News in international markets

On February 12th, Cyclone Gabrielle cut a large path of destruction through New Zealand’s Tairāwhiti, Hawkes Bay, Coromandel, and Northland regions. The region is home to almost 30% of the country’s forestry plantations, according to local reporting by “Stuff Limited.”

Lumin, a leading timberland and forest products company, announced on Friday that it will be investing approximately $136 million (USD) to build its third industrial plant in Uruguay. The investment is expected to create more than 300 jobs and appreciably increase the country’s sustainable plywood production.

According to data released on Tuesday by United States Department of Agriculture’s Foreign Agricultural Service, the US exported 917,175.4 metric tons of wood pellets in December. This is above November’s shipment of 694,199.7 metric tons, as well as the 798,883.6 metric tons exported in December 2021.

Finland’s Keitele Group is reporting that the “temporary slowing” in the demand for lumber and wood products—which started in June of 2022—continues with no immediate relief in sight. Keitele cites the war in Ukraine, rising interest rates, expensive energy, and the overall global economic situation.

With hot and dry weather conditions expected to continue through the week, Chilean firefighters are battling out-of-control forest fires. The current forest fires already have the distinction of being the deadliest in the country’s recent history and have the potential of becoming even more deadly, according to a report by Reuters.

The Austrian Pfeifer Holding GmbH announced on Tuesday that it has successfully completed the acquisition of the largest private wood process company in northern Finland, Pölkky Oy. The contract had been waiting on the competition authority’s approval, and that has just been secured.

According to the International Tropical Timber Organization, in December, Brazilian exports of wood-based products (except pulp and paper) declined 34.0% in value compared to a year ago, falling from US$423.2 million in December 2021 to US$278.8 million in December 2022.

In response to sustained high demand for logs that continues to outpace supply, South Africa’s third largest state-owned enterprise, the SA Forestry Company (Safcol), has vowed to prioritize the supply of logs to companies that process local and employ local people.

Södra Skogsägarna, trading as Södra, a forestry cooperative based in Växjö, Sweden, announced on Thursday that it was raising the price of mainly normal spruce and pine timber purchased by members by SEK 30 per cubic meter, effective immediately.