.

The Chinese government will support the local community affected by the logging ban by developing industries such as tourism and green agriculture.

The Heilongjiang province is home to 18.5 million hectares of state forest, the largest forestry area in China. Heilongjiang province's timber production accounts for more than one third of the national output. According to Chinese media, the ban applies to natural forests. However, it is not clear whether the entire province forests are affected, or only forests that are explicitly classified as natural forests.

Limited impact on the EU by EUTR

Posted on by GWMI Admin

While it‘s possible that some of the recent downturn in EU imports of tropical wood was due to legal uncertainty following implementation of the EUTR, other economic and commercial factors were probably much more significant drivers of trade during 2013. According to a recent analysis of the trade impact of EUTR by the European Timber Trade Federation:

Longer term trends are obscured by the overwhelming effect of the economic downturn and by supply problems due to capacity closures and diversion of wood fibre to other markets over recent years.

Furthermore, while EUTR has been enforceable since March 2013 in theory, it is still very early days in practice. Competent Authorities are already active in Denmark, UK, Germany, and the Netherlands. However the pace of implementation has been slower in France and southern and eastern Europe.

The EC process to formally recognise Monitoring Organisations is also taking time, with only two so far appointed - Conlegno in Italy and Nepcon with EU-wide coverage. Even in countries where Competent Authorities are act ive, building up the necessary capacity and knowledge required to provide advice and pursue successful prosecutions remains a challenge.

The real impact of EUTR will only become clearer as the EU economic recovery gathers pace and as more progress is made to develop enforcement capacity and impose sanctions.

Sonae sells two plants in France to Kronospan

Posted on by GWMI Admin

Sonae Indústria on Tuesday informed that, further to the announcement of 17 March, its indirect affiliate, Isoroy SAS, has today completed the sale to Kronospan of the businesses and assets relating to its Auxerre and Le Creusot plants located in France, including the transfer of the employees dedicated to those businesses. From now onward, the contribution of the aforementioned two plants will no longer be considered in Sonae Indústria group’s consolidated results. The value of the transaction was not disclosed.

2013 Top North American lumber producers

Posted on by GWMI Admin

The latest Wood Markets (WM) annual survey of the Top 20 North American softwood lumber producers shows the gains that the US and Canada had in 2013. As the lumber demand continued to increase in US key export markets, softwood lumber shipments surged an overall 5.1% up to 30.0 billion board feet (70,7 million cubic metres). Canadian production picked up from unsatisfactory levels in 2012, up to an increase of 4% and 23.5 billion bf (55,4 million cubic metres). Corporate acquisitions were again a big part of the story as the Canadian buying frenzy continued in the U.S. South – more than 25 mills have been purchased by Canadian firms in the South that all started in the mid-2000s, says the WM report.

The report underlines the fact that the top 20 Canadian companies managed to increase their market share of total Canadian lumber exports, from 79,8% in 2012 to 80,5% in 2013. Canfor has once again remained the top Canadian lumber producer with an output of 4.2 billion bf (or 9,91 million cbm), a 9% increase over 2012. West Fraser retained the second position with a total lumber production of 3,6 bbf (8,49 million cbm). Tolko and Resolute Forest Products were on the third and fourth, while Interfor gained two positions in one year up to the fifth place, due to production gains at its BC Interior SPF mills. All together, these five companies produced a total of 12,1 bbf (28,5 million cbm) or 51% of all Canadian lumber shipments.

The top 20 US sawmills production increased quite strongly: from 16,6 bbf (39,1 million cbm) in 2012, to 17,9 bbf (42,2 million cbm) in 2013, an 8,2% gain. Moreover, their market share of US production increased in the same period from 58% to 60%. The top five largest lumber producers in US were in order: Weyerhaeuser, Sierra Pacific, Georgia-Pacific, West Fraser and Hampton Affiliates. These five companies produced 10 bbf (23,5 mil. cbm) or 33% of the US total production. All regions in the US recorded production increases in 2013, with the US West leading the upsurge in output with a 6,1% gain; the US South registered a 5,1% increase.

Sawmill acquisitions were active in 2013, says the WM report, with one announced by Interfor (Tolleson Lumber) and West Fraser (Travis Lumber).

'With prospects of steady to stronger lumber demand and prices through most of 2014, there is persuasive evidence companies are increasing efforts to expand output by adding shifts, re-opening closed mills or buying sawmills (and expanding these!). More of this is expected for 2014, as sawmill companies continue to gear up for the potential of a lumber “super-cycle” that is expected as early as 2015 but more likely 2016' the report concludes.

CANADA TOP SOFTWOOD LUMBER PRODUCERS IN 2013 (Million BF)
Rank Company No. of Mills Production %Change
2012 2013
2012 2013
1 1 Canfor 14 3,857 4,207 9%
2 2 West Fraser 12 3,466 3,571 3%
3 3 Tolko 8 1,975 1,935 -2%
4 4 Resolute 16 1,442 1,480 3%
7 5 Interfor 5 826 872 6%
Total Top 5 55 4,3%
Total Top 20 106 4,9%
Total Canada 22,581 23,486 4.0%
Top 5 as a % of Canada Shipments 51,2% 51,4%
Top 20 as a % of Canada Shipments 79,8% 80,5%

Notes: Includes lumber produced only at primary sawmills and excludes U.S. production. (Source: Wood Markets)

USA TOP SOFTWOOD LUMBER PRODUCERS IN 2013 (Million BF)
Rank Company No. of Mills Production %Change
2012 2013
2012 2013
1 1 Weyerhaeuser 15 3,060 3,290 8%
2 2 Sierra Pacific 12 1,932 1,984 3%
5 3 Georgia-Pacific 16 1,182 1,602 36%
3 4 West Fraser 14 1,488 1,582 6%
4 5 Hampton 6 1,497 1,500 0%
Total Top 5 63  9,159 9,958 8,7%
Total Top 20 121  16,571 17,931 8,2%
Total US
 28,547 29,995 4.0%
Top 5 as a % of US Shipments 32,1% 33,2%
Top 20 as a % of US Shipments 58,0% 59,8%

Notes: Includes lumber produced only at primary sawmills and excludes all Canadian and offshore production. (Source: Wood Markets)  

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