On Thursday, January 6, 2022, the Department of Commerce (DOC) amended its notice of final results of the 2019 administrative review of the countervailing duty (CVD) order. In the amendment, the DOC stated they had incorrectly calculated J.D. Irving and West Fraser’s CVD rates. The new CVD rates are 3.46% and 5.08%, respectively.
Wood Markets News
Southern Pine Beetle Discovered in Maine, Placing Maine’s Pitch Pine Barrens at Risk
The southern pine beetle, one of the most destructive forest pests in the Southeast U.S., which has already destroyed millions of acres in its native South, has made its way to the State of Maine. The beetle was discovered in Waterboro, Maine last fall, and scientists say the ecosystem of Maine’s pitch pine barrens is now at risk.
Jartek Invest Oy to Provide New Green and Dry Sorting Lines to Segezha Group’s JSC Onezhsky LDK Wood Processing Facility in Arkhangelsk, Russia
Jartek Invest Oy, a leading supplier in Finnish sawmilling technology, has announced that it has just signed a contract to deliver green and dry sorting lines to Segezha Group as part of a large-scale modernization of their JSC Onezhsky LDK wood processing facility in the Arkhangelsk region of Russia. The new lines will make the operation more efficient and help to develop wood processing and improve product quality.
Consumer Price Index Increases 0.5% in December and 7.0% Year-Over-Year
The U.S. Bureau of Labor Statistics (BLS) reported on Wednesday (1-12-22) that the Consumer Price Index for All Urban Consumers (CPI-U) increased 0.5% in December on a seasonally adjusted annual basis. This follows a 0.8% increase in November and a 0.9% increase in October. Over the past 12-months, the all-item index has increased 7.0% before seasonal adjustment — the largest 12-month increase since the period ending June 1982.
Mortgage Applications Increase in Week Ending January 7, 2022
According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending January 7, 2022, the Market Composite Index (a measure of mortgage loan application volume) increased 1.4% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 46% compared with the previous week. The Refinance Index decreased -0.1% from the previous week.
Mortgage Delinquency Rates Reach Pre-Pandemic Levels in October
According to CoreLogic Loan Performance Report for October, mortgage delinquency rates reached their pre-pandemic levels in October. The drop in the delinquency rate is being credited to an improving labor market and home equity increases. According to the report, in October, 3.8% of mortgages were delinquent by at least 30 days, including foreclosure. CoreLogic’s expectations are that rates will continue to decline during 2022.
FEA’s Paul Jannke Provides Expert Analysis and Insight into North America’s Housing and Lumber Markets in 2022
With the U.S. economy and employment growing robustly in 2021 and 2022, interest rates remaining low by historical standards, many of the supply-side constraints that held back housing over the past half-decade resolved, and high pent-up demand, Jannke says that he expects housing starts will continue to grow from an average of 1.584 million units in 2021 to 1.618 million in 2022. Ultimately, he expects lumber prices will continue to be volatile in 2022.
Binderholz Group Completes Acquisition of British BSW Timber Company
Binderholz UK Holding GmbH, a subsidiary of the Austrian Binderholz Group, is reporting that it has successfully completed the acquisition of the British BSW Timber Company, based in Earlston, Scotland. With the purchase, Binderholz Group becomes Europe’s largest sawmill and solid wood processing industry company. It is estimated that with the acquisition Binderholz Group, in 2022, will have a cumulative annual turnover of €2.6 billion and around 5,000 employees.
Segezha Group’s Sokol Plant Earns Conformité Européenne (CE) Certification for CLT Panels
The Segezha is reporting that their Sokol CLT plant has successfully passed its Conformité Européenne (CE) certification for its cross-laminated timber (CLT) panels. The CE certificate was obtained after a field audit performed by employees of HolzForschung Austria, the largest Austrian wood research and testing institute. The certificate confirms that the enterprise has deployed modern practices to verify that the quality of its products meets European requirements.
Mortgage Credit Availability Increased in December
According to the latest Mortgage Bankers Association’s Mortgage Credit Availability Index (MCAI), which analyzes data from Ellie Mae’s AllRegs® Market Clarity® business information tool, mortgage credit availability increased in December. The MCAI rose 0.8% in December to a reading of 125.9. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit.