The latest statistics released by China Customs reveal that China’s import volume of softwood lumber decreased by approximately 10% in 2020. In the first two month of 2021, when compared to the same period of time in 2020, the decline has been 23%. China’s softwood lumber inventory was low at the end of 2020 and at the end of March 2021, it was at 700,000 m3, which is well below the normal average inventory of 800,000 – 1 million m3 in previous years.
News in international markets
New Zealand Sawmills Plan Expansion to Meet Increasing Product Demand
Increased demand for lumber products in New Zealand has led to a national supply shortage. As such, both Kiwi Lumber sawmill and WET Gisborne Ltd., are experiencing greater demand for their finished products. In response to that demand, both companies are taking proactive steps to increase their production.
Södra Announces Purchase of Sawmill and Treating Facility in Sweden
Södra, the international forest industry group, which is owned by more than 53,000 forest owners, announced that pending the approval by the Swedish Competition Authority, it is acquiring Ture Johanssons Trävaru AB and AB Tenhults Impregneringsverk.
Timber Prices Soar in China Soar as COVID-19 Dramatically Limits Timber Imports
The COVID-19 pandemic has sent timber prices in soaring in China. It has also created major supply chain pinch points as timber imports into the country have dramatically slowed. According to a report from the China News in December, China is the world’s largest importer of timber and the second-biggest timber consumer.
Brazilian Exports of Wood-Based Products Increased 30.5% Year-Over-Year in February 2021
According to the International Tropical Timber Organization (ITTO), the value of Brazilian exports of wood-based products (except pulp and paper) in February 2021 amounted to $282.0 million (USD), an increase of 30.5% when compared to February 2020, when they were valued at $216.1 million USD.
Red Stag Timber Weeks Away from Opening New CLT Plant in Rotorua New Zealand
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).
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.