Fannie Mae on Monday (3-7-22) released its Home Purchase Sentiment Index® (HPSI) for February 2022. The HPSI for February increased by 3.5 points to 75.3 in February. However, affordability constraints continue to drive consumers’ perception of the housing market.
Wood Markets News
The NFIB’s Small Business Optimism Index Declines for Second Consecutive Month in February 2022
The National Federation of Independent Business (NFIB), one of the largest small business associations in the U.S., reported today (3-08-22) that their NFIB Small Business Optimism Index decreased by -1.4 points to a reading of 95.7 in February, the second consecutive month below the 48-year average of 98.
New Brunswick Private Timberland Log Sellers Find Better Prices for their Logs in Maine
New Brunswick, Canada lumber mills are supplied mostly from timber cut on publicly owned Crown land. In turn, private sellers contend that because the New Brunswick government does not raise the price it charges for trees to match rising lumber prices, as most provinces do, the prices they can charge mills are kept artificially low.
Pacific BioEnergy Pellet Plant Permanently Closes
In December of 2021, Pacific BioEnergy announced that after 28-years of continuous operation it would be permanently closing its wood pellet plant in the Prince George B.C. area. PacBio said it had reached an agreement to assign some of its assets, including wood pellet long term sales contracts to the Drax Group.
PEFC Designates Wood From Russia and Belarus as “Conflict Timber” Not to Be Used in Any PEFC-Certified Products
Following a meeting of PEFC (Program for the Endorsement of Forest Certification) organization’s board last week, wood from Russia and Belarus have been designated as “conflict timber” and banned from use in all PEFC-certified products following the invasion of Ukraine.
Florida Panhandle Weekend Wildfires Fueled by Hurricane Michael’s 2018 Devastation
According to the Florida Forest Service (FFS), in 2018 Hurricane Michael roared on shore in Florida’s Panhandle, leaving behind approximately $25 billion in damage in the U.S. and destroying nearly 72 million tons of trees across nearly three million acres of timberland. Those destroyed trees are currently the fuel source for two massive wildfires.
Metsä Fibre to Discontinue Lumber Production at Kyrö, Finland Sawmill in Summer 2022
Metsä Fibre, part of Metsä Group, announced today (3-7-22) that it has started negotiations and plans to discontinue the lumber production in Kyrö, Finland in the summer of 2022. The annual production capacity of the Kyrö sawmill is approximately 230 thousand m3 pine lumber, and the annual wood consumption is approximately 450 thousand m3.
Environmental Groups Call for a Ban on the Use of Russian and Belarusian Timber
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.
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.