News in international markets

Belarus’ export program is now being reoriented towards the domestic market—which in turn has required a major restructuring of the timber industry market, with losses in profitability and additional administrative costs being borne by the heads of regional governors.

According to data released by China’s National Bureau of Statistics, new-home prices in 70 cities, excluding state-subsidized housing, dropped 0.29% month-over-month in August. The decline marks the twelfth consecutive month of price depreciation.

Part of the European Union’s renewable energy directive, the biomass amendments, will be subject to a plenary vote in the European Parliament on Wednesday. Three of the European Parliament’s largest political groups have backed the proposal to end subsidies for biomass used in power plants and exclude primary wood burning from the EU’s renewable energy targets.

Estonian sawmills are facing difficult times, and if conditions don’t improve some sawmills may need to temporarily close by year’s end. Deteriorating demand is hitting timber producers at a time of skyrocketing energy prices.

According to data released by the US Department of Agriculture, the US exported 649,185.7 metric tons of wood pellets in July, down month-over-month from June’s 832,092.2 metric tons of wood pellets but up year-over-year from 546,519.9 metric tons in July 2021.

Private Forest Association’s Winfried Von Loe has provided greater insight into the international sales of Luxembourgish wood. Von Loe says that since demand for high grade wood is minimal within Luxembourg, most of it is being exported to the highest bidder.

Izvestia is reporting that the Association of Enterprises of the Furniture and Woodworking Industry of Russia has proposed that the Ministry of Industry and Trade introduce protective duties on the import of furniture, raw materials, or components for its manufacturing from “unfriendly countries.”

According to the International Tropical Timber Organization (ITTO), in July 2022 Brazilian exports of wood-based products (except pulp and paper) declined in value when compared to 2021, falling from US$465.6 million in July 2021 to US$430.8 million in July 2022.

Canfor Corporation announced today that effective September 12, it intends to reduce operations at its Swedish facilities due to a decrease in market demand. The reduced operating schedule will result in a 15% decrease in production capacity and the reduction is anticipated to remain in effect through Q4 2022.

Asia-Pacific Economic Cooperation (APEC) ministers responsible for forestry are calling for greater cooperation between their members to help curb deforestation and further biodiversity loss, as the region increases its fight against climate change and advances action for a sustainable future.