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.
Wood Markets News
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.
UPM Suspends Deliveries to Russia
As the result of Russia’s invasion of Ukraine, UPM-Kymmene Oyj, the Helsinki, Finland-based forest industry company, has announced that it intended to temporarily cease deliveries to Russia. While the forest industry is not directly targeted by the international sanctions at the moment, sanctions against the financial sector may impact UPM’s or its customers’ businesses and transactions in Russia.
Canadian Residential and Non-Residential Building Permits Declined in January 2022
Statistics Canada (StatsCan) reported today (3-4-22) that the total value of building permits in January dropped by -8.8% to $10.1 billion (CAD). Declines were reported in both the residential and non-residential sectors. On a constant dollar basis (2012=100), the total value of building permits decreased -8.2%.
Metsä Group Suspends Wood Production Operations at their Svir Sawmill in Russia
Metsä Group, the Helsinki, Finland-based forest industry group, has announced that it has suspended all wood production operations at their Svir sawmill in Russia. The Metsä Svir sawmill produces sawn timber for a range of industries.
U.S. Nonfarm Payroll Increases by 678,000 in February; Unemployment Edges Lower to 3.8%
The U.S. Bureau of Labor Statistics (BLS) reported today (3-4-22) that total nonfarm payroll employment increased by 678,000 in February, following increases of 467,000 in January and 199,000 in December. Even with February’s gains, nonfarm payroll employment is still down by -1.4 million, or -1.4%, from its pre-pandemic level in February 2020.