Global timber market review #13-2016

– China Wood Importers Committee organized a delegation of wood importers to mid-west China to visit ports and manufacturers. The steady development of the economy in mid-western cities in China and the possibility of supply shortage after the prohibition of commercial logging in natural forests make the construction of the harbours and logistic centres along the Yangtze River more and more important. The three midwestern metropolises of China are Wuhan, Chengdu and Chongqing. The annual wood demand in Wuhan is around 10-14 million m3, in Chengdu – 16-20 million m3.

– Sodra is to reduce annual sawn timber capacity by 200,000 m3 in a bid to improve competitiveness in its sawmills, as the company reviewed its entire structure in terms of market, logistics, production costs and investment requirements.

– According to a recent market survey quoted by ITTO, young Chinese consumers prefer imported laminated flooring over domestic products. The main reasons cited for this preference are the wide choice of colours, convenient installation, durability, as well as competitive price and environmental performance (E0 standard compared to local E1).

– UPM invests Euro 98 million in Kymi pulpmill in Finland in a move to strengthen its position as a supplier of bleached chemical pulp for growing consumer and industrial end-use segments like tissue, specialty as well as packaging papers and board. Kymi’s annual pulp production capacity is expected to increase from the current 700,000 tonnes to 870,000 tonnes of bleached northern softwood and birch pulp by the end of 2017.

– Until the end of 2016, Stora Enso will assess the feasibility of building a 75,000 m3 CLT factory at the site of its Gruvön mill in Sweden. Preliminary study supports this project, which cost is estimated at EUR 30−34 million. The company aims to capture market share from competing materials in the construction sector.

– Following Brexit, the British Federation of Master Builders has warned that the government must ensure that the new system of immigration provides the construction sector with enough skilled workers to build the homes and infrastructure projects needed, TTJ reported.

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.