Global timber market review #17-2015

– According to a representative from one of the main redwood markets in Beijing, some 12 stores selling redwood products have closed and only 2 remained open as of the end of July. The future for solid wood furniture in Beijing does not look bright and analysts expect further closures.

– According to TTJ, one of the UK’s biggest suppliers of timber to the British furniture trade, Premier Forest Group, has turned the tables on the traditional supply chain and has struck a deal to supply OSB to the furniture manufacturing sector in South China.

– Metsä Wood will start statutory employee negotiations to adjust its production at sawmills in Finland. Oversupply and price competition that have prevailed in the sawn timber market have resulted in poor price development of Finnish sawn timber.

– Versowood is also commencing statutory co-operation negotiations concerning the adjustment of capacity to the current demand and order backlog. The negotiations cover all four Finnish sawmills of the company.

– The Japanese Forest Agency made up demand projection of major wood products for the second half of this year. Demand for domestic lumber will increase while that for plywood will decline.

– Holzindustrie Schweighofer has started the operation at its newest sawmill in Reci, Romania, after receiving all the permits required to function, as Fordaq reported.

– To satisfy the growing demand for pulp, SCA has decided to invest in increased capacity for pulp production at the Östrand pulp mill in Timrå, Sweden.

– In the first half of 2015, China’s log imports were 23.123 million m3 valued at $4.38 billion, down 14% in volume and 32% in value on the same period in 2014, reported ITTO. Imports from New Zealand were 5.8 million m3, compared to 6.12 million m3 a year ago, from Russia – 5.43 (5.97) million m3, from the US – 1.93 (3.19) million m3. The average FOB price for imported logs fell 21% to $190 per cubic metre. This was the result of slowing down economy and housing investments in China.

More detailed review of global market trends of roundwood, lumber, wood panels and pellets as well as news of the Russian timber industry; exclusive articles and interviews; over 25 pages of price charts are available in our digital Russian Timber Journal.