Over a 120 individual environmental rights groups have joined together and are calling for a ban on the use of Russian and Belarussian timber, in a direct response to Russia’s invasion of Ukraine. The groups note that most of the wood is being sold directly or indirectly to the United States, the European Union, the United Kingdom, Japan, and China.
News in international markets
Pfeifer Group Making Major Investment in Uelzen, Germany Mill
The Pfeifer Group, an Austrian-based wood processing company that manufactures timber products, is undertaking a massive expansion and modernization program at eight of their northern most locations. The projects are scheduled to be completed in 2024.
Freight Challenges Mounting for Moscow as the World’s Three Largest Container Ship Lines Suspend Cargo Shipments to and From Russia
The moves follow similar decisions already taken by Singapore-headquartered Ocean Network Express and Germany’s Hapag Lloyd (HLAG.DE), effectively cutting Russia off from the world’s leading container shipping companies and adding to freight challenges ahead.
UPM Suspends Deliveries to Russia
As the result of Russia’s invasion of Ukraine, UPM-Kymmene Oyj, the Helsinki, Finland-based forest industry company, has announced that it intended to temporarily cease deliveries to Russia. While the forest industry is not directly targeted by the international sanctions at the moment, sanctions against the financial sector may impact UPM’s or its customers’ businesses and transactions in Russia.
Metsä Group Suspends Wood Production Operations at their Svir Sawmill in Russia
Metsä Group, the Helsinki, Finland-based forest industry group, has announced that it has suspended all wood production operations at their Svir sawmill in Russia. The Metsä Svir sawmill produces sawn timber for a range of industries.
Stora Enso Oyj Halts All Exports and Imports From Russia
On Tuesday (3-2-22), Stora Enso Oyj, the Helsinki Finland-based integrated paper, packaging, and forest products company, which operates three corrugated packaging plants and two wood products sawmills in Russia, said it will stop all exports and imports to and from Russia. The company also announced that a mitigation plan has been activated to secure availability of input materials from other sources.
Brazilian Exports of Wood-Based Products Increased 52.0% Year-Over-Year in January 2022
According to the International Tropical Timber Organization (ITTO), in January 2022, the value of Brazilian exports of wood-based products (except pulp and paper) increased 52% in value compared to January 2021, from US$254.4 million to US$387.1 million. Pine sawnwood exports grew significantly.
What’s Old is Suddenly New Again: Moving Roundwood Timbers by Rail in the U.K.
For the first time in 18 years, roundwood timbers have been successfully transported and delivered by rail to Pontrilas Sawmills in Herefordshire, England. Euroforest Ltd., an independent timber harvesting company, and Colas Rail delivered 400 tons of roundwood timbers from Newton Abbot in Devon to the sawmill site.
Potential Impacts of Russia-Ukraine Conflict on Softwood Log and Lumber Markets
Sanctions on Russia will severely limit its ability to participate in international trade, but the impacts to its softwood log and lumber trade are likely to be less affected than other industries.
Australia’s Farm Forestry Assistant Program Supports Local Softwood Plantation Industry
Australia’s Forestry Minister Dave Kelly has launched the Farm Forestry Assistant program (FFAP) for 2022. The program supports farmers and landowner who wish to plant pine trees on their land.