CPA: Quick Guide To The EPA Formaldehyde Regulation

If you manufacture finished goods that contain particleboard, medium density fiberboard (MDF) or hardwood plywood (HWPW), then you likely have been preparing to comply with the Environmental Protection Agency’s (EPA’s) Formaldehyde Emissions Standards for Composite Wood Products rule. If this is the first time you have heard of this Regulation, known also as “TSCA Title VI” after the statutory authority for the regulation, there is still time to prepare for compliance, but time is of the essence. This article provides a general outline of the TSCA Title VI requirements applicable to manufacturers of finished products containing composite wood panels, as well as the key dates for compliance, which have only just been finalized through recent litigation.

TSCA Title VI covers all finished goods and component parts made with particleboard, MDF and HWPW. Fabricators that make component parts using a wood or woody grass veneer (such as bamboo) attached to a composite wood core that is later used in a finished product may also meet the definition for “laminated product” producers, which triggers several additional requirements starting March 22, 2024. TSCA Title VI does include a “de minimis” exemption for finished goods or component parts sold directly to end users if its composite wood content does not exceed 144 square inches on its largest face. This exemption applies only to labeling; products such as small picture frames and others that meet the de minimis definition must still be made with compliant composite wood and comply with recordkeeping requirements.

The central requirement for manufacturers of finished goods is that they use compliant composite wood and that this is documented throughout the supply chain. On March 13, 2018, the U.S. District Court for the Northern District of California issued an order altering many TSCA Title VI compliance dates, including those related to sourcing. Fabricators must either begin using TSCA Title VI certified composite wood panels in all component parts and finished goods by June 1, 2018, or be able to prove that the composite wood panels or component parts were manufactured before, or were in inventory prior to, that date. The Court has now also allowed California Air Resources Board Airborne Toxic Control Measure Phase 2 (“CARB 2”) certified composite wood panels to be considered TSCA Title VI compliant until March 22, 2019.

Read more on this from Woodworking Network at https://www.woodworkingnetwork.com/management/quickguide-to-epa-formaldehyde-regulation-what-woodworkers-need-know?ss=news,news,woodworking_industry_news,news,almanac_market_data,news,canadian_news.

Forisk’s 2018 Lumber And Structural Panel Projections

Forisk projects U.S. softwood lumber consumption of 49.8 BBFT in 2018. This represents a 3.7% increase from our 2017 forecast of 48.1 BBFT and is 5.4% higher than 2016 actuals of 47.3 BBFT. Softwood lumber consumption increased every year since 2009, but remained 26.4% below the 2005 consumption high of 64.2 BBFT. U.S. softwood lumber production is forecasted to increase 5.0% to 35.6 billion board feet in 2018. The South drives this growth with production expected to rise 6.4% for the year, reaching 19.5 BBFT. This would be a new high for the region, surpassing the 19.0 BBFT of production in 2005. In the Base Case, the South’s share of national lumber production increases 0.8% to 55% in 2018.

We project U.S. softwood lumber self-sufficiency to reach 71.4% in 2018 as imports level off, and U.S. softwood production increases relative to consumption. We expect net imports to remain stable in 2018 due to physical constraints on Canadian lumber producers and their inability to grow exports to the U.S.: raging wildfires; stagnant softwood lumber capacity; increasing domestic softwood consumption; two new tariffs imposed on Canadian softwood lumber imports in 2017; and reductions in annual allowable cuts.

In the Forisk Base Case, total structural panel consumption increases from 31.2 billion square feet in 2017 to 36.6 billion square feet by 2022, increasing at a compound annual growth rate of 3.3%. OSB consumption is forecasted to rise 3.1% over 2017, while plywood consumption is forecast to increase 2.1%. For context, our October 2017 forecast was 3.5% lower than actuals, while our initial January 2017 forecast came in at 0.9% below actuals.

Each year we update a multi-phased study for estimating U.S. structural panel consumption. We test variables such as housing starts, GDP, population and others. Outputs from all approaches – regardless of the approach, variables, or form – tend to correlate highly with each other. Simpler models performed better; our final model had an R-squared of 0.97. Then, we evaluate results of our model relative to history and research by the USDA Forest Service and APA-The Engineered Wood Association prior to incorporating the projections into price forecasts for timber and delivered logs across the U.S.

From FORISK Consulting: https://forisk.com/blog/2018/03/15/forisk-research-quarterly-frq-excerpt-2018-lumber-structural-panel-projections/

Weyerhaeuser Posts Growth From Wood Products

Weyerhaeuser has announced that its Wood Products division ended the fourth quarter of 2017 with much better revenues and earnings than one year earlier. Average sales prices had increased in all product segments, with the highest growth rate of almost a third reported for OSB. Sales volumes, which include amounts purchased through the Distribution division, improved for the most part. Softwood plywood (-15.9%) and MDF (-22.4%) were the only products to see lower sales. The division’s consolidated revenues thus rose 19.0% to US$1.228bn.

EBITDA adjusted for extraordinary items from OSB activities leapt to US$104m. The division as a whole saw its EBITDA adjusted for extraordinary items almost double to US$258m. As in the two previous quarters, operating income was hit by high costs for the remediation of defective I-joists and ended up at US$180m. The company created reserves of US$50m to resolve this issue in the fourth quarter. These reserves now add up to US$290m. Weyerhaeuser reported that remediation work had been completed in 99% of affected new buildings by the end of January.

From EUWID: https://www.euwid-wood-products.com/news/miscellaneous/single/Artikel/weyerhaeuser-posts-growth-from-wood-products.html

To MPP Or CLT? That Is The Question

To MPP Or CLT? That Is The Question

To MPP Or CLT? That Is The Question

Article by Rich Donnell, Editor-In-Chief, Panel World March 2018

It’s no coincidence that Freres Lumber’s new Mass Plywood Panel (MPP) plant in Lyons, Ore. is the cover story of this issue—the same issue that is distributed April 13-14, 2018 at the Panel & Engineered Lumber International Conference & Expo (PELICE) in Atlanta.

When you’re promoting your magazine at a conference & expo event, it’s nice to make a splash with the cover story. We think we’ve succeeded. After all, it’s the only MPP plant in the world, and it’s built by a highly respected family owned business that has been best known for its softwood veneer and plywood operations in Oregon. In other words, there’s nothing flash-in-the-pan about this project.

We appreciate the Freres family allowing our editor Dan Shell to visit the mill in late February. We even held up printing the magazine until Dan returned and wrote the article.

Vice Presidents Rob Freres and Tyler Freres will speak at PELICE on Saturday morning, April 14. They’ll be part of a program that also includes Senior Product Engineer Steve Lieberman and Operations Manager Karl Aicher of IB X-Lam USA, which is building the first southern pine cross laminated timber (CLT) plant in the world at Dothan, Ala. We’re anxious to write an article about that one, too.

We don’t think it will be Ali v. Frazier, but there may be some punches thrown and taken between MPP and CLT. All in good spirit of course, as everybody stands to benefit from new building markets.

Those speakers are but four of the 40 on tap to participate and speak on a range of subjects at the sixth PELICE. The agenda appears on pages 24-25 of this issue, and we’re extremely pleased with it, and thankful that so many industry experts are willing to commit their time to prepare a presentation, travel to Atlanta and deliver it.

Meanwhile, on the Grand Ballroom North floor will be 94 exhibitors that have weighed in as Gold, Silver or Bronze sponsors. A list of those companies appears on page 22. If you’re looking for some technology, you’ll find it in this group of impressive companies.

PELICE is the only conference that brings together representatives and companies from all of the primary production segments of the wood products industry—veneer, plywood, OSB, particleboard, MDF, engineered wood products. Fortunately, we’re at a point in time when all of those sectors seem to be doing well, as housing starts continue to edge upward and take interior construction with it.

As busy as you are at home, you won’t be disappointed if you venture to the Omni Hotel at CNN Center. For that matter, bring a lot of people and hold a meeting when you’re not attending PELICE.

We look forward to seeing you.

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HPVA Rebrands As Decorative Hardwoods Association

Hardwood Plywood & Veneer Association has just rebranded as the Decorative Hardwoods Association and launched an easy-to-navigate website packed with resources for trade professionals, manufacturers, and consumers.

“This name change will better describe our diverse membership of North American hardwood plywood, engineered wood flooring, and hardwood veneer manufacturers,” said Don Finkell, chairman of the board of directors of Decorative Hardwoods Association.

The new Decorative Hardwoods Association website highlights the benefits of American-made, real wood products. “We are passionate about showcasing the beauty and craftsmanship of real engineered wood and demonstrating our dedication to sustainable forest management and ethical, legal sourcing of timber throughout the world,” said Kip Howlett, president of Decorative Hardwoods Association.

The resources provided by the Decorative Hardwoods Association include where to buy quality, American-made engineered wood products, information on members’ commitment to sustainable forest management, and how certification and testing protect consumers – and the world’s forests. In addition, more opportunities have been added for members to feature their products and services.

“We care deeply about our forests and our products which maximize the yield from those resources,” said Howlett. “Our association is a legacy that has been handed down from one generation to the next for more than 97 years.”

Read more on this from Woodworking Network at https://www.woodworkingnetwork.com/news/woodworking-industry-news/hpva-rebrands-decorative-hardwoods-association?ss=news,news,woodworking_industry_news,news,almanac_market_data,news,canadian_news.