by Web Editor | Dec 7, 2015 | News
Increasing housing starts and higher consumer spending will drive anticipated operating income growth for the global paper and forest products industry of 1%-3% in 2016, underpinning the current stable outlook for the sector for the next 12 months, says Moody’s Investors Service in a report published today. However, the outlook for the Printing and Writing Paper segment is negative as digital alternatives continue to curb paper demand.
“Our outlook for the global paper and forest products sector over the next year remains within our stable range as increasing home construction and economic growth drive wood product, packaging and market pulp earnings growth in the low single digits in 2016,” says Ed Sustar, a Moody’s Vice President — Senior Credit Officer and author of the report.
The outlook for the Paper Packaging and Tissue segment will be stable with operating earnings forecast to grow by 0%-4% on the back of increased (1) packaging demand, driven by modest economic uptick and stable food consumption; and (2) tissue demand, driven by population growth and improving hygiene standards.
Expected improvements to US housing starts will likely prop up end-market demand for timber, lumber, oriented strand board and engineered wood products in 2016, which will in turn support the stable outlook for the Wood Products/Timberland segment. However, lower Chinese infrastructure spending is pressuring North American log and lumber exports. Operating earnings in this sector are expected to grow by between 0%-4% in 2016.
Operating earnings growth for 2016 in the 1%-3% range will support the Market Pulp segment’s stable outlook. Prices across most grades (hardwood, softwood, dissolving pulp) will remain flat or decrease as capacity increases outpace demand. As additional pulp capacity comes on-line, inventory management across the fragmented global pulp industry will remain critical to balancing supply and demand.
From Moody’s: https://www.moodys.com/research/Moodys-Stable-2016-outlook-for-global-paper-and-forest-products–PR_340351
by Web Editor | Oct 30, 2015 | News
There will be no Hardwood Checkoff promotions program.
The U.S. Department of Agriculture has stopped the rulemaking process on the controversial “Hardwood Lumber and Hardwood Plywood Promotion, Research and Information Order.” Published in the Oct. 28 Federal Register, the notice from the USDA’s Agricultural Marketing Service states: “Based on comments received, outstanding substantive questions and significant proposed modifications from stakeholders, USDA is terminating the proceeding.” The termination is effective Oct. 29.
Originally published in the Federal Register in November 2013, the proposed Hardwood Checkoff sought to set a tax on lumber producers to help promote wood sales, similar to the “Got Milk?” and “Pork: The Other White Meat” ad programs. The USDA said it received more than 900 comments to the original proposal, the majority of which opposed the program.
A supplemental notice was issued in June 2015, with comments collected through Sept. 7. The sponsoring Blue Ribbon Committee also submitted revisions in September in an attempt to gain the necessary support for the program. Those revisions, which included the removal of plywood, flooring and green mills, and the scaling back of fees, would have reduced the generated revenues significantly below the $10 million sought in the original proposal.
However, the USDA said, “In response to the supplemental notice, USDA received over 300 comments; a majority of the comments continued to oppose the program. Based on all the comments received, outstanding substantive questions and significant proposed modifications to the proposed program from stakeholders, USDA is terminating the proceeding. This action also terminates the proposed rules on the referendum procedures.”
From Woodworking Network: https://www.woodworkingnetwork.com/news/woodworking-industry-news/usda-kills-hardwood-checkoff-program?ss=news,news,woodworking_industry_news,news,almanac_market_data,news
by Web Editor | Oct 19, 2015 | News
CLT Creates New Opportunities For Hardwoods
The latest UNECE Forest Products Annual Market Review highlights the rapid growth in the market for cross laminated timber (CLT) and the new opportunities the product creates for wood, including hardwood, to compete in high-end structural applications. Although the first CLT production facilities were constructed in the DACH countries (Germany, Austria and Switzerland) in 1994, the full potential is only now being realized following a long period of technical and market development.
CLT first entered the building market during the 2005 to 2010 period, transforming from a small-scale niche product into large-scale industrial production. CLT panels consist of several layers of structural lumber boards stacked crosswise (typically at 90 degrees) and glued together on their wide faces and, sometimes, on the narrow faces as well. In special configurations, consecutive layers may be placed in the same direction to obtain specific structural characteristics. CLT products are usually fabricated with three to seven layers, but with additional layers in some cases.
Thickness of individual lumber pieces typically varies from 16 mm to 51 mm and width varies from 60 mm to 240 mm. Boards are finger-jointed using structural adhesive. Lumber is visually-graded or machine stress rated and is kiln dried. Panel sizes vary by manufacturer; typical widths are 0.6m, 1.2m, and3 m, while length can be up to 18m and thickness up to 508 mm.
The dimensions and lay-up of CLT production are now internationally standardized and recognized, and production techniques are optimized in modern manufacturing facilities. CLT is designed to maximize yield, utilize lower grades of lumber, and it can be made in a high volume of very large sections.
The result is a light but very strong panel product that can be made off-site and erected quickly to form structural walls, floors and ceilings. CLT is used in a wide range of applications in single-family houses, multi-story towers, public buildings and specialty construction.
From FORDAQ: fordaq.com.
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