Timberland Invest...
Follow
Find tag "trade"
59.6K views | +24 today
Timberland Investment
Timber Industry | Deals & Transactions | Investment Rationale | Financial Performance | Investors | Asset Managers
Curated by Sam Radcliffe
Your new post is loading...
Your new post is loading...
Scooped by Sam Radcliffe
Scoop.it!

Canada, U.S. at loggerheads again over lumber

Canada, U.S. at loggerheads again over lumber | Timberland Investment | Scoop.it
With less than a year to go until the Canada-U.S. Softwood Lumber Agreement expires, lines are being drawn on both sides of the border over the future of lumber trade between the two countries.
Canadian producers say they want to extend the agreement, which has brought an uneasy peace to the decades-long lumber war since it was signed in 2006, but their U.S. counterparts say they won’t sign on again.
The U.S. Lumber Coalition, a lobby group representing American lumber companies and timber owners, said last week it’s not going to renew the agreement when it expires next October. It has expressed its anti-deal position to the U.S. government but it has yet to say publicly what it intends to do.
more...
No comment yet.
Scooped by Sam Radcliffe
Scoop.it!

Record volume of Southern Pine lumber exports to China

Record volume of Southern Pine lumber exports to China | Timberland Investment | Scoop.it

Exports of Southern Pine lumber to China are soaring, thanks to promotional efforts funded by the USDA’s Market Access Program (MAP).


Southern Pine lumber exports to China are expected to reach $54 million this year, a ten-fold increase since the U.S. wood products industry began promoting this species, grown in the southeastern United States. Meanwhile, Chinese demand for pressure-treated Southern Pine lumber, a key value-added item produced in the U.S., is forecasted to reach $15 million this year, an all-time sales record and 245% above levels five years ago.


The Southern Forest Products Association (SFPA), a nonprofit trade association representing Southern Pine lumber manufacturers, leverages USDA Foreign Agricultural Service (FAS)-administered Market Access Program (MAP) funds to promote Southern Pine lumber exports. This funding allows the U.S. forest products industry to expand sales in existing markets and enter new emerging markets. Over recent years, MAP funds have helped SFPA sponsor exhibits at trade fairs and to translate technical product literature into Chinese.


As a result, interest in Southern Pine lumber has grown sharply: U.S. companies participating in MAP-sponsored events last year reported immediate sales of nearly $2.2 million and estimate another $16.5 million in sales over the coming months, thanks to contacts made at the trade events.

more...
No comment yet.
Scooped by Sam Radcliffe
Scoop.it!

The triple crown of biomass

The triple crown of biomass | Timberland Investment | Scoop.it

It is easy to harp on government and their inadequacies, but let’s face it, the biomass industry exists in the capacity that is does because of supportive government policies. The industrial pellet sector in the southeastern U.S. exists because of Europe’s climate change policies, which incentivize replacing coal with wood pellets. Yet, despite its importance, policy is not the only factor that enables and boosts growth in the biomass industry. Available feedstock and energy infrastructure, along with policy, form the backbone for growth and innovation in the biomass industry. This week’s DataPoints briefly looks at what I’m calling the “triple crown of biomass” and its regional implications. Without any one of the three components (policy, feedstock, and infrastructure), a biomass project will never be successful.


In the southeastern U.S., the swift rise of the industrial pellet export industry is due to the convergence of policy in Europe, numerous years of deferred harvest in southeastern forests, and an existing port infrastructure along the Gulf of Mexico and Atlantic.

***

The southeastern U.S. forest industry has had a number of pulp and paper plants close in recent decades, which has led to a decline in demand and lower stumpage fees across southeastern forests compared to other regions in the U.S. While stumpage fees for pulp wood in Mississippi were around $9 a ton in the 4th quarter of 2013, an equivalent amount of pulp wood in Maine sold for roughly double during the same time period. The higher stumpage fee in the Northeast discourages bioenergy development on the scale needed for industrial pellet export development. Instead, the biomass industry in the Northeast primarily utilizes mill residue for local biomass power generation and premium pellet production.

***

Despite the Northeast and the Southeast both having a strong port infrastructure, the cost of feedstock in the Northeast along with regionally supportive policy encourages local consumption of biomass rather than exporting it to a different region. 

more...
No comment yet.
Scooped by Sam Radcliffe
Scoop.it!

Japanese firms importing illegal Russian timber

Japanese firms importing illegal Russian timber | Timberland Investment | Scoop.it

Significant quantities of illegal timber products from the forests of Siberia and the Russian Far East are flowing into Japan, according to a new report by the US-based nonprofit Environmental Investigation Agency (EIA). While the United States and European Union have recently enacted new policies that prohibit the import of illegally sourced wood and wood products and require companies to conduct heightened due diligence in their sourcing practices, Japan’s failure to enact similar measures makes it an open market for illegal timber products from around the world.


The report, The Open Door: Japan’s Continuing Failure to Prevent Imports of Illegal Russian Timber,[i] details supply chains for illegally cut Siberian pine, bought by Chinese traders and imported to China, manufactured into wood products and sold on markets all over Japan. In undercover interviews, officials from San Xia, one of the largest Chinese importers of Russian timber, detailed how they purchase this timber from illegal loggers deep inside Siberia and launder this timber across the border using documentation from their forest concession. In factories across northeastern China, San Xia transforms this timber into edge-glued lumber, 90% of which is sold to Japan for housing construction.

more...
No comment yet.
Scooped by Sam Radcliffe
Scoop.it!

New Zealand: Oversupply chops log prices

New Zealand: Oversupply chops log prices | Timberland Investment | Scoop.it

There has been a major drop in the prices of log exports, driven by a buildup of inventory in the main market, China, which is contributing to "a bit of a slowdown" of log exports handled by Port of Tauranga, says commercial manager Leonard Sampson.


"It's not a significant change at this time," he said. "This month we've noticed a small reduction in shipping volumes, but at this stage it's hard to say whether it's a market correction or just a blip. You can't read too much into it and it's such a fluid situation,"
***
The current slowdown has been caused by a significant buildup of logs on wharves in China, said Mr Sampson, who noted that overall demand in China was still strong.
***
Peter Weblin, PF Olsen's chief marketing manager, said he didn't believe the long-term growth trend driven by China was changing. "The market's been climbing consistently for the last couple of years and we don't see that trend changing."


But the buildup of inventory on Chinese wharves had triggered a fall with April's relatively small reduction in export log prices followed by larger reductions this month. Some prices are down as much as $25/JAS per cubic metre, meaning that in just two months export log prices had lost 14 months of prior month-on-month gains. May export log prices were now equivalent to prices in January 2013. Most market commentators were expecting a further drop in price in June, and then a recovery over the next few months, said Mr Weblin.

more...
No comment yet.
Scooped by Sam Radcliffe
Scoop.it!

Surging Western Log Prices Have Peaked for Now

Surging Western Log Prices Have Peaked for Now | Timberland Investment | Scoop.it

Early in 2014, Western log prices soared to levels not seen in nearly twenty years. Escalating softwood lumber prices and a strong appetite for Asian exports fueled competition to meet Western log consumption.


Moderate weather encouraged log suppliers to step up deliveries, quickly filling sawmill log yards to the brim. A Western Oregon third party organization who measures logs for buyer-seller transactions reports volumes for Q1 2014 are up nearly 20 percent over the corresponding period last year.


Douglas fir prices are now reversing direction in many areas. At the close of the first quarter, F2M log benchmark data indicated a 2.5 percent decline for Douglas fir logs is leading the way in Southwest Oregon. Chinese port facilities report an oversupply of softwood logs, and US domestic lumber prices have softened in recent weeks. 


Maybe we are still recovering from extreme winter weather in the east or the resulting transportation slowdowns. However, I suspect mills and builders alike have oversupplied a still shaky housing market, and the supply pipeline is simply full.


Better spring weather may refresh home building demand, and historically healthy log prices will stimulate additional harvest of private timber.A likely correction in export values for China sales will push more whitewood into the domestic markets. Considering these implications of supply and demand, we have seen the highest prices for the year. 

more...
No comment yet.
Scooped by Sam Radcliffe
Scoop.it!

China to Boost Timber Investment in Russia Amid Western Threats to Isolate Moscow

China to Boost Timber Investment in Russia Amid Western Threats to Isolate Moscow | Timberland Investment | Scoop.it

Chinese investors plan to launch the first phase of a major Siberian timber complex later this year, part of a push by Beijing to cement business ties with Moscow amid strained relations between Russia and the EU, a senior manager of the venture said Thursday.


A timber processing park in the Tomsk region of Western Siberia will be part of the first phase of the project, including three mills and a dedicated power plant for industrial needs, said Boris Kaznacheyev, Deputy Director General of Roskitinvest.


Investment in the project has already reached 9 billion rubles ($250 million), Kaznacheyev said. The overall investment in timber logging, processing and related infrastructure is expected to reach 30 billion rubles ($830 million) by 2022.

more...
Nicole Kearsch's curator insight, October 24, 2014 1:18 PM

This is interesting and also somewhat scary.  China has swooped in on Russia when the EU has turned their backs to Russia after the reunification of Crimea.  China is ready to set up shop in Western Siberia to create a thriving timber business.  Also they plan to create a renewable energy project in Crimea.  With China making these developments in Russia, Putin has also noted that some of Russia's gas lines would run into China as part of the deal.  The scary part of this deal is if it leads to more than just China and Russia working together on timber companies, gas lines and renewable energy.

Cyrena & Chloe's curator insight, October 27, 2014 3:53 PM

Economic: The article represents economic because China is trying to make a timber investment. The article discusses about the attempt of investment in Russia. China's first part of the plan is to create a few mills and a power plant for industrial needs in Russia. China has admitted 250 million USD in an expectation to procure at least 830 million USD by 2022.

Rachael's curator insight, October 29, 2014 2:33 PM

EQ: Why might the Chinese want to build a treaty with Russia to trade timber? What purpose does the timber have to the Chinese?

Scooped by Sam Radcliffe
Scoop.it!

Global Timber and Wood Products Market Update

Global Timber and Wood Products Market Update | Timberland Investment | Scoop.it

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.
***
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.
***
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.
***
With record shipments of logs and lumber from North America to China during 2013, it will 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.

more...
No comment yet.
Scooped by Sam Radcliffe
Scoop.it!

International trade in logs and timber worth $50 billion in 2013

International trade in logs and timber worth $50 billion in 2013 | Timberland Investment | Scoop.it

The total value of global trade in logs and softwood timber is estimated to have reached more than $50 billion (£30.3 billion) in 2013 – the highest level since before the economic crash of 2008 – with prices for both commodities rising.


According to Wood Resources International (WRI), which calculated the total from data for January to October, the US “continues to be the major destination for internationally-traded lumber” but countries in Asia imported twice as much timber in 2013 compared to five years ago.

WRI said: “There has been an unprecedented increase in demand for softwood lumber in Asia the past few years, with the three major importing countries, Japan, China and South Korea, together importing more than twice as much lumber in 2013 as compared to five years ago.”


Softwood timber is “by far the most commonly traded wood product worldwide” and the biggest increases in overseas trade have been from Canada to China and from Nordic countries to Japan.

more...
Sean Goins's curator insight, November 13, 2014 1:42 PM

softwood is the most commonly traded wood product worldwide and the us is the number one provider with prices reaching 50 million for it. of late Asia has had an increase in need for softwood so the us will have to respond by increasing production and collection of the this softwood to stay up with demand

Scooped by Sam Radcliffe
Scoop.it!

Cloquet paper mill shifts its focus to textiles

Cloquet paper mill shifts its focus to textiles | Timberland Investment | Scoop.it

The largest paper mill in Minnesota is now churning out a type of pulp used to make textiles.


In a hopeful sign for the state’s forest industries, Sappi Fine Paper in Cloquet announced this week that its $170 million conversion to making pulp for clothing has been successful. The mill in September reached its daily goal of producing 1,050 tons of what’s known as chemical cellulose.


The pulp, which is the hottest forest industry product on the market, is generally sold to textile mills in Asia, blended with other materials and made into thread. Fast-growing demand for the product has outlined one possible future for a forestry industry struggling with the terminal decline of the paper market.

more...
No comment yet.
Scooped by Sam Radcliffe
Scoop.it!

The first half of 2013 saw increased production of lumber in the US

The first half of 2013 saw increased production of lumber in the US | Timberland Investment | Scoop.it

North American lumber production was up 6.7% during the first seven months of 2013 as compared to the same period in 2012, with all regions on the continent showing higher production this year, according to the latest WWPA data. The biggest increases occurred in the Canadian provinces of Quebec and Alberta, and in the Northwestern states of the US. Lumber production levels in the US and Canada have gradually gone up since 2009, and lumber shipments are currently back up to the same levels as in 2008, just after the beginning of the global financial crises, as reported in the Wood Resource Quarterly. There has been an over 35 percent increase in production the past four years, with the biggest gains on the US west coast.

more...
No comment yet.
Scooped by Sam Radcliffe
Scoop.it!

Italy’s timber federation Fedecomlegno predicts a softwood shortfall

Italy’s timber federation Fedecomlegno predicts a softwood shortfall | Timberland Investment | Scoop.it

Italy’s timber federation Fedecomlegno predicts shorter softwood supply and higher prices from the autumn, as European Timber Trade Federation said in the press release received by Lesprom Network.


According to Giampiero Paganoni, president of Fedecomlegno, the key factor behind tightening softwood imports is the raw material crisis facing Italy’s key supplier, the Austrian timber sector. “The main Austrian mils are struggling to find sufficient logs leading to capacity cutbacks and these are having a cascade effect across the wider Austrian timber industry,” he said. “The decrease in production of material for glulam beams, for example, has meant less ‘falling’ material for other users, notably pallet makers.”


In addition, said Mr Paganoni, Austrian producers are tending to redirect short availablility supply to North Africa. “Add all this together, and it’s evident in the near future in Italy there will be less timber and it will be increasingly expensive.”

more...
No comment yet.
Scooped by Sam Radcliffe
Scoop.it!

North American wood pellet exports reached new record in Q1

North American wood pellet exports reached new record in Q1 | Timberland Investment | Scoop.it

North American wood pellet exports reached a new record of over 1 million tons in the first quarter of 2013, according to the North American Wood Fiber Review. There has been a steady growth in shipments from both the U.S. and Canada the past few years, mainly as a result of the continued increase in demand for pellets in the United Kingdom.


Pellet exports from the two primary pellet-producing regions on the North American continent – the U.S. South and British Columbia – showed no signs of slowing in early 2013, with the rate of growth likely to accelerate in the second half of the year. In the U.S. South, pellet export volumes to Europe resumed their double-digit growth after a brief pause in the fourth quarter of 2012. Export volumes, based on information from industry sources as well as trade data in Europe and North America, showed exports in excess of 1.7 million tons in 2012, as reported in the North American Wood Fiber Review.

more...
No comment yet.
Scooped by Sam Radcliffe
Scoop.it!

The granddaddy of all Canadian-U.S. trade disputes is about to rear its ugly head again

The granddaddy of all Canadian-U.S. trade disputes is about to rear its ugly head again | Timberland Investment | Scoop.it

A recent dispute over “country of origin labelling” for meat products underscores the fact that Canada and the U.S. still have their share of trade disputes.


Yet lurking in the background is a massive trade issue that you haven’t heard about for a while: softwood lumber, the granddaddy of all Canadian-U.S. trade disputes. Canada exported $7.4-billion worth of lumber in 2013, the highest amount since 2006. The United States is the destination for the bulk of that wood, and U.S. lumber producers have for decades demanded the U.S. government collect tariffs on Canadian lumber. After decades of dispute, Canada and the U.S. agreed to a nine-year truce in 2006. Under the agreement, the U.S. agreed to return more than $5-billion in duties collected from Canadian lumber companies, and a ceasefire in trade litigation.


If you thought we’ve achieved lumber peace in our time, you might be premature. We’ve now entered the final year of that truce, which is set to expire on Oct. 12, 2015. There are signs this historic trade grievance is set to return with a vengeance. U.S. housing starts are heating up. As U.S. construction grows, demand for Canadian lumber increases, something that will inevitably antagonize U.S. lumber producers who have long argued that Canada’s industry is unfairly subsidized.

more...
No comment yet.
Scooped by Sam Radcliffe
Scoop.it!

West coast log exports up, lumber exports down in second quarter of 2014

West coast log exports up, lumber exports down in second quarter of 2014 | Timberland Investment | Scoop.it

Log exports from Washington, Oregon, northern California, and Alaska totaled 515 million board feet in volume in the second quarter of 2014, an increase of more than 10 percent compared to the first quarter of 2014, the U.S. Forest Service’s Pacific Northwest Research Station reported today. During this same period, West coast lumber exports decreased by 4 percent to 247 million board feet.


The total value of these log exports increased by more than 5 percent to $390 million in the same quarter, while the total value of lumber exports decreased less than 2 percent to $183 million.

China remains a significant market.


“West coast log exports to China remained strong in the second quarter of 2014, increasing by more than 22 percent compared to the first quarter of 2014,” said Xiaoping Zhou, a research economist with the station who conducted the analysis and compiled the data. “China’s demand for West coast lumber, however, continued to decline, dropping by nearly 20 percent compared to the first quarter of 2014.”


Over 70 percent of the West coast’s log exports was shipped to China in the second quarter of 2014, compared to 64 percent in the first quarter of 2014, while lumber exports to China dropped to 35 percent of the total compared to 42 percent during the first quarter of 2014.

more...
No comment yet.
Scooped by Sam Radcliffe
Scoop.it!

Exotic timber pests detected in Australia

Exotic timber pests detected in Australia | Timberland Investment | Scoop.it

EXOTIC beetles which pose a threat to Australia’s forestry industry, horticultural industry, natural environment and gardens, have been detected in pallets imported to Australia.


Department of Agriculture entomologists and biosecurity officers have confirmed the presence of the Asian longhorn beetle, the brown mulberry longhorn beetle and the Japanese sawyer beetle in some pallets.
***
The Department of Agriculture says a staff member in a warehouse notified the department in May 2014 of evidence of pest activity in pallets that had arrived in late April 2014.
***
The consignments were accompanied with internationally recognised certification that pallets had been treated to manage the risk of timber pests, according to the department.

The department says it has traced all 337 containers and all but a very small number of pallets, in Adelaide, have been ordered into quarantine pending fumigation treatment.


The department is working with the importers and the warehouses’ management to eradicate the beetles. There is no evidence at the moment that any of the beetles have started to establish in Australia or are not contained.

more...
No comment yet.
Scooped by Sam Radcliffe
Scoop.it!

China’s timber production rose 2% in 2013

China’s timber production rose 2% in 2013 | Timberland Investment | Scoop.it

China’s domestic timber production rose 2% to 83.67 million cubic metres in 2013. Timber imports (logs and sawnwood) rose 18% to 79.16 million cubic metres log equivalent and the value of China’s timber imports grew 26% to $16.1 billion in 2013, ITTO reported.


In terms of volume the proportion of domestic to imported timber in 2013 was 51:49 which is roughly similar to that in 2012.


Domestic timber is mainly used for fibreboard, mine timber and private purposes in rural areas while imported timber is mainly used for construction, home interior decoration and improvements and furniture production.


Softwoods dominate China’s timber imports and have increased rapidly in recent years. China’s softwood timber imports were 57.18 million cubic metres in 2013 and have been growing at almost 20% per year since 2008.

more...
No comment yet.
Scooped by Sam Radcliffe
Scoop.it!

Log exports to China will slow, expert says

Log exports to China will slow, expert says | Timberland Investment | Scoop.it

The red hot Chinese demand for U.S. timber is beginning to cool due to overbuilding, according to a forest economist.


“While we don’t expect a collapse in log exports, we expect exports to slow in the next five years,” said Rocky Goodnow, an executive at Forest Economic Advisors.


Chinese housing starts are outpacing sales, particularly in third- and fourth-tier cities that have made vast investments in building, Goodnow said at the recent American Forest Resource Council annual conference.

Exports to China boosted U.S. log prices during a time when demand from the domestic housing industry was lagging, he said.
***
At this point, U.S. housing starts are increasing but they remain below the rock bottom levels seen in previous recessions, he said.


The industry probably won’t see a strong growth in demand for lumber until 2016-2017, as more young people form new households, Goodnow said.
***
Meanwhile, several factors will continue to drive Chinese demand for U.S. logs, though at a lower level, Goodnow said.


Chinese builders have developed a preference for the durable Douglas fir logs, which they use for concrete formwork, he said.


They can reuse the wood five or six times, compared to two or three times for Radiata pine from New Zealand, Goodnow said.


Logging levels in New Zealand are also approaching their limit as far as sustainable harvest, which will hinder exports from that country in the future, he said.

more...
No comment yet.
Scooped by Sam Radcliffe
Scoop.it!

Wood pellet exports from North America to Europe have doubled in two years to reach 4.7 million tons

Wood pellet exports from North America to Europe have doubled in two years to reach 4.7 million tons | Timberland Investment | Scoop.it

North American shipments of wood pellets over the Atlantic continued to go up in the 2Q/13 with volumes more than double those in the 2Q/11, according to data compiled by the North American Wood Fiber Review. Shipments to the major consumer in Europe, the United Kingdom, are likely to decline in the coming year because of the closure of a major biomass plant in the UK.


Pellet export volumes from North America to Europe continued to rise during the 2Q/13, representing steady growth for the past seven quarters, according to data compiled by WRI and reported in the North American Wood Fiber Review (NAWFR). In that period of time, volumes exported to Europe have more than doubled, from just over 500,000 tons in the 3Q/11 to over 1.1 million tons in the 2Q/13 (Note. The most current trade data is available to subscribers of the NAWFR).

more...
Jacob Crowell's curator insight, October 15, 2014 1:21 PM

North America has doubled its wood pellet exports to Europe over the last two years due to the closure of a major biomass plant in the UK. This article shows how globalization can greatly effect areas in two totally different parts of the globe. Because the UK i the major consumer of wood pellets in the World, North American companies were able to fill their need after the UK plant closed. Businesses are incredibly impacted my change across the globe. If a plant in the UK closes, the production of a plant in the North America increases. The demand doesn't change and because globalization makes transportation cost low, the price does not change drastically when production occurs thousands of miles away.

Scooped by Sam Radcliffe
Scoop.it!

Comment: The Crimean crisis and the possible repercussions for the European timber market

Apart from the political aspects of the tensions between Russia and Ukraine, there are some concerns over the stability of the European and global timber market.


Russia is the world’s largest log exporter and the fourth softwood lumber export country in the world. Moreover, Russia covers more than one fifth of the global forests and accounts for almost 5% of the worldwide timber trade.

***

What could worry most the timber industry in this case is a trade embargo Russia/Western countries that might dis-balance the entire global timber trade functionality.


There some tight connections between Russia and the EU concerning the wood industry. First of all, many major European timber companies have operations in Russia, especially the Northern European companies. Plus, Russia is the second extra-EU wood products exporter to the EU, after China. By November 2013, Russia exported wood products (under HS code 44) worth EUR 2,7 billion and has at the present a market share (excluding EU member states) of 15% on the EU market. The EU also exports wood products to Russia of nearly 1,2 billion per year.

Overall, the EU-Russia timber trade is over 4 billion annually. If the Crimean crisis deepens, a possible trade embargo (partial or total) scenario will become very feasible, which could have disastrous consequences for the European timber industry.

more...
No comment yet.
Scooped by Sam Radcliffe
Scoop.it!

China: Green timber preferred overseas but not locally

China: Green timber preferred overseas but not locally | Timberland Investment | Scoop.it

Forest farms and timber producers that have green certificates to trade internationally are having a difficult time selling their eco-friendly products on the domestic market.

***

Chen Qinglai, a manager at Paiyangshan Forest Farm in the Guangxi Zhuang autonomous region, said the economic benefits of responsible and sustainable forestry have not been recognized yet in China.
The State-owned forest farm was certified by the Forest Stewardship Council in November 2010, becoming the first forestry center in Guangxi to win certification. The farm, set up in 1955, is 99,300 hectares and was once the biggest forestry in Southeast Asia.


Chen told China Daily the motivation to get certification came from buyers in Europe. "Our client, a timber manufacturer, who buys our wood and sells it to Germany, asked us to get certified as the Germans only buy certified forestry products," Chen said.


The costs, both direct and indirect, of getting certified were around 4 million yuan ($655,000). "Besides the certification fee, the strict standards on environmental aspects inevitably increases forest management costs," Chen said.
***
Every year, the farm produces 150,000 to 200,000 cubic meters of timber with about half labeled environmentally friendly. That timber sells for about 30 yuan per cubic meter more than uncertified timber.
***
Pan Zhenyue, a senior manager at Liheng Timber Manufacturer in Guangzhou, an FSC certified flooring company, said that using certified timber adds 25 percent to the product cost, but the market price in China is not much different as customers will not spend the extra.

more...
No comment yet.
Scooped by Sam Radcliffe
Scoop.it!

Jones hits out at 'arrogant' forest owners

Jones hits out at 'arrogant' forest owners | Timberland Investment | Scoop.it

Labour's outspoken economic development spokesman Shane Jones has lashed out at "arrogant" foreign owners of New Zealand's forests, saying their pursuit of the highest possible profits comes at the expense of local workers, communities and the wood processing industry.


Jones' comments come as he and industry figures ring alarm bells that local processors are being priced out of the log market as skyrocketing Chinese demand drives prices higher.


"There's a hell of a lot of fear now in the wood processing sector that they cannot secure adequate contracts that give them affordable and durable supplies," Jones said. "It's got to the point that the viability of their businesses is being threatened.

***

He pointed the finger at the foreign-owned timber management organisations (timos) which own much of New Zealand's forests including US company Hancock.


"The timos, in particular Hancock, have become arrogant," he said. "They're flicking away all the domestic New Zealand producers and they're chasing the speculative Asian market."

***

New Zealand exported a record 3 million cubic metres of logs to China in the September quarter, a 40 per cent increase on the same period a year earlier and log prices approached record highs during the period.

***

Hancock did not return the Herald's calls but Forest Owners Association president Paul Nicholls said owners were looking for the best return on their investment.


"Most forest owners sell somewhere between half and two thirds of their product to domestic mills but there's always competition for those logs from overseas buyers, so it does come down to a matter of economics, which markets the domestic mills are selling into and what they can afford to pay for logs."


more...
No comment yet.
Scooped by Sam Radcliffe
Scoop.it!

Chinese thirst for wood driving demand for Northwest logs

Chinese thirst for wood driving demand for Northwest logs | Timberland Investment | Scoop.it

If you want to know how China’s construction market is reshaping the Northwest, a Rainier, Ore., log yard is a good place to start.


The Teevin Brothers yard along the Columbia River rumbles with activity while workers prepare half a million logs for the towering ships docked across the river in the Port of Longview. A yellow stacking truck opens its pinchers and sends its payload rolling out across the ground. The air smells like sap and sawdust. Scalers wearing neon safety vests inspect the logs, stapling each with a plastic barcode.
***
Teevin Brothers specializes in log handling and logistics for clients that include Weyerhaueser, Hancock Timber Resource Group and Georgia Pacific. Teevin Brothers alone filled about 18 vessels headed to China last year, Oien says. China’s growing demand for logs may have helped blunt the impact of the recent recession on timber landowners and logging crews, while making it even harder for local sawmills to compete.


Hakan Ekstrom, an industry analyst, says China appears to have a long-term interest in logs from the Northwest. Smaller ports like Grays Harbor and Olympia in Washington and Newport in Oregon are looking for a way into the business.


“Many of the ports that historically had been exporting logs to Japan, if you go back 10 to 20 years in time, have started to explore opportunities to see if they can update equipment, find land and maybe get involved in log exports again,” he says.
***
Newport is a vibrant center of commercial fishing, marine tourism and research on the central Oregon Coast. Efforts here to revive the port’s long-shuttered log export terminal have run into opposition from neighbors and environmentalists.
***
Teevin Brothers is negotiating a lease with the port and a nearby landowner to build a log yard and use the renovated terminal to fill freighters with logs bound for Asia.


Hancock Timber Resource Group, an investment firm that owns about 1.8 million acres of forest in the Northwest, would provide the logs. The firm owns 225,000 acres of forestland in Oregon’s Coast Range mountains within driving distance of Newport. Hancock exports about 25 percent of the logs it cuts.
***
The project would route 50 loaded log trucks a day down the quiet neighborhood’s main street. An Alaskan timber company, Alcan, is negotiating a second log export deal that could double that truck traffic on some days. Many residents are irate. A few have listed their homes for sale.
***
As a result, only private or corporate landowners can export logs without processing them first. Congress banned log export from federal lands in 1968 and from state lands in 1990, and blocked timber companies that export logs from purchasing federal timber to supply their mills.


Today, some environmental groups argue that the export of logs from private lands has increased the pressure on federal forests to resume logging and provide a steady supply for local mills.


Lincoln County used to be home to dozens of sawmills and several veneer mills. Now just one stud mill remains. On a recent evening in Newport, opponents of the log export terminal gathered to hear environmentalists and opponents of free trade discuss the export market.
***
“It would be better to export processed wood products — lumber, plywood or pulp — than logs, thereby creating more domestic jobs and improving state and local economies,” wrote Gary Lettman, the chief economist for the Oregon Department of Forestry, in a report to the Oregon Legislature.
***
But Lettmen also concluded that the log export market provides a crucial option for forest landowners when the demand for lumber in the U.S. drops. That means timberland remains profitable and isn’t sold to developers, and jobs are retained in the logging and forest management sectors.


It’s an argument that’s echoed by the managers at Hancock Timber Resource Group, the investment firm behind the Newport proposal.

“When we first started to do the export program in 2010, there wasn’t a lot of demand for domestic logs. Housing starts had crashed, and our ability to export helped us keep our logging crews together,” says Bill Marre, the Northwest general manager for Hancock.


And analyst Ekstrom says that while log exports may harm Northwest mills in the short term, he expects China to be increasingly interested in importing processed lumber from the Northwest in the future.


The challenge at present, he says, is that China doesn’t have a tradition of building houses framed with 2x4 studs, and builders there don’t use standard dimensions or grades of lumber. That makes it very difficult for Northwest mills to market their products in China. But Ekstrom says the demand for western-style houses is increasing.

more...
No comment yet.
Scooped by Sam Radcliffe
Scoop.it!

Rayonier gets mixed result from China's anti dumping investigation

Rayonier gets mixed result from China's anti dumping investigation | Timberland Investment | Scoop.it

Rayonier Inc. (NYSE:RYN) announced today that on November 6, China's Ministry of Commerce (MOFCOM) issued the following preliminary determination regarding the import of Rayonier dissolving pulp products into China:


1) Rayonier's high purity cellulose acetate and other high purity products will not be subject to any duties as they are specifically exempted.

2) Rayonier's lower purity Fibernier grade product used in commodity viscose applications will be subject to a 21.7 percent interim duty effective November 7.


Paul Boynton, Chairman, President and CEO stated, "While we are pleased that MOFCOM recognized the unique characteristics of our high-purity cellulose specialty products, we intend to challenge the interim duty on commodity viscose as it appears to be based on inaccurate assumptions."


In February 2013, MOFCOM initiated an anti-dumping investigation of imports of dissolving wood, cotton and bamboo pulp into China from the U.S., Canada and Brazil during 2012. These determinations by MOFCOM are preliminary and subject to change upon the completion of its investigation and issuance of its final determination, which is expected in the first half of 2014.


Rayonier is currently reviewing the basis for MOFCOM's duty calculation and expects to submit a formal response next week. In addition, the Company is evaluating all potential product and market segment options that its broad range of capabilities provides in the event that MOFCOM's preliminary duty is not materially reduced or eliminated. Rayonier does not expect that MOFCOM's preliminary duty will materially affect its business results.

more...
No comment yet.
Scooped by Sam Radcliffe
Scoop.it!

Turmoil in the Middle East creates a lumber buying buffet for China

Turmoil in the Middle East creates a lumber buying buffet for China | Timberland Investment | Scoop.it

Traditionally one of the main shipping destinations for Russian and European low grade lumber, Egypt’s Arab Spring, and the subsequent turmoil and chaos that have affected the country, has reduced lumber imports into the port of Alexandria to less than a third of what they were only a few years ago. Syria was also a major destination for low grade lumber until the current civil war overtook the country. Can you imagine going into a bank in Damascus or Alexandria and asking for a loan to buy lumber? It just isn’t happening. A tremendous amount of commerce is being put on hold in that entire region because of uncertainty and fear.


Russia alone was shipping close to 4 million cubic meters of lumber annually into Egypt. This year that volume may be a little less than 1.5 million cubic meters if the current trends hold true.

***

Other countries with main shipping ports such as the United Arab Emirates, Pakistan and Slovenia are trying to fill the vacuum of Egypt’s declining lumber trade in the region. However, building a strong business relationship over new sales routes take time. You can visit the ports of Dubai, Karachi and Koper today where you can see lumber for use in reels, concrete forming, pallet, crating materials, and general construction from pretty much every major sawmill in Scandinavia, Central and Eastern Europe and Russia.


The total volume of lumber being sold into the region as a whole however is down dramatically.


What you are seeing now are sawmills or groups of sawmills which used to ship entire breakbulk vessels to Egypt now shipping dramatically less into the region overall and looking to China as an alternative market. Russian sawmills are now making headway into China as well. American and Canadian lumber suppliers are visiting customers in China and finding that they are suddenly competing against Russian and European lumber products.


The only issue that is holding Chinese buyers from increasing their purchases out of Europe is the fact that transit times compared to North American suppliers are 2 to 3 times longer and there are few common sizes produced in Europe. 

***

One last note to ponder, if and/or when the lumber “super cycle” hits, China may have no other option to satiate their demand for wood fiber than to look to Europe and Russia for additional lumber supply. In my humble opinion, from what I have observed and researched, when we reach 1.2 million housing starts the US will need 100% of the volume of lumber that is heading to China out of North America. The Chinese buyers will have no other option but to look elsewhere for lumber supplies as well as many switching to importing logs and sawing them themselves, changing from lumber import distributors to sawmill distributors. Will North American sawmills continue to try to stay in the export markets to stay diversified for when the next market correction occurs? Or as domestic demand increases will they look at export markets as only spot based sales markets?

more...
Baillie Lumber's curator insight, September 27, 2013 9:13 AM

Interesting take on how the unrest in the Middle East is impacting lumber exports into the region.