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WhatWood Global Trends Review Global timber market review #3-2016

Global timber market review #3-2016

28 February 2016 ` 16:18  

– The decline in Canada’s sawnwood exports to China has turned sawmills to look for alternative export markets. Possible candidates to make up for the weak low-grade lumber market in China are South Korea, Japan, India and other Asian markets. All this comes despite strengthening US demand and lowering Canadian timber supply. The Softwood Lumber Agreement between Canada and the US expired last October and it is unclear whether it will be renewed under similar terms this year. It is possible that the US industry will challenge the terms because of the weak Canadian dollar.

– The Russian Government banned exporting recovered paper for four months with effect from 18 December 2015 and this step has been affecting the Polish market since January, EUWID Paper business journal reported.

– As the price of crude oil slides down, pellet producers face some challenges. According to Fordaq, production has stopped at some of German Pellets plants.

– Metsä’s Vilppula and Svir sawmills have set new production records in 2015. The new annual production record for Vilppula sawmill with a single production line is 452,200 m3, for Metsä Svir sawmill 251,500 m3. Vilppula sawmill is located in the town of Mänttä-Vilppula, Finland. The sawmill has five weekday weekly production. In addition to internal processing, major customers of the sawmill include companies manufacturing upgraded sawn timber products, the furniture industry and distributors. Metsä Svir sawmill is located in Leningrad region, Russia. According to WhatWood data, available in the review of Russian sawmills, Metsa Svir rated capacity is 350,000 m3, and the company delivers spruce lumber to France, Estonia, Israel, Japan and the range of other markets.

– After reaching a record high of 14.3 million m3 in 2014, log trade in the Baltic Sea fell by 10% in 2015, WRQ reported. Most of the decline was that of softwood pulplogs, while trade of sawlogs actually increased to reach its highest level since 2007. Russia has been surpassed by the Baltic States as the major softwood log supply region. It is interesting to note, however, that during the same period, exports of hardwood logs from the Baltic States have fallen almost 30%, as Russia has become a more aggressive player with the weak rouble making Russian logs more competitive.

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.

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