Interfor announced that it has completed the acquisition of Tolleson Lumber Company of Perry, Georgia, from Ilim Timber Continental, SA, the company announced in a press release.
The acquisition of Tolleson's two sawmills in Perry and Preston and a remanufacturing facility in Perry makes now Interfor one of the five largest lumber producers in North America, and the largest in Georgia.
Total consideration paid by Interfor for Tolleson amounted to US$129.9 million in cash and retained liabilities plus 3.68 million of the company's class A subordinate voting shares.
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Interfor completes acquisition of Ilim Timber’s lumber company
Interfor announced that it has completed the acquisition of Tolleson Lumber Company of Perry, Georgia, from Ilim Timber Continental, SA, the company announced in a press release.
The acquisition of Tolleson's two sawmills in Perry and Preston and a remanufacturing facility in Perry makes now Interfor one of the five largest lumber producers in North America, and the largest in Georgia.
Total consideration paid by Interfor for Tolleson amounted to US$129.9 million in cash and retained liabilities plus 3.68 million of the company's class A subordinate voting shares.
Lithuanian roundwood more expensive
As compared to December 2013, all prices for roundwood in Lithuania have increased in Lithuania in the first month of 2014. The price increase varies by between EUR 2 and more than EUR 5,5/per cubic meter. The highest rise was registered in spruce sawlogs price (EUR +6,67/cbm) and pine sawlogs, which are more expensive by EUR 5,50/cbm than the previous month.
Year-on-year, in January, almost all prices for roundwood in Lithuania are higher. Pine and spruce sawlogs are more expensive by 9,5% and 14%, meanwhile pine and spruce pulpwood prices have increased by more than 20%. Only alder sawlogs and birch pulpwood prices have declined as compared to the same month of 2013.
Roadside prices of roundwood in state forests of Lithuania EUR/m³ under bark |
January 2013 | December 2013 | January 2014 | Change Jan./2013 to Jan./2014 |
| SAWLOGS | ||||
| Pine | 60,82 | 61,11 | 66,61 | 9,51% |
| Spruce | 63,14 | 65,45 | 72,12 | 14,2% |
| Birch | 65,74 | 61,40 | 65,16 | 0,88% |
| Alder | 54,16 | 49,81 | 51,26 | -5,35% |
| Small-sized softwood | 49,24 | 48,08 | 52,71 | 7,04% |
| PULPWOOD | ||||
| Pine | 25,78 | 28,96 | 31,86 | 23,5% |
| Spruce | 26,65 | 30,41 | 33,02 | 23,9% |
| Birch | 32,44 | 27,51 | 29,83 | -8,04% |
The above prices are collected from metla.fi
Russia: Lumber exports rise; log exports drop
The Russian log export tax that was implemented in 2007 resulted in a sharp decline of log exportation with the Russian share of globally traded logs falling from 44% in 2006 to 15% in 2013. During the same period, lumber exports have increased but shipments have not compensated for the decline in income from the log exports, according to the Wood Resource Quarterly.
In 2008, Russia’s president Putin decided to add a tax to logs exported from the country with the goal of reducing exportation of wood raw-material, encouraging investments in domestic processing in wood products, and increasing exports of lumber and plywood. The first objective has definitely been achieved.
When log export tariffs of 25% were implemented for softwood logs, all major trading partners reduced their reliance on Russian logs and diversified their log supply sources fairly swiftly. All-time high log exportation in 2006 and 2007 fell by about 30% the first year of the higher log export tax. By 2013, only one-third of the volume exported at the peak level six years ago was shipped to foreign markets. With the decline in log exports from Russia, the country is no longer the leading source of logs in the world.
In 2006, Russian softwood logs accounted for 44% of all logs traded in the world. By 2013, Russia had fallen behind both New Zealand and the US on the list of top log exporters in the world and Russian shipments only accounted for 15% of total global log trade.
When Russia joined the WTO in 2012, it was forced to take steps to reduce trade restrictions on export logs. This resulted in a lowering of the tariffs on softwood logs to between 13-15%. Even with these reductions, foreign log buyers have not rushed back to Russia to buy logs, and export volumes in 2013 were down four percent as compared to 2012.
The second goal of increasing lumber exports has also been reached, but this increase has been fairly limited and has not compensated in either volume or value for the dramatic reduction in log exports since 2007, according to WRQ. While the value of softwood log exports have fallen about two billion dollars in six years, softwood lumber export values have only gone up 300 million dollars. As a result, the total value of exported logs and lumber was 27% lower in 2013 than the year before the log export tax came into effect in 2007.
Ikea delivers strong market growth in China, Russia and US
The 2013 financial report for the Ikea Group, the world's largest furniture retailer, provides insights into the outlook for the international furniture sector. In the financial year 2013 (to 31st August 2013), Ikea's sales increased 3.1% to €27.9 billion and profit also increased by 3.1% to €3.3 billion. Market conditions continued to improve, reports the retailer, with strong growth in China, Russia and the US.
Ikea reports that "Consumer spending is improving in many countries. While the challenging economic situation may not be over, there are positive signs. Important consumer markets such as the US are coming back and Europe in general is starting to recover. Even some of the challenging markets in Southern Europe are showing good signs of activity.”
The Ikea Group claims to have gained market share in almost all markets. The largest markets were Germany, the US, France, Russia and Sweden. Ikea, which specialises in large volume sales of low priced furniture, suggests "this indicates that value for money is increasingly important".
The Ikea Group has an ambitious growth agenda, aiming for €50billion in sales by 2020. It states that the large emerging markets are important sources of future growth. In FY13, the Ikea Group opened two more stores in China – another step in expansion in the Chinese market.
Ikea's long-term focus is to "keep developing better products at lower prices, improving the shopping experience and becoming more accessible to our customers, for example through an improved service offer, e-commerce and continued expansion".
Switzerland: Price of wood pellets drops in March
In March, the average price of pellets in Switzerland has registered the second decrease since the beginning of the year. The current price stands at CHF 418.3/tonne (approximately EUR 343.35), a decline of almost 0,4% over February. However, as compared to the same month of 2013, the pellet price is 2,5% higher.
In March 2014, for orders of 3 tonnes, the current price is CHF 432.3/t (EUR 354.96); for 5 tonnes purchases CHF 418.31/t (EUR 342.04), while for larger quantities (8 t) one can pay CHF 407.57/t (EUR 333.07).
German woodworking machinery industry reports turnover decrease
The turnover of the German woodworking machinery industry in 2013 fell from the previous year by 5%, says VDMA (the German Woodworking Machinery Manufacturers' Association). Consequently, the production of stationary woodworking machines has decreased in value in 2012 from EUR 2.3 billion to EUR 2.2 billion in 2013.
Nevertheless, the industry reported an optimistic start for the year 2014. Order intake in the machine manufacturer were up by 15 % in the past year. 'We can look back at a marbled fiscal year. The business prospects for the suppliers of the wood and furniture industry, despite all the uncertainty, as currently in Ukraine, is positive. The investment in the high-tech world stands at a good level. Therefore, we expect an increase of up to 5% for our sub-sector in 2014,' said Bernhard Dirr, Managing Director of the VDMA.
The 2013 decline in exports of stationary woodworking machines is around 5%, down to EUR 1.7 billion. The largest decreases were recorded for exports to Asia and South America (the growth drivers in recent years). However, positive developments were recorded in deliveries to Europe and North America.
In 2013, for the second time in a row, Russia was the number one export market. Russian customers have purchased from German woodworking machines manufacturers products for a value of EUR 177 million. This corresponds to a decline of 11%. In second and third place, Russia is followed by China (EUR 153 million euro, -21%) and France ( EUR 125 million; + 5%). Pleasing was the continued good development for the U.S. market with an increase of 4%, says VDMA.
The negative trend for export growth in some markets such as Turkey, India and Russia, at least to the standard machine business worries the Association. Overall, the manufacturers expect in 2014, however, a noticeable upturn in exports. In Southern Europe the bottomed out market is likely to have passed, while in South America a market recovery is expected after two years of decline. 'For 2014, we are optimistic about the German woodworking machinery industry,' continued Mr. Dirr.
The imports of machines to Germany has increased in the past year 2013 by 8% up to a value of EUR 365 million. China is by far Germany's number one supplier country with a value of EUR 92 million (+2% yoy). On the second place is Italy with EUR 73 million (+17% yoy) and Austria with EUR 49 million (-3%).
Swedish softwood timber exports down
In 2013, the Swedish softwood timber exports have decreased as compared to 2012. In volume Swedish sawmills have exported 11.6 million cubic meters of spruce and pine timber in 2013. In 2012 there were about 11.8 million cubic meters, which means a decline of 2%. Morever, this 2013 decline comes after exports in 2012 increased by 1.6%. The volume exported in 2013 is therefore even lower than that of 2011.
In the second half of the year, exports have increased significantly. At mid-year the export volume was still 7% below over 2012. However, exports gradually recovered in the second half of 2013 and in December, a 12% increase was registered on a yearly basis.
The value of exports has increased slightly. In 2013, the average value of exports was 1876.50 SEK/cbm FOB (EUR 212.50). Last year the value was approximatelly 1860.40 SEK/cbm FOB (EUR 210.70). Again, there was a significant increase at the end of the year: in December, the average price was 1947.30 SEK/cbm FOB (EUR 220.50).
Swedish export destinations have recorded some major shifts in 2013. So much less than in recent years has been delivered to the Middle East and North Africa. Exports to France and Belgium fell sharply, while those to Germany have only slightly decreased. Shipments to Great Britain, Sweden's main export partner, have increased slightly. Most deliveries have risen to China and other Asian countries, but also to the United States. In Europe, besides the UK, only deliveries to Poland have registered a significant surge.
Swedish softwood timber exports
| Country | I-XII 2012 (1.000 cbm) |
I-XII 2013 (1.000 cbm) |
Change in % |
| UK | 2262.3 | 2316.3 | 2,39% |
| Egypt | 1342.9 | 1145.4 | -14,71% |
| Germany | 1099.0 | 1036.8 | -5,66% |
| Japan | 792.9 | 950.9 | 19,33% |
| Norway | 963.0 | 939.8 | -2,41% |
| Denmark | 760.9 | 738.0 | -3,01% |
| Netherlands | 804.3 | 734.1 | -8,73% |
| Algeria | 561.8 | 545.6 | -2,88% |
| China | 134.1 | 410.3 | 205.97% |
| Morocco | 416.0 | 386.7 | -7,04% |
| France | 465.6 | 371.6 | -20,19% |
| Saudi Arabia | 435.4 | 357.5 | -17,89% |
| Belgium | 303.2 | 258.3 | -14,81% |
| Poland | 123.0 | 150.0 | 21,95% |
Austria plans consumption doubling of wood pellets
Austria has the second highest pellet consumption per capita worldwide. Statistically, every Austrian consumes 95 kg of wood pellets a year. Only in Estonia, the per capita consumption is higher.
The Austrian trade association proPellets Austria presented these days its annual report for 2013. 10,500 new pellet heating systems were installed last year, an increase of ten percent. During the same period, production rose from 890,000 to around 960,000 tonnes.
Association's President Dr. Christian Rakos expects for the first time this year a production of over one million tons. 'Austria is in consumption, but also in production a top country,' says Christian Rakos. If the successful development of the pellet sector is set to continue in Austria, the pellet consumption could double by 2020.
The 2013 newly installed pellet boilers are primarily in single-family homes for use or to replace the old oil heaters. Pellet consumption in Austria rose in 2013 to about 880,000 tons. The industry's association has calculated that all pellet heaters in Austria together are thus saving around 178 million euros compared to fuel oil heaters. For a single household with an annual demand of about six tons, the savings are of about 1,200 euros .
Also internationally says Rakos, the pellet industry has become a beacon of hope for the use of renewable energies. Worldwide consumption of pellets has grown to now 22.5 million tonnes per year.
One of the reasons why Austria takes a leading position in the international pellet market is because the Alpine Republic has set standards in the pellet industry and still continues so. Domestic manufacturers constantly shine with innovation. The Austrian pellet boiler manufacturers export up to 80 percent of their production abroad.
Furniture production grows rapidly in Romania and Poland
Production value in the EU13 group of Eastern European countries increased 50% between 2002 and 2012. This region now accounts for 20% of total EU production value. Production growth has been particularly rapid in Poland, Romania, Lithuania and Slovakia, ITTO reported.
Furniture production in this region has always been more export-oriented than in Western Europe. By combining 22 relatively cheap labour with proximity to European customers, furniture production in these countries has risen alongside the on-going process of EU eastern expansion and market integration.
Poland is by far the leading furniture exporter in Eastern Europe with over €6 billion in 2012. Exports accounted for as much as 79% of Poland's production value in 2012. Poland is also increasingly influential in the global furniture industry. In 2012, it was the world's 7th largest manufacturer (up from 12th in 2002) and the 4th largest exporter (up from 5th in 2002) after China, Germany and Italy. As in Italy, production in Poland is highly fragmented.
There are almost 24,000 furniture manufacturers in the country mainly concentrated in the Wielkopolskie, Mazowieckie and Malopolskie regions. Romania is the second largest furniture producer in the EU13 group of countries, although production of €1.5 billion in 2012 was only a quarter of that in Poland. Furniture production in Romania expanded at an average annual rate of 6.3% between 2002 and 2012. Exports account for 88% of production and have driven this rapid growth.
The Czech Republic is the third largest producer of furniture in the EU13, with production value of €1.4 billion in 2012. The country has around 500 producers, mostly locally owned with lower levels of foreign investment than in other parts of the region. Lithuania is now the fourth largest furniture manufacturer in Eastern Europe, with production value rising by 400% between 2002 and 2012, notably due to large investments by the Swedish giant Ikea.
Estonia: Roundwood prices sharply up
Almost all assortments of roundwood in Estonia have become significantly more expensive in January 2014 on a yearly basis. However, there are some exceptions: birch veneer is far cheaper than a year ago, while birch and aspen pulpwood have registered price declines up to -7%. For the rest, prices have seriously increased: spruce logs are more than 16% up, pine logs prices surged more than 8%, while aspen logs rose almost 7%. Pine and spruce pulpwood have reached a price increase close to 20%.
As compared to December 2013, Estonian prices for roundwood recorded some discrepancies. Prices for logs are stable (with minor increases or decreases), except birch veneer which has lost more than EUR 10 per cubic meter. Pulpwood prices surged within a range of EUR 0,18 to EUR 4,60 for aspen pulpwood.
Roadside prices of roundwood in state forests of Estonia (EUR/m³ u.b.) |
January 2013 | December 2013 | January 2014 | Change Jan.'12 to '13 |
| Logs | ||||
| Pine | 61.32 | 66.36 | 66.33 | 8,17% |
| Spruce | 57.75 | 65.99 | 67.26 | 16,46% |
| Birch | 57.38 | 59.24 | 59.03 | 2,87% |
| Birch veneer | 115.02 | 109.36 | 99.25 | -13,71% |
| Aspen | 32.11 | - | 34.01 | 5,91% |
| Small logs (d<18 cm) | ||||
| Pine | 50.10 | 55.83 | 57.77 | 15,3% |
| Spruce | 46.98 | 51.65 | 53.01 | 12,83% |
| Birch | - | - | - | |
| Pulpwood | ||||
| Pine | 26.85 | 29.25 | 32.12 | 19,62% |
| Spruce | 26.27 | 28.39 | 31.19 | 18,72% |
| Coniferous | - | - | - | |
| Birch | 33.08 | 25.99 | 27.39 | -7,2% |
| Aspen | 19.04 | 14.40 | 19.00 | -0,21% |
|
Fuelwood |
19.74 | 19.28 | 19.46 | -1,41% |
The above prices are collected from metla.fi
Rolpin bought by Japanese plywood manufacturer Nankai
The French daily Sud-Ouest confirmed that the Japanese Nankai Plywood has acquired the French panel manufacturer Rolpin. The confirmation originally came on Monday morning from the Commercial Court of Mont-de-Marsan, France.
The Japanese company wants to invest EUR 8 million in the next three years, with EUR 5,7 million in the first two, to restore industrial facilities that have become obsolete, and in adddition plans to launch two new production lines.
Nankai is primarily interested into a breakthrough on the European market, where it is not yet present. It’s main focus will be on the French market which represents 50% of its business aims, both in production and export. The new company will change its name into NP Rolpin.
In terms of production, Nankai Plywood wants to increase the current production volume from 35,000 m3 to 55,000 m3 in the following three years, and may rehire dismissed workers if the business grows as expected, says Sud-Ouest daily.
Rolpin has a history of more than 40 years in producing maritime pine plywood and phenolic resins and impregnated papers. Rolpin has 4 sites in different regions of France. Rolpin has been recently struggling with financial and insolvency issues.
Nankai Plywood Co., Ltd. operates in the hardwood veneer and plywood sector and has an annual turnover of approximately US$ 130 million.
Drax plans another 2 mil. tons wood pellet capacity
In its 2013 financial report the Drax Group announced earnings ahead of expectations and an important progress in the process of coal to biomass conversion plan. Moreover, 4 million metric tons of pellets have already been contracted for 2014 and the company’s new pellet facilities in the US are ongoing according to plans.
Drax has four coal units in the UK, which are under a biomass conversion process. The first one was successfully converted back in April 2013, and now delivers 600 MW of energy. The remaining three coal units conversion is highly dependent on the UK government’s contract of proposal (CFD), the company stated.
Drax hopes that in the third quarter of 2015 the second unit will run fully on biomass and the third by the end of 2016. Also plans for the fourth unit conversion are advancing.
However, such a large-scale conversion plan needs extra-capacity. Thus, Dorothy Thompson, CEO of Drax, announced that the company seeks options to develop an additional pellet capacity up to 2 million metric tons, mainly in the US, but UK pellet facilities are also taken under consideration.
Kronospan plans OSB plant in Poland
Kronospan is going to build a new OSB plant in Poland and also plans to set up a research and development center to strengthen its operations in the Katowicka region, WBPI (Wood Based Panels International) reported.
The OSB plant will be build near an already operating Kronospan facility in Strzelce Opolskie. Kronospan’s investment is expected to reach PLN 432 million (EUR 102,9 million), from which 29% of the overall amount is covered by a grant approved by the European Commission in April 2013 and contracted from the EU’s Regional Development Fund.
The Austrian company’s new OSB plant will create 200 new jobs, and moreover a spokeperson of the company says that ‘if everything goes according to plans, production will be launched in 2015’.
Kronospan owns in Poland facilities in Szczecinek, Szczecin, Mielec, Dobroszyce, Rudawa, Pustków and Poznan. The company's storage facilities are located in its two Polish plants in Strzelce Opolskie and Mielec, says the WBPI report.
Regarding the R&D center, Kronospan will establish a collaboration with the Wood Technology Institute (Instytut Technologii Drewna), a research institute based in Poznan, Poland. The R&D center has the purpose to strategically back-up Kronospan’s operations in a number of markets.
Chinese wood products increase market share in the UK
The new Statistics Digest issued by the UK Furniture Industry Research Association (FIRA) at the end of 2013 suggests a small recovery for furniture manufacturing in the UK. However the sector continues to suffer from loss of market share to Chinese product in the domestic market and poor export market performance, ITTO reported.
The report indicates that the UK furniture sector manufactured £6.5 billion of product in 2012. The significance of imported furniture is reflected by the fact that, at between £4.3 and £4.5 billion, it comprises 40% of the home market.
UK furniture exports, however, have remained relatively static for many years, and struggle to reach £1 billion each year. There were 6131 furniture manufacturers in the UK in 2012. This number has changed little in recent years. The industry is dominated by micro-businesses and SMEs, with only 260 companies (4%) operating at turnovers in excess of £5 million in 2012. 83% of companies turned over less than £1 million.
A high proportion of UK furniture companies are extremely small. 58% have annual turnover of less than £250,000. Furniture manufacturing is quite evenly spread around the UK, although there is a higher concentration in London and the South-east which together account for 24% of all UK furniture manufacturers.
Total imports of furniture into the UK decreased from £4.5 billion in 2010 to £4.3 billion in 2011 but then increased again to £4.5 billion in 2012. The largest external supplier was China which accounted for 33% of import value in 2012.
Other major suppliers are Italy, accounting for 10% of import value in 2012, and Germany which supplied 9%. UK furniture exports increased from £754 million in 2009, to £993m in 2011, but 2012 saw a reverse in this trend, with exports falling slightly to £946 million.
The UK has traditionally targeted its exports at the Republic of Ireland and the USA and this continued to be the case in 2012 (16% and 13% respectively). Trade with leading European nations such as Germany, France, the Netherlands and Belgium was the other main source of income from exports.
The Statistics Digest also explores trends in the wider UK economy. Key points include:
- Total consumer expenditure in the UK increased by just over 2% between 2009 and 2012 to over £920 billion.
- Total lending to consumers in the UK has been increasing slowly. Between 2009 and 2012, total lending increased by £23 billion to £1475 billion.
- However total "unsecured" lending (i.e. excluding mortgages) of £210 billion in 2012 was much lower than its peak of £238 billion in September 2008.
- There was a slight upward trend in UK housing starts between 2008 and 2011 followed by a slight downturn in 2012. Preliminary indications are that housing starts increased again in 2013.
- While the total number of UK property transactions gradually increased over the 2009 to 2012 period (by 9%), there was a significant rise of over 5% between 2011 and 2012. Preliminary data suggests the rising trend continued in 2013.
FIRA concludes, based on their statistical analysis and other anecdotal evidence, that furniture consumption in the UK is recovering slowly.
Consumers are becoming willing to borrow and spend more money, and housing starts and transactions are up. However the market remains well below the pre-2008 level and is unlikely to grow rapidly.
RusForest to sell sawmill and harvesting company in Eastern Siberia
RusForest AB, a Swedish forestry company with operations in Russia, today announced the sale of the non-core Boguchany sawmill in Eastern Siberia for $8.0 million. The company has also agreed to sell the related Boguchany harvesting company for $5.8 million.
After repayment of the Boguchany harvesting and sawmilling debts, RusForest expects to receive a total net amount of $4.0 million in cash.
RusForest has sold the Boguchany sawmill, Boguchansky LPK, in the Krasnoyarsk region for $8.0 million. The Boguchany sawmill has an annual capacity of 120,000 cubic meters of sawnwood.
RusForest has also signed a Memorandum of Understanding to sell the related Boguchany harvesting company, RusForest Angara LLC, to the same buyer for $5.8 million. The harvesting company holds forestry leases with 748,400 cubic meters of annual allowable cut (“AAC”). The sale of the harvesting company is expected to close on or around September 30, 2014. The net cash received by RusForest after repayment of the harvesting company’s debts is expected to be approximately $2.5 million.
Following the sale, RusForest has total sawmilling capacity of 210,000 cubic meters of sawnwood and forestry leases with approximately 2.6 million cubic meters of AAC.
Canfor to sell sawmill
Canfor Corporation announced that it has entered into a letter of intent with Groupe Lebel Inc. to sell the Daaquam sawmill located in Saint-Just-de-Bretenieres, Quebec. The transaction is expected to close at the end of March, 2014 and is subject to customary closing conditions, including the execution of a formal agreement. The Daaquam mill produced 120 million board feet of lumber (approximately 283,000 cubic meters) in 2013.
Don Kayne, CEO of Canfor said, "Daaquam was sold because it was not core to our Western Canadian operations. Groupe Lebel is a well respected company and Daaquam is a good strategic fit for it. We wish Groupe Lebel and all the employees of the Daaquam mill good luck in the future."
The proceeds of sale of the Daaquam sawmill and working capital combined with the sale of other associated properties related to Daaquam to other third parties are expected to amount to approximately $25 million.
Recovery for the Italian woodworking machinery industry
The fourth quarter 2013 consolidated the moderate trend improvement recorded in previous quarters. Once again, the trend differs between foreign markets (expanding) and domestic market (shrinking). A positive element is improved confidence, suggesting that 2014 might be a better year after so many years with a declining trend. However, it is still evident that, to achieve significant structural growth, domestic consumption must necessarily expand. Such remarks emerge from the trend survey carried out by Acimall's Studies office, based on a statistic sample that represents the entire industry of wood and wood-based materials technology.
In the last three months of 2013, the Italian industry achieved a 4.8 percent increase compared to the same period of the previous year. Foreign orders grew by 7.3 percent, while the domestic market decreased by 5.7 percent. The book of orders is at 2.2 months, while prices have been growing by 1.0 percent since the beginning of the year. In the October-December 2013 period, turnover increased (plus 0.4 percent versus the same period in 2012).
Based on the indications of the sample companies, the quality survey gave the following results: 36 percent indicated a positive production trend, 41 percent stable and 23 percent decreasing. Employment is considered stationary by 91 percent of the sample and falling by the remaining 9 percent. Available stocks are stationary according to 55 percent, decreasing according to 41 percent and growing according to the remaining 4 percent.
The forecast survey outlines possible short-term industry trends. There is moderate optimism about foreign markets, supported by order figures. The attitude towards Italian customers is wait-and-see: foreign orders will record growth in the next quarter according to 36 percent of the sample, while they are expected to stay at the same level according to 59 percent. The remaining 5 percent expects a drop (balance is plus 31).
The outlook on the domestic market indicates a decline according to 13 percent of the sample, while 73 percent expect domestic sales to remain stable. 14 percent of companies predict short-term growth (balance is plus 1).
China: Record logs&lumber imports
Importation of logs and lumber to China reached a new record in 2013 with lumber imports being up 19% and log imports increasing 23% from 2012, as reported in the Wood Resource Quarterly. North America, Russia and New Zealand were the major supplying countries, but Sweden, Finland, Ukraine, Chile and Australia saw the biggest increases in market share.
China’s importation of softwood lumber was 19 percent higher in 2013 than in 2012, reaching a new record high. The unprecedented increase in lumber shipments to the Chinese market that began in 2008 is continuing. In 2008, the country imported 3.6 million m3 of softwood lumber valued at 700 million dollars, according to the Wood Resource Quarterly (WRQ).
Two years later, in 2010, the volume had increased to 9.4 million m3 and in 2013, China imported close to 17 million m3 of lumber, valued at a bit over 3.6 billion dollars. Canada and Russia are the two major suppliers of lumber to China, with Canada having overtaken Russia as the largest supplier in 2010. Together, these two countries supplied almost 80 percent of all imports. However, this year Europe, Russia, Chile and New Zealand have all increased their shipments to China at a higher pace than has Canada. Sweden, for example, more than tripled its export volume from 2012 to 2013 to reach 370,000 m3, or just over two percent of the import volume last year.
This trend, where countries that just a few years ago were virtually non-existent in the Chinese market are now expanding is likely to continue in the coming years both because China’s continued hunger for more wood and because Canada is not likely to increase exports much more than the levels seen over the past few years.
Importation of softwood logs to China really took off during the second half of 2013. In the 1H/13, import volumes were about 14.8 million m3, and in the 2H/13, China imported 18.1 million m3, an increase of 23 percent in just six months, making 2013 a record year for Chinese log imports. The total value of imported logs reached just over five billion dollars. During the past year, all major log suppliers to China increased their shipments except Russia, which in 2013 shipped the lowest volume since 2004. New Zealand shipments were up by 32 % year-over-year, the US increased volumes by 55 % and interestingly, Ukraine, which just a few years ago did not export any logs to China, shipped 1.4 million m3 in 2013, a tripling from the previous year.
With record shipments of logs and lumber from North America to China during 2013, it wi ll be very interesting to see if Chinese wood buyers can continue to increase their imports from the US and Canada in 2014 and 2015 when demand for lumber is likely to go up in the US market.
China: Record logs&lumber imports
Importation of logs and lumber to China reached a new record in 2013 with lumber imports being up 19% and log imports increasing 23% from 2012, as reported in the Wood Resource Quarterly. North America, Russia and New Zealand were the major supplying countries, but Sweden, Finland, Ukraine, Chile and Australia saw the biggest increases in market share.
China’s importation of softwood lumber was 19 percent higher in 2013 than in 2012, reaching a new record high. The unprecedented increase in lumber shipments to the Chinese market that began in 2008 is continuing. In 2008, the country imported 3.6 million m3 of softwood lumber valued at 700 million dollars, according to the Wood Resource Quarterly (WRQ).
Two years later, in 2010, the volume had increased to 9.4 million m3 and in 2013, China imported close to 17 million m3 of lumber, valued at a bit over 3.6 billion dollars. Canada and Russia are the two major suppliers of lumber to China, with Canada having overtaken Russia as the largest supplier in 2010. Together, these two countries supplied almost 80 percent of all imports. However, this year Europe, Russia, Chile and New Zealand have all increased their shipments to China at a higher pace than has Canada. Sweden, for example, more than tripled its export volume from 2012 to 2013 to reach 370,000 m3, or just over two percent of the import volume last year.
This trend, where countries that just a few years ago were virtually non-existent in the Chinese market are now expanding is likely to continue in the coming years both because China’s continued hunger for more wood and because Canada is not likely to increase exports much more than the levels seen over the past few years.
Importation of softwood logs to China really took off during the second half of 2013. In the 1H/13, import volumes were about 14.8 million m3, and in the 2H/13, China imported 18.1 million m3, an increase of 23 percent in just six months, making 2013 a record year for Chinese log imports. The total value of imported logs reached just over five billion dollars. During the past year, all major log suppliers to China increased their shipments except Russia, which in 2013 shipped the lowest volume since 2004. New Zealand shipments were up by 32 % year-over-year, the US increased volumes by 55 % and interestingly, Ukraine, which just a few years ago did not export any logs to China, shipped 1.4 million m3 in 2013, a tripling from the previous year.
With record shipments of logs and lumber from North America to China during 2013, it wi ll be very interesting to see if Chinese wood buyers can continue to increase their imports from the US and Canada in 2014 and 2015 when demand for lumber is likely to go up in the US market.
