Global timber market review #9-2016

– On May 1, insolvency proceedings on the bankrupt German Pellets Group were opened. The company is now managed by insolvency administrator, and its mills are gradually acquired by various investors.

– A trial is underway at the international timber warehousing and distribution centre (Manzhouli IRITO, China). According to ITTO, this is an international railway logistics and industrial park which can accommodate around half a million cubic metres. Operations at the centre will help stabilise market prices and reduce costs and risks for enterprises.

– Stora Enso has decided to commence a feasibility study with the aim of expanding containerboard production at Ostrołęka mill in Poland by 500,000 tpy. The findings of a recently completed pre-feasibility study supported continuation of the process.

– A new Softwood Lumber Agreement won’t be agreed in 2016 between US and Canada, as Carl Grenier, lecturer at Canada’s National School of Public Administration (ENAP) and Université Laval, told participants at this year’s Montreal Wood Convention. Overall, Grenier thinks that the Softwood Lumber Agreement signed in 2006 was a bad choice for Canada, while a new agreement will limit the trade options even more.

– The Japan Forestry Agency members met to discuss wood demand forecasts for the first three quarters of 2016. They assume that the consumption tax would increase in 2017 and that the logs, plywood and laminated lumber imports will increase this year, while lumber imports may decrease in the Q2 and Q3 of 2016.

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.