The Bamfield-based Huu-ay-aht First Nations have agreed to honor a major portion of the B.C. provincial government’s recent decision on old growth forestry deferral. The determination is preliminary and only refers to Huu-ay-aht First Nations interests, not those of any other First Nations. Chief Councilor Robert Dennis Sr. noted that much of the area set aside for deferral is already protected or not planned for harvest within the next two years.
Wood Markets News
New Zealand Log Export Volume and Prices Continue to Decline
New Zealand’s forestry industry continues deal with significant declines in the demand for export logs. China remains New Zealand’s largest customer for logs. Chinese construction companies, several with copious amounts of debt, are teetering on failure, without government intervention. As a result, the expectation for construction activity in China in 2022, is approximately 20% or more below 2021 levels.
Canadian Investment in Building Increases 1.6% in October
Statistics Canada (StatsCan) today (12-9-21) reported that investment in building, after five consecutive months of declines, posted an increase of 1.6% to $17.8 billion (CAD) in October. Quebec led the way with a 3.5% increase. On a constant dollar basis (2012=100), investment in building construction increased 1.6% to $12.3 billion. Residential construction investment rose 1.4% to $12.9 billion in October.
New Zealand Researchers Test Cross-Laminated Timber Walls as a Way to Reduce Earthquake Risk
New Zealand’s goal of becoming carbon-neutral, as well as reducing earthquake risk, has led to new research with broader implications on the use of cross-laminated timber (CLT) walls. According to University of Canterbury’s Seismic Associate Professor Minghao Li and his team, the eco- and cost-friendly alternative to steel and concrete could credibly be used in low-rise buildings.
30-Year and 15-Year Mortgage Rates Down Slightly in the Week Ending December 9, 2021
Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending December 9, 2021. The PMMS reports that the 30-year fixed-rate mortgage averaged 3.10% with an average 0.7 point for the week ending December 9, 2021, down slightly from last week when it averaged 3.11%. A year ago at this time, the 30-year FRM averaged 2.71%.
Weekly Jobless Claims Decline to 52-Year Low in the Week Ending December 4, 2021
The U.S. Department of Labor is reporting that an additional 184,000 Americans made their initial filing for unemployment benefits during the week ending on Saturday, December 4, 2021 — a decrease of 43,000 from the previous week’s revised level. This is the lowest level for initial claims since September 6, 1969, when it was 182,000.
New Zealand Forestry Operators Dealing With Fallout From “Perfect Storm”
China is New Zealand’s largest overseas market for logs. Currently, China accounts for 70-90% of all log exports. Earlier this year, log prices were at near record high levels in New Zealand. In November, the price of logs had sunk to lows not seen since late 2015. The lower prices have resulted in a significantly reduced number of logs heading to ports.
Holmen Wood Products Investing SEK 400 Million in Upgrades to Iggesund Sawmill
Holmen has announced they are investing 400 million SEK in their Iggesund Sawmill. The investment will increase production at the sawmill by 20% and will enable the mill to switch from lower grade joinery spruce to construction timber in both spruce and pine. This will increase the value added and improve the market mix by increasing the share sold to Scandinavian builders’ merchants.
Home Builders “Put the Pedal to the Metal” to Meet 1.35 Million New Home Shortfall
“We just saw the first full year of above-average construction since the mid-2000s housing crash. This isn’t a new boom cycle of new construction so much as it’s an attempt to get even from the last bust. There is still a long way to go to catch up from more than a decade of slow construction, and some markets have longer to go than others.”
Construction Job Openings Continued to Grow in October
In October, the number of unfilled construction jobs increased to 410,000. According to the National Association of Home Builders (NAHB) this is the highest level in the history of the data service, which dates back to late 2000. Hiring in the construction remained strong, rising to a 5.0% rate.