The Bureau of Economic Analysis (BEA) released today (11-24-21) its “second” estimate of real gross domestic product (GDP) for Q3 2021. The BEA reports GDP was at an annual rate of 2.1%. The GDP estimate released today is based on more complete source data than were available for the “advance” estimate which was issued last month.
Wood Markets News
Mortgage Applications Increase in the Week Ending November 19, 2021
According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending November 19, 2021, the Market Composite Index (a measure of mortgage loan application volume) increased 1.8% on a seasonally adjusted basis from one week earlier.
Weekly Jobless Claims Decline Further in the Week Ending November 20, 2021
The U.S. Department of Labor is reporting that an additional 199,000 Americans made their initial filing for unemployment benefits during the week ending on Saturday, November 20, 2021. This is a decrease of 71,000 from the previous week’s revised level, and it’s the lowest level for initial job claims since November 15, 1969.
U.S. Department of Commerce Releases Final Determination for the Second Administrative Review
On November 24, 2021 the U.S. Department of Commerce released its final determination of the antidumping and countervailing duty rates on softwood lumber imports from Canada. The rates (below) will take effect once published in the federal register, which is expected to occur on November 30, 2021.
Interfor Corporation Announces Agreement to Purchase EACOM Timber Corporation
Interfor Corporation announced on Tuesday, November 23, 2021 that it has reached an agreement with an affiliate of Kelso & Company to acquire 100% of the equity and interests of EACOM Timber Corporation. The purchase price is C$490 million on a cash and debt-free basis, which includes C$120 million of net working capital.
Canadian Pacific Railway to Reopen Line Between Kamloops and Vancouver on Tuesday
The Canadian Pacific Railway (CP) said on Monday (11-22-21) that it expects to reopen its rail line from Kamloops to Vancouver by midway on Tuesday (11-23-21). According to a statement released by Keith Creel, CP president and CEO, the railway will be working to “clear the backlogs as quickly and efficiently as possible.”
Segezha Group Supplying Japanese Market with Glue Laminated Timber and Structural Beams
Segezha Group, a subsidiary of Sistema PJSFC, has begun supplying the Japanese market with glue laminated timber and structural glue laminated beams. The first shipment (10 containers) shipped from the Sokol Woodworking Plant JSC and was sold to the Sojitz Building Materials Corporation.
Kronospan to Invest 180 Million Euros to Build New Factory in Spain
Kronospan, the Austrian multinational corporation dedicated to the manufacturing and distribution of wood panels, plans to invest 180 million euros to build a new factory in in the Catalunya Sud industrial estate in Tortosa (Tarragona), Spain. The announcement of the new factory is the largest foreign investment in Terres de l’Ebre.
Multifamily Condo Construction Projects Increased Modestly in Q3 2021
According to the latest quarterly U.S. Census Bureau data, with further analysis provided by the National Association of Home Builders (NAHB), the market share of rental units of multifamily construction starts declined to a reading of 93.4% in Q3 2021. This is the lowest share since Q1 2020. From a historical perspective, the lowest share of 47% was set during Q3 of 2005 during the condo building boom.
Home Value Appreciation Slows for Third Consecutive Month in October
Home value appreciation slowed for the third consecutive month in October 2021, according to Zillow’s latest Home Value Index (ZHVI). However, home values rose 1.3% above September, slower than the all-time high monthly appreciation of 2% in July 2021. Zillow has found that the typical home value in the U.S. is now up to $312,728.