Global timber market review #18-2015

– After adjusting production at its spruce sawmills in Finland, Metsä Wood will start statutory employee negotiations to adjust also pine lumber production due to oversupply and price competition.

– European lumber exports to Japan in the first half-year were 1.144 million m3, which is 19.2% less than in the same period of last year, ITTO reported. This is the lowest volume in the last five years.

– UK timber product imports contracted in Q2, which is the first quarterly fall since Q1 in 2013, TTJ reported. Import volumes in January-June were 1.3% lower on-year, which is 4.67 million m3. Softwood imports were down 1.1% to 2.96 million m3, but the four leading suppliers – Sweden, Latvia, Finland and Russia – recorded growth or at least stable volumes.

– Turkish Yildiz Entegre ordered two new MDF/HDF production lines from Siempelkamp. This is the first time that the company invests in panel mills outside Turkey. Siempelkamp will supply one MDF/HDF plant including a 9′ x 55.3m ContiRoll press to Vladimir in Russia.

– German ENplus A1 wood pellets, according to the German Energy Wood and Pellet Association (DEPV), were 0.5% more expensive in September 2015.

– Tolko Industries Ltd. decided to reduce the output at Quest Wood lumber mill, B.C., Canada, due to continued market challenges in China.

– Canfor announced the permanent closure of its sawmill in Canal Flats, British Columbia, Canada, which has a two-shift production capacity of 424,000 m3, Fordaq reported.

– According to the government of Dalian city, China, the construction of Zhuanghe Imported Timber Trading and Processing Centre will start this year. With the opening of the new facility, the northeast region will be serviced by three new timber berths.

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.