Global timber market review #18-2016

– Austria-based timber group Binderholz is positioning itself to make greater inroads in the UK’s sawn and planed softwood market following the formation of a new UK division, TTJ reported. The company is looking to sell the products from two Finnish mills acquired from Vapo Oy earlier this year.

– Setra has signed a declaration of intent with Bergs Timber AB regarding the sale of Vimmerby sawmill in Sweden. “Setra Vimmerby’s integration with Setra’s other production units as regards raw material supply and market concept is not particularly high. It is therefore logical to seek other ownership structures for this unit,” says Hannele Arvonen, President and CEO of Setra.

– Canada and the US are negotiating actively on the new softwood lumber agreement: the parties continue to make regular meetings and conference calls, Bloomberg reported. A new pact on softwood lumber should be flexible and reflect the commercial realities of every Canadian province to get the country’s support, said Canada’s Ambassador David MacNaughton. The US pushes for a quota on lumber imports, while Canada wants different options for several provinces. If no agreement is ratified before October 12, imports from Canada could be subject to tariffs of up to 25%. Against this background, the Montreal Economic Institute (MEI), a Canadian public policy research center, has recently published a study claiming that the tariff barriers imposed on Canadian softwood lumber cost American consumers a fortune, all while enriching a limited group of producers.

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.