by Web Editor | Jan 23, 2017 | News
Composite Panel Association Reports Panel Shipments End Year Slightly Below 2015
The Composite Panel Association’s December Industry Snapshot Report indicates that North American composite panel shipments of particleboard and MDF totaled 5.511 billion square feet for the year 2016, a slight decrease of 0.9 percent below 2015.
December shipments totaled 412 million square feet (MMSF) (3/4-inch basis), down 1.5 percent compared to the same month a year ago.
Particleboard shipments totaled 236 MMSF (3/4-inch basis) in December, and were 3.305 BSF for the year 2016, coming in 1.4 percent below 2015. MDF shipments totaled 176 MMSF (3/4-inch basis) for the month and 2.206 MMSF for 2016, essentially flat compared to 2015.
Capitalization rate for particleboard production was primarily in the 65 to 75 percent range for 2016. Particleboard shipments for both the United States and Canada have remained about the same for the past four years. Shipments are extrapolated based on data received from 95.2 percent of the U.S. industry and 100 percent of Canadian industry.
The Industry Snapshot Report is published by the 15th of each month and is available to members on CPA’s web site. The 2016 North American Shipments and Downstream Market Report will be published in May and provide a comprehensive analysis of industry shipments.
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by Web Editor | Oct 12, 2016 | News
From: Panel World Staff
A report conducted by Forest Economic Advisors and released by Composite Panel Association says that in 2015, the total (direct, indirect and induced) impacts of U.S. CPA-member composite panel manufacturing on the U.S. economy were $7.05 billion in output, employment of more than 22,500 and wages of $1.45 billion. The Canadian composite mills’ impact on the Canadian economy were $3.41 billion (Can), employment of almost 11,500 and $724 (Can) in wages.
“Economic Impact of U.S. and Canadian Composite Panel Mills” also reveals that in 2015 37 U.S. CPA-member mills had sales of $2.30 billion and 12 Canadian mills had sales of $1.34 billion (Can).
The report estimates that U.S. and Canadian composite panel facilities consumed 8.3 million dry tons of residual fiber in 2015, out of total residual supply of 76 million dry tons. On a regional basis, composite panel mills in the U.S. South consumed the most wood fiber, accounting for 2.8 million dry tons, 34% of the total in 2015.
Other findings:
— Resin costs account for 30% of composite panel production costs.
— Energy costs account for 10-20% of costs.
— Value-added shipments accounted for 31% of North American particleboard ships in 2014 and 18% of MDF shipments. For particleboard, the biggest value-added product was thermally fused laminate panels, accounting for 66% of value-added particleboard shipments.
— In 2015, the 42 composite panel mills operating in the U.S. and 12 in Canada had total capacity of 8.15 billion SF (five of these U.S. mills were not CPA members).
— In 2015, North American composite panel shipments hit 5.97 billion SF, 31% below the pre-recession mark of 8.64 billion SF, but a gradual improvement over 5.23 billion SF in 2009.
Read more in the November issue of Panel World magazine…
by Web Editor | Apr 20, 2016 | News
Capacity for the North American composite panel industry is expected to increase 4.21 percent in 2016, Composite Panel Association Chairman Steve Stoler told a record crowd at the CPA’s spring meeting in Tucson, Arizona. Increased usage of engineered wood panels in cabinetry, furniture, flooring and other products is helping spur the growth.
The upward trend follows a three-year capacity decline, reported Stoler, general sales manager of Boise Cascade. Capacity is defined as the amount of panels produced, based on maximum press utilization.
“I’ve been encouraged by signs of growth an new investment in our industry after a long period of inactivity,” Stoler said, citing recent announcements of plant upgrades and new lines. The addition of three mills in Mexico also is projected to increase North American MDF capacity by 10 percent.
The CPA also projects shipments of particleboard and MDF to grow 3 percent in 2016. Last year’s shipments of U.S. and Canadian panels hit 5.561 BSF, which was up 3 percent from 2014 figures.
More than 300 people from more than 100 companies attended the April 17-20 CPA event.
From Woodworking Network: https://www.woodworkingnetwork.com/news/woodworking-industry-news/composite-panel-market-to-grow-4-percent?ss=news,news,woodworking_industry_news,news,almanac_market_data,news
by Web Editor | Nov 2, 2015 | News
From: Panel World Staff
Jackson Morrill, president of Composite Panel Association, updated the executive committee’s recommendations on “policy positions” with regard to energy/biomass issues that impact wood fiber supply during the September Fall Meeting in Banff, Alberta.
CPA opposes government policies that distort the market for woody biomass raw material, Morrill noted, adding that market forces should determine all uses of wood and wood residuals for renewable energy; policies that have the direct effect of diverting biomass supply to subsidized energy should be avoided; and governments that choose to initiate policies intended to increase demand for biomass energy production should couple them with policies that increase the available long-term supply of wood to meet future demand of composite wood panels as well as new and growing markets for energy and other uses.
Morrill said CPA will stay silent on the carbon neutrality of wood-to-energy, noting however that forest derived biomass should be treated as carbon neutral where there is a sustainable growing forest; within carbon accounting frameworks, the composite panel industry’s use of wood residuals to make long-lived products should be treated as a higher value use than energy recovery; the composite panel industry’s use of wood residuals is an important alternate use that should be considered when determining the scope of “qualified biomass” under the U.S. EPA Clean Power Plan.
Morrill said CPA will advocate that composite wood products be recognized for their carbon sequestration benefits; that public policies should recognize that sustainably managed forests and forest products sequester and store carbon and reduce CO2; the use of biomass in creating long-lived products that serve as carbon sinks should be formally recognized in any carbon calculations that might be referenced in a future carbon economy.
by Web Editor | Jun 24, 2015 | Update
The best attendance since 2007 turned out for the Composite Panel Assn. annual spring meeting held May 31-June 2 at the Hyatt Regency Coconut Point Resort at Bonita Springs, Fla.
The North America MDF, particleboard and hardboard industries are striving to bring annual shipments closer to capacity, the latter of which was 8.654MMSF as of the beginning of this year, representing 35 particleboard mills, 22 MDF plants, and eight hardboard and engineered wood siding plants. However, it was noted that three new MDF plants (Masisa, Duraplay de Parral and Pro MDF) will go live in Mexico in the next 18 months
Economist Dr. Bill Conerly led off the keynote session addressing The Economic Outlook for Building Materials: New Opportunities and Risks in the Evolving Business Cycle. It won’t be a boom, Conerly said of the economy in the next two years, but it will get better, pointing to U.S. real GDP growth of about 3% in 2016 from its current level of less than 2.5%.
Conerly said housing starts should increase to 1.2 million in 2016, before higher interest rates stall the growth, at which time a surge in remodeling business will surface.
He said higher interest rates stem from the Federal Reserve Board’s concern over inflation, and rates could increase 1.5% per year, possibly beginning this September depending on the strength of the economic data at that time. If the data shows a weakening, however, the Fed will wait. He said the Fed must worry about raising rates too soon, possibly sending the economy into a mild recession, or waiting too long to raise rates, which could cause a more severe recession in 2018-2019.
Conerly said a recent Wall Street Journal survey indicated that the risk of recession is at 12%.
CPA continues to address woody biomass chain of supply and the dynamics of the new generation of wood energy pellet and biomass power plants. Biomass Carbon Neutrality was the subject of a panel discussion moderated by Kelly Shotbolt, president of Arauco North America. CPA especially has an issue with subsidies that encourage the direct burning of woody feedstock. And while the burning results in released carbon, the use of wood products as a building material is storing carbon. The composite panel industry has been very aggressive in challenging biomass proposals and policy that tend to distort the traditional raw material supply chain..
Shotbolt noted that “Circumstances are getting more intense as global governments find ways to reduce the greenhouse footprint. We’re not naive to the fact that wood will be part of the green energy solution. We’re aware of the benefits. We’re a long-standing industry. Our products sequester carbon. As governments intervene we will advocate the expansion of biomass supply.”
The panel included Jim Bowyer of Dovetail Partners; Dave Tenny, president/CEO of National Alliance of Forest Owners; Pete Madden, president/CEO of Drax Biomass; and Laszlo Dory, chairman European Panel Federation.
Madden noted that the Drax power station in North Yorkshire England provides about 7-8% of UK electricity with six turbines, each generating more than 600 MW. He said the company has answered UK directives and incentive for renewable energy by convering two of those turbines from coal to biomass, and a third one is in process, which combined would enable Drax to deliver CO2 reductions of 12 million tonnes per year.
He reviewed the ongoing commissionings of new, 450,000 ton per year wood pellet plants in Gloster, Miss. and Morehouse Parish, La., along with an industrial wood pellet port facility at Baton Rouge, all of which represent a $350 million investment.
Madden said the two pellet plants will each require 1 million tons of fiber per year, 80% of which will be forest residuals (first thinnings) and 20% harvest residuals (slash). Each plant will receive 150 inbounds trucks per day delivering 3,900 tons of raw feedstock. The Mississippi plant will move 50 outbound trucks per day to the port, delivering 1,250 tons. The Louisiana plant will move an 80 car unit train (Union Pacific rail) per week 235 miles delivering 7,200 tons.
Why build the plants in the U.S. South? Madden asked. He pointed to the obvious abundance of fiber and also emphasized that Drax targeted areas where there has been forest products operation closures. He noted that closed pulp/paper and OSB facilities in the Southern U.S. represents more than 28 million green tons of reduced demand for roundwood and chips, while operating and announced (and likely to happen) wood pellet facility demand will be 26 million green tons.
Madden also pointed to the Drax commitment to sustainability, including forest operations auditing as well as performance standards with regard to carbon stock, life cycle greenhouse gas savings and biodiversity protection.
Madden said the size of the wood pellet market on a global scale has been overstated. “There’s not going to be hundreds of pellet mills in the South,” he said. He noted, according to forecasts, that EU demand for wood pellets may double by the end of the decade toward 25 million metric tons but then will most likely plateau.
