China’s SGS Certifies Composite Wood Products For U.S. Market

SGS has announced that it has become the first third-party certifier (TPC) to be accredited by the Hong Kong Accreditation Service (HKAS). This an award secures its long-term capability for the testing and certification of composite wood products for the U.S. market.

The Hong Kong Accreditation Service is an accreditation body recognized by the U.S. Environmental Protection Agency to provide services under the Formaldehyde Emission Standards for Composite Wood Products Rule.

Achieving additional TPC accreditation requirements secures SGS’s position in the certification of composite wood products for the U.S. market beyond March 22, 2019 and further positions SGS as a global leader in certifying these products and related services.

In the United States, formaldehyde emissions from composite wood products are governed by the Formaldehyde Standards for Composite Wood Products Act, which is administered by the EPA.

Signed into law in July 2010, this legislation was and became the amendment and Title VI of the ‘Toxic Substances Control Act’ (TSCA). It contains requirements for composite wood panel manufacturers, fabricators of finished goods, and importers, distributors and retailers of composite wood panels and finished goods.

Read more on this from Woodworking Network at https://www.woodworkingnetwork.com/news/woodworking-industry-news/sgs-hong-kong-certifies-composite-wood-products-us-market?ss=news,news,woodworking_industry_news,news,almanac_market_data,news,canadian_news.

U.S. Forest Service Celebrates CLT During Forest Products Week

From October 21-27, 2018, we celebrate the value of America’s forests and recognize how vital they are to our well-being and national prosperity during National Forest Products Week. This week is recognized each year by a Presidential proclamation. At the USDA Forest Service, we work year round to create new opportunities for wood products that contribute to diversified rural economies and support sustainable forest management.

By supporting forest products markets, we have the opportunity to create safer communities by reducing wildfire risk, supporting rural economic development, and contributing to a more sustainable building sector. The Forest Service is working to develop the U.S. market for cross-laminated timber, or CLT, and other mass timber technologies.

CLT is a made from several layers of dried lumber boards stacked in alternating directions, glued and pressed to form rectangular panels. These panels have exceptional strength and stability and can be used as floors, walls and roofs in building construction, replacing or used along with traditional building materials such as concrete and steel. In fact, the International Code Council is examining whether or not tall wood buildings up to 18 stories will be included in the 2021 International Building Code. A final decision will be made later this year.

The state of Oregon has already adopted the proposed provisions for the International Code Council under its Statewide Alternate Method, and Washington State legislation already embraces mass timber construction. The U.S. Department of Defense is already using CLT in some of its on-base housing because of the incredible resiliency of the materials and their resistance to explosive forces.

We are on the precipice of major momentum in the marketplace with mass timber, with four factories in production, including two making architectural grade CLT; five factories coming online (either under construction or just completed); and three more factories recently announced in eight states. Compounded with the upcoming code decisions, we expect to see many more mass timber and CLT buildings in the near future.

From the USDA: https://www.usda.gov/media/blog/2018/10/22/forest-service-celebrates-cross-laminated-timber-during-forest-products-week

Katerra Merges With KEF Infra, Already Has $3.7 Billion In Bookings

Offsite design-build company Katerra and India-based manufacturing technology company KEF Infra have announced a merger that will see the newly formed KEF Katerra begin conducting operations in India and the Middle East. KEF Katerra, according to MEP Middle East, already has $3.7 billion in bookings.

Both companies use offsite manufacturing and technology as part of the “end-to-end” building services they provide. KEF Infra also uses robotics and automation in its manufacturing business and produces items like pre-cast concrete, prefabricated bathroom pods and aluminum and glazing facades. Katerra said it will also employ KEF Infra’s pre-cast technology in the U.S. market.

In addition to housing, the company will focus on building community infrastructure assets like hospitals and schools. Post-merger Katerra will have a total of 20 offices and 3,400 employees around the world.

Earlier this month, Katerra sealed the second of two acquisition deals in as many weeks. Those transactions, intended to increase the companies’ design capabilities in the U.S., saw the company enter into agreements with Portland, Oregon-based Michael Green Architecture and Lord Aeck Sargent in Atlanta. After those deals were complete, Katerra had 31 U.S. state architecture licenses plus credentials in British Columbia and Alberta, Canada, and saw its staff size double. Green’s area of expertise is in the use of mass timber, and it designed the T3 mass timber office building in Minneapolis. One of Lord’s focuses is sustainable, urban projects.

In addition to its plans for growth through mergers and acquisitions, Katerra also said it would open six manufacturing plants by March 2019, including a Spokane, Washington, facility that will produce mass timber. The 250,000-square-foot plant is expected to generate 4.6 million cubic feet of cross-laminated timber annually. The five other Katerra plants will manufacture standard wood panels and trusses.

From Construction Dive: https://www.constructiondive.com/news/katerras-new-company-with-indian-manufacturer-kef-already-has-37-billion/526840/

More Record-Level Lumber Prices Expected In 2018 From U.S. Import Duties

In WOOD MARKETS’ new five-year softwood lumber forecast, the continuation of U.S. duties on Canadian lumber exports to the U.S. are expected to cause more short-term market and price volatility. The preliminary duties launched earlier in 2017 rocked the U.S. market and more of the same is expected in 2018. As we predicted one year ago, the headline for last year’s WOOD MARKETS 2017 news release was bang on: “U.S. Import Duties on Canadian Lumber to Cause Market Chaos and Soaring Prices.” Indeed, they did. The WOOD MARKETS 2018 Outlook Report predicts more chaos and the chance of further record-breaking prices.

These details and further analysis of commodity lumber and structural panels was released earlier this week in the report, WOOD MARKETS 2018 – The Solid Wood Products Outlook: 2018 to 2022 by WOOD MARKETS/FEA Canada, Vancouver BC.

The recent announcement of final countervailing (CVD) and anti-dumping (ADD) duties on Canadian lumber exports to the U.S. will cause lumber prices to remain near record levels in 2018 and even higher at various points over the next five years. This is because Canadian exports to the U.S. are forecast to ease in 2018.

“Simply put,” indicated Russ Taylor, Managing Director, WOOD MARKETS/FEA Canada, “by restricting incremental Canadian lumber exports via import duties, there may not appear to be enough lumber supplies to adequately balance with projected U.S. demand. There will need to major increases in U.S. lumber capacity (which is starting to build), more offshore imports, and/or record-level prices to stimulate more supply. The question that we have seen coming for a number of years is: Where will the U.S. get all of the lumber it needs, and at what price?”

The impact of U.S. import duties on Canadian lumber production and exports has been developed from building a cost curve of Canadian producing regions from WOOD MARKETS’ Global Timber/Sawmill/Lumber Cost Benchmarking Report. From this, WOOD MARKETS has overlaid a cross-Canada timber supply availability map with delivered log and sawmill costs to determine which producing regions (and mills) are most impacted by 20.23% (“all-others”) import duties.

Read more on this from International Wood Markets at https://www.woodmarkets.com/news-release-record-level-lumber-prices-expected-2018-u-s-import-duties/.

ITC Ruling: Canadian Lumber Subsidies Harmed U.S. Producers

The United States International Trade Commission (ITC) ruled that the U.S. lumber industry is materially injured by Canadian government subsidies of their softwood lumber industry.

Voting 4-0 in favor of the U.S. lumber industry, the ITC ruling follows a U.S. Department of Commerce determination that imports of softwood lumber from Canada are sold in the United States at less than fair value and subsidized by the government of Canada. The antidumping and countervailing duties on imports of Canadian softwood lumber products have been collected pending the final demermination of the ITC.

“The U.S. Lumber Coalition fully supports the enforcement of America’s trade laws. The evidence presented to the ITC was clear – the massive subsidies that the Canadian government provides to its lumber industry and the dumping of lumber products into the U.S. market by Canadian companies cause real harm to U.S. producers and workers,” said U.S. Lumber Coalition Co-Chair and Co-President of Pleasant River Lumber Company, Jason Brochu.

“Now, with a level playing field, the U.S. lumber industry, and the 350,000 hardworking men and women who support it, can have the chance to compete fairly.” Pleasant River stamps each board with a Made in USA label at its Sanford, Maine sawmill.

Under the Trump Administration, the Department of Commerce, which operates the International Trade  Commission, has been ratcheting up pressure on U.S. trading partners over what it sees as subsidies across several industries, beginning the forest products sector. Last week China was hit with a formal determination by the ITC that it subsidized plywood exports to the U.S., effectively dumping low-priced plywood to the detriment of the domestic manufacturers. The Department of Commerce is expected to pursue solar panel manufacturers in China in coming weeks.

From Woodworking Network: https://www.woodworkingnetwork.com/news/woodworking-industry-news/canadian-lumber-subsidies-harmed-us-producers-trade-commission-rules?ss=news,news,woodworking_industry_news,news,almanac_market_data,news,canadian_news