Red Stag Timber, an independent and privately owned timber company based in Rotorua, New Zealand, has announced it is weeks away from opening a new $50 million (A$) wood processing plant in Rotorua. The plant will produce cross laminated timber (CLT).
News in international markets
Japan’s Housing Starts Decline Further in February
According to data released by the Ministry of Land, Infrastructure, Transportation and Tourism on Wednesday, March 31, 2021, Japan’s housing starts continued their decline in February. Year-over-year housing starts in Japan decreased -3.7% in February.
Metsä Fibre Updates Construction Progress at New Rauma Finland Sawmill
Metsä Fibre, a part of Metsä Group, is reporting that the foundation stone has been laid and work continues at the site of their new sawmill in Rauma, Finland. Due to the coronavirus all of the stonework was done without any external participants.
New Zealand’s Sawmills Struggling to Keep Up with Increasing Domestic Demand
According to the New Zealand Timber Industry Federation (NZTIF), a flourishing domestic timber market for residential building and outdoor use has the countries lumber mills struggling to keep up current demand. One producer has gone so far as to completely stop supplying structural timber to some retailers. To meet the surge in domestic demand, some mills are diverting timber set for export back into domestic use.
Irish Forestry Industry Continue to Wait for Relief in Timber Felling License Crisis
Timber processors, forestland owners, contractors and forestry companies in Ireland have been struggling for the past two year to obtain felling (timber cutting and road access) licenses which has led to both supply and employment problems. This as the markets for sawn timber at home and in the UK are good because of shortages from traditional lumber suppliers.
Even with Increased Production Australian Sawmills Struggle to Keep Up with Soaring Demand
The Australian Forest Products Association (AFPA) continues to reassure builders and homeowners that they are doing everything possible to supply as much construction timber to meet soaring demand. AFPA CEO Ross Hampton said that the domestic timber industry supplies around 80% of the timber used in home construction and has ramped up production to keep up with the record demand.
Russia Turns to Timber to Ease Reliance on Oil and Natural Gas Exports
Russia is looking for a way to lower its economic reliance on oil and natural gas exports, which currently makes up almost 50% of the country’s total export volume. It is also looking for a way to improve its environmental image in the world as well. Russian timber is preparing to take the lead on both the economic and environmental fronts.
Capesize Vessels Pressed into Service to Transport Logs and Save Shippers Money
Lumber traders in an attempt to keep their freight cost under control have started using Capesize vessels. Capesize vessels are the largest class of bulk ships and typically carry cargo such as iron ore, coal, and grain. The name Capesize comes from the fact that they are so large that they cannot pass through the Panama Canal and thus have to sail around the Cape of Good hope to sail between the Atlantic and Pacific Ocean.
EU27 +UK Imports of Plywood Drop for Second Year in a Row
Impacts of the COVID-19 pandemic and the United Kingdom (UK) leaving the European Union (EU) has resulted in the EU27 +UK in -7% decrease of plywood and other woods in 2020, this on the heals of a -14% decline in 2019.
China’s Ban on Imported Logs from Australia Creating Hardship on Australian Timber Industry
Diplomatic ties between Australia and its largest trading partner deteriorated last year after Canberra called for an international inquiry into the source of the coronavirus, angering China. Any hopes of a quick reconciliation have been dashed as Canberra and Beijing have now ensnared bureaucrats, who would usually stay engaged during a temporary disagreement.