Last summer, Indian Valley and the towns of Greenville, Taylorsville, and Crescent Mills were right in the middle of the largest single-source fires and one of the most destructive blazes in California’s history. The Dixie Fire ran flames up and down the surrounding hills and pushed, at times, onto the valley floor.
News in lumber
U.S. Commerce Department Issues Preliminary Determination on 3rd Administrative Review of Certain Softwood Lumber Products Imported From Canada
The US Department of Commerce today (1-31-22) issued its preliminary determination in their Third Administrative Review of certain softwood lumber products from Canada. The new combined “All Others” rate of 11.64% is down from the current rate of 17.91%. This Preliminary Determination does not change the duties currently being collected, nor will it be the final rate.
New Partnership Will Allow Sans Group to Process Wood Waste into Value-Added Wood Products
Sans Group — which operates sawmills and remanufacturing plants in Port Alberni and on the mainland in B.C. — announced on Wednesday (1-26-22) that it has entered into a strategic lumber supply agreement with Seaton Forest Products, based in Smithers. The agreement allows San Group to process waste wood from Seaton into commodity grade lumber products.
Canadian Industrial Product Price Index Moves Higher in December on Softwood Lumber Gains
Statistics Canada (StatsCan) reported today (1-31-22) that prices of products manufactured in Canada, as measured by the Industrial Product Price Index (IPPI), rose 0.7% on a monthly basis in December and were up 16.1% year-over-year. Prices of raw materials purchased by manufacturers operating in Canada, as measured by the Raw Materials Price Index (RMPI), fell -2.9% month-over-month in December but increased 29.0% year-over-year.
Saskatchewan Forest Industry to Benefit from British Columbia’s Reduced Timber Basket
Despite its vast and mature forests, Saskatchewan forestlands have been under-utilized. That is until now. Over the past several weeks, the province has announced a reallocation of its forest resources, primarily located north of Saskatoon, and that will result in sizeable forest industry investments. Those forestland reallocations are expected, over the next two years, to lead to over a $1 billion dollars (CAD) in new investments in Saskatchewan’s forest industry.
Goods Used in Residential Construction Climb 1.5% in December
According to the Bureau of Labor Statistics’ (BLS) latest Producer Price Index (PPI), which was released on Thursday (1-13-22) with additional analysis provided by the National Association of Home Builders (NAHB), reveals that the price of goods used in residential construction, less energy, climbed 1.5% in December (not seasonally adjusted). The index was driven higher by a significant price increase for wood products.
U.S. Commerce Department Amends Notice of Final Results of the 2019 Administrative Review of the Countervailing Duty Order
On Thursday, January 6, 2022, the Department of Commerce (DOC) amended its notice of final results of the 2019 administrative review of the countervailing duty (CVD) order. In the amendment, the DOC stated they had incorrectly calculated J.D. Irving and West Fraser’s CVD rates. The new CVD rates are 3.46% and 5.08%, respectively.
FEA’s Paul Jannke Provides Expert Analysis and Insight into North America’s Housing and Lumber Markets in 2022
With the U.S. economy and employment growing robustly in 2021 and 2022, interest rates remaining low by historical standards, many of the supply-side constraints that held back housing over the past half-decade resolved, and high pent-up demand, Jannke says that he expects housing starts will continue to grow from an average of 1.584 million units in 2021 to 1.618 million in 2022. Ultimately, he expects lumber prices will continue to be volatile in 2022.
U.S. Sawmill Output Continues to Trail New Home Construction
The National Association of Home Builders (NAHB) has provided a deeper look into the relationship between U.S. domestic sawmills’ inability to increase output to meet growing demand since mid-2020 and the resulting lack of new home availability. The NAHB cites the lack of increased domestic sawmill activity as one of the primary factors that has contributed to record high lumber and panel prices and continuing price volatility in both the lumber and housing markets.
One Equity Partners to Acquire Majority Interest in Rosboro
One Equity Partners, a New York City-based middle market private equity firm, announced today (1-6-22) that it has acquired a majority interest in Rosboro from Wynnchurch Capital. Wynnchurch Capital will remain a significant minority shareholder. Terms of the private purchase were not disclosed. Rosboro is based in Springfield, Oregon and operates captive sawmills and glued laminated timber (glulam) production facilities.