News in international markets

Citing other countries with world-leading forest industry research institutes that are delivering breakthrough discoveries right now, The Australian Forest Products Association (AFPA) and the University of Tasmania are calling on the Australian Federal Government to invest $100 million (A$) over the next 4-years, with matching funds coming from the industry to correct Australia’s research shortfall.

KSI Sawmills has announced that they are making a $4.5 million-dollar (A$) investment in South Australia’s timber industry. KSI Sawmill currently operates a small mill at Nuriootpa and plans on building a new mill which will be strategically located allowing for expansion, offering improved transportation routes central to both local timber plantations and downstream markets.

Responding to reduced demand in the paper market, Stora Enos announced back in April 2021 that it planned to permanently close down pulp and paper production at its Kvarnsveden and Veitsiluoto mills. As a result of the co-determination negotiations regarding the Veitsiluoto site, the three paper machines, chemical pulp and groundwood production, and the sheeting plant will be closed permanently.

The Russian State Commission for the Development of the Arctic has announced it has approved an investment project for the construction of a new pulp and paper mills (PPM). It will be the first new PPM to be built in Russian in over 40-years.

Metsä Fibre has announced that it has selected long-time partner LSAB Suomi Oy to deliver blades to its new Rauma sawmill in Finland. The value of Metsä Fibre’s Rauma sawmill investment amounts to approximately 200 million Euro, and the new unit will produce around 750,000 m3 of pine sawn timber annually.

Having sold off much of the Crown forestry estate over 30-years ago, most of New Zealand’s (NZ) forestry lands are currently in private hands. Today the NZ government is looking for those private forestry land holders to help them with carbon offsets, provide enough timber for housing, and earn export income and supply biofuels and biocoal to fill the countries’ vehicles and boilers.

According to data released on June 8, 2021 by United States Department of Agriculture’s (USDA) Foreign Agricultural Service, the U.S. exported 635,463.4 metric tons of wood pellets in April. This is down from 667,309 metric tons in March, but up from 595,166.2 metric tons in April 2020.

Japan’s housing market continues to fight an uphill battle, despite some signs of improvement. In February, Japan’s housing starts declined -3.7%, followed by a slight improvement in March of 1.5% to 35,448 units.

According to the International Tropical Timber Organization (ITTO), the value of Brazilian exports of wood-based products (except pulp and paper) in April 2021 amounted to US$376.4 million — an increase of 57.5% when compared to April 2020, when they were valued at US$238.9 million.