by Web Editor | Jun 11, 2018 | News
Hardwood manufacturers are looking at positive growth continuing in 2018, but they need to expect rising prices for both hardwood lumber and panel products.
According to a report from Forecon Inc., “Lumber prices for our major (by value) species have all shown heavy demand, and most have seen a consistent upward trend in price throughout 2017 and certainly coming into 2018.” Forecon Inc. is one of the oldest established professional forestry consulting firms operating in the hardwood regions of the Eastern United States.
Forecon is reporting high demand for ash lumber in the face of concerns about the emerald ash borer damaging ash timber resources. Another hardwood on the rise is black cherry, which is seeing higher demand, especially from export markets, particularly from China and other Asian countries. But there is also elevated demand in the domestic market.
There is continuing strong demand for hard maple, especially green lumber (not kiln-dried), and reports are that there has been a specific increase in demand from cabinet manufacturers. This is another case where strong export demand, especially in Asia, continues to boost the price. Soft maple is not in as much demand as hard maple, with prices actually dropping a bit in the first half of this year.
One of the steadiest and strongest species of all continues to be red oak, which has set record export levels in volume and dollars this past year, and both international and domestic are staying strong in 2018. Forecon predicts sustained high prices for oak, keeping prices high and possibly climbing even higher into the summer months.
Read more on this from Woodworking Network at https://www.woodworkingnetwork.com/news/woodworking-industry-news/higher-prices-seen-hardwood-trends.
by Web Editor | Dec 6, 2017 | News
The International Trade Commission (ITC) issued its final determination, activating significant tariffs – nearly 200 percent – on some on imports of Chinese hardwood plywood, voting 4-0 that the domestic industry is materially injured, or threatened with material injury, by reason of these dumped and subsidized imports.
The trade group Coalition for the Fair Trade of Hardwood Plywood, which initiated efforts to get tariffs on Chinese plywood twice before times, commended the unanimous decision by the ITC, as “meaningful relief” for the U.S. hardwood plywood manufacturers. The Coalition says 42 mills have closed many more have had to reduce capacity, with a loss of 52,000 jobs in the U.S., and $2 billion in wages.
“Today’s decision demonstrates that the U.S. Government will not tolerate unfair trade practices and will support American manufacturing and workers,” said Kip Howlett, president of the Hardwood Plywood Veneer Association. “This puts American interests first by standing up to the illegal imports of Chinese hardwood plywood.”
Less exuberant are furniture and kitchen cabinet makers that favor the less expensive plywood from China, including members of Kitchen Cabinet Manufacturers Association (KCMA), and other buyers who have lobbied against the ITC decision, which will lead to high tariffs. KCMA and other members of American Alliance for Hardwood Plywood – mostly distributors of Chinese plywood – expressed shock at the punitive tariffs that were not disclosed until President Trump returned from his recent trip to Asia following meetings with China’s President Xi.
From Woodworking Network: https://www.woodworkingnetwork.com/news/woodworking-industry-news/verdict-china-dumped-subsidized-plywood-injuring-usmills-says-itc?ss=news,news,woodworking_industry_news,news,almanac_market_data,news,canadian_news
by Web Editor | Apr 3, 2017 | News
Raute Corporation and the owners of Metriguard, Inc. have agreed on the purchase of the business of Metriguard Inc., Pullman, Washington, USA.
Metriguard, established in 1972, is the world leader in high speed strength grading technology for lumber and veneer. Metriguard sells and provides services for its equipment globally, with installations in North and South America, Europe, Asia, Africa, Australia and New Zealand.
Metriguard’s products and technology are complementary to Raute’s current product offerings. Over the years, Metriguard’s products have been integrated into dozens of Raute’s deliveries. Metriguard’s net sales were USD 4.6 million in 2016, with an EBIT of USD 0.8 million, and it employs 26 people.
Metriguard’s business will continue by a newly established Raute’s subsidiary Metriguard Technologies, Inc. Its financials will be reported as part of Raute’s wood products technology segment. The acquisition is deemed to have a positive effect on Raute’s net sales in 2017 and on its financial results starting from 2018.
The acquisition is made as an asset purchase. Intangible assets, working capital and fixed assets, except real estate, are acquired. Metriguard’s personnel will transfer in along with the acquisition. The purchase price, estimated at USD 4.5 million, is paid in two installments. A base purchase price of USD 3.1 million is paid at closing, additionally there will be an earn-out payment based on net sales for a 12-month period following closing of the transaction.
For more information visit https://www.raute.com/.
by Web Editor | Dec 14, 2016 | News
Wood based panel market size was valued over USD 16 billion in 2015 and is anticipated to grow at CAGR of over 13% and exceed USD 35 billion by 2023.
In 2014, China wood based panel market accounted for more than 50,000 products for manufacturing and trading enterprises, employing more than 10 million workforce and generating an output of USD 155 billion. The utilization by these enterprises exceeds 520 million and the value of exports was USD 75 billion in 2014. However, the sector suffers from a poor image due to quality scandals. In 2015, Italy has recorded gain of 7%, with an optimistic business climate for the third consecutive quarter.
China exported 5.8 million tons of wood based panels which cost around USD 5,813 million in 2014, growing at a CAGR of 15% over the previous year. China trades with the U.S., where it exports around 15% of its total panel, accounting for 55% of the U.S. total imports. One of the challenges that both the North American and European panel makers are facing is the increasing imports from China.
Increasing deforestation has lead towards the global warming which has boosted the demand growth for efficient and effective utilization of timber. This is expected to fuel the industry demand over the forecast period. In addition, technological innovation and advancement along with the mounting efficiency in manufacturing is likely to bolster the demand from 2016 to 2023.
Modernization in infrastructure and rapid industrialization in developing economies of Asia Pacific is likely to be a chief industry driver for the global wood based panel market over the next few years.
From SATPRNews.com: https://satprnews.com/2016/12/13/wood-based-panel-market-size-to-exceed-usd-35-billion-by-2023-global-market-insights-inc/
by Web Editor | Jul 20, 2016 | News
For years, it was known as the ugly duckling, cheaper alternative to plywood. One design maven described it as “like the turkey loaf of building materials.” But oriented strand board – OSB for short – has come into its own over the past 3 1/2 decades as a major player in North American wood-frame housing construction and is increasingly used for industrial and other applications.
Structural OSB panels – made of wood strands that are resin-bonded under high pressure and heat – are mostly used as floor, roofing or wall substrate in home building. They’re also getting play these days on fashionable interior-decoration websites as a “shabby-chic” finishing material.
Capitalizing on OSB’s rise like no other forest-products company is Toronto-based Norbord Inc. Norbord, once a diversified forestry company, has shed assets over the years and focused on OSB. Now boasting annual sales in the $1.5-billion (U.S.) range and a market capitalization of about $2.4-billion (Canadian), it bills itself as the world’s largest producer of OSB.
The $763-million acquisition in 2014 of Vancouver-based Ainsworth Lumber Co. Ltd. gave Norbord – whose operations were concentrated in the U.S. southeast – a strong presence in Western Canada as well as a foothold in the promising Japanese market.
Right now, the steadily growing number of housing starts in the United States is giving Norbord a big boost, and low-key, media-shy chief executive officer Peter Wijnbergen says there are major growth opportunities in Europe and Asia.
From The Globe And Mail: https://www.theglobeandmail.com/report-on-business/forest-products-firm-norbord-riding-the-rising-wave-of-osb-sales/article30985989/
