Drax Group has opened a 360,000-ton pellet production facility in Demopolis, Marengo County, Alabama. The new facility is expected to help meet the growing demand for biomass in the UK, Europe, and Asia. Drax acquired the plant, which was already under construction, as part of its acquisition of Pinnacle Renewable Energy.
Wood Markets News
Canadian Investors Expect the Bank of Canada to Raise Interest Rate in Half-Percentage-Point Increments
As the outlook for Canada’s inflation rate continues to worsen, Canadian investors are betting that the Bank of Canada (BoC) will begin hiking its key interest rate in half-percentage-point increments, with the first of rarely used upsize moves possibly coming as soon as this month.
Vietnam’s Wood Industry Impacted by the Russia-Ukraine War
Vietnam has limited trade interaction, import or export, with either Russia or Ukraine. In 2021, Vietnam imports from Russia were valued at $55 million (USD), or about 2% of the total wood materials imported by the country. During the same time period, Vietnam exports to Russia were $7.3 million and to Ukraine even of a lesser value.
Veolia Launches World’s Largest Biorefinery to Produce CO2-Neutral Bio-Methanol From Wood Pulp
Veolia has launched the world’s largest biorefinery project which will be producing CO2-neutral bio-methanol from a pulp mill located in Finland. Although almost completely unexplored to date, the project will allow for the unlocking of the potential of this alternative source of feedstock for biofuel.
Mortgage Applications Drop in the Week Ending April 1, 2022, Marking the Fourth Consecutive Decline
According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending April 1, 2022, the Market Composite Index (a measure of mortgage loan application volume) declined -6.3 % on a seasonally adjusted basis from one week earlier.
EU Poised to Expand Sanctions on Russia, Including Wood Import Ban
The European Commission is proposing a fifth package of sanctions against Russia, Commission President Ursula von der Leyen said on Tuesday (4-5-22). The package would expand sanctions on Russian banks, block Russian vessels from EU ports, ban targeted exports and imports, and prohibit participation of Russian companies in public procurement.
Construction Labor Shortage is Nothing New to Residential and Non-Residential Builders
The current labor shortage across the U.S. is nothing new to the construction industry. During the homebuilding boom in the early 2000s, there was a lack of construction workers. The Great Recession and the resulting housing market collapse, which in turn created the foreclosure crisis, caused that shortage to end.
FHA Proposes 40-Year Mortgage Loan Modification Option
The U.S. Department of Housing and Urban Development (HUD) is asking for mortgage industry input on a proposed rule change that it offered late last week, which would change repayment provisions for FHA borrowers. The change would allow lenders to recast a borrower’s total unpaid loan for an additional 120 months.
Canadian Sawmill Production Up Month-Over-Month but Down Year-Over-Year in January 2022
On Friday (4-1-22), Statistics Canada (StatsCan) reported lumber sawmill production for January 2022. Sawmills produced 4,346.3 thousand cubic meters of lumber in January 2022. That is 11.3% above December 2021 production levels but down by 9.4% year-over-year (January 2021 – January 2022).
Canadian Building Permits Increase 21% in February
On Monday (4-4-22), Statistics Canada (StatsCan) reported that the total value of building permits climbed 21.0% in February, with British Columbia leading the way with a 130.2% increase. On a constant dollar basis (2012=100), the total value of building permits increased 22.1% in February.