ITC Rules China Dumped Subsidized Plywood, Injuring U.S. Mills

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

Wood Pellet Exports No Threat To Panel Makers

Massive U.S. industrial wood pellet exports to meet green energy goals in Europe is not a threat to the sustainability of U.S. Southern forests, says a new report from the pellet manufacturers.

Drawing from U.S. government and available market data, the report was commissioned by the U.S. Endowment for Forestry and Communities, National Alliance of Forest Owners (NAFO) and the U.S. Industrial Pellet Association (USIPA) – three organizations representing the producers of wood pellets and their suppliers.

The report reveals that industrial pellet exports represent a very small part of forest harvests in the U.S. South, the groups say. Panel manufacturers have expressed concern that drawing too much wood pulp for fuel will raise prices on raw material for OSB and plywood.

• Total removal of wood in the U.S. South for all markets is 3.3% of the total forest inventory.
• Pellet exports represent 0.08% of the total inventory.
• In 2014, pine removals for industrial pellet production totaled 3.7 million tons or 0.3% of the pine pulpwood inventory and 0.09% of the total pine inventory.
• In 2014, hardwood removals for industrial pellet production totaled approximately 2.4 million tons or 0.2% of the hardwood pulpwood and 0.06% of the total hardwood inventory.
• In 2014, pellet exports from the U.S. South to Europe, which represent the vast majority of U.S. pellet exports, were 3.6 million metric tons, or 40% of Europe’s 9 million metric ton industrial pellet consumption.
• Future industrial demand for U.S. pellets overseas represents 0.3% of total forest inventory in the U.S. South.

From Woodworking Network: https://www.woodworkingnetwork.com/wood/pricing-supply/infographic-using-wood-pellets-fuel-no-threat-forests-or-panel-makers?ss=wood,wood,wood_of_the_month,wood,pricing_supply,wood,components_sourcing,wood,panel_supply,wood,wood_veneer,wood,lumber_quotes_charts