The U.S. Bureau of Labor Statistics (BLS) reported on Friday (12-10-21) that the Consumer Price Index for All Urban Consumers (CPI-U) increased 0.8% in November on a seasonally adjusted basis after rising 0.9% in October. Over the past 12-months, the all-item index has increased 6.8% before seasonal adjustment. The largest 12-month increase since the period ending June 1982.
Wood Markets News
lida Group Holdings Buys Majority Stake in Russian Forest Products
Iida Group Holdings (IGH), a leading Japanese real estate development firm, announced on Wednesday (12-8-21) that it has received Russian Government approval and is buying a majority stake (75%) in Russian Forest Products for nearly $530 million. IGH says the acquisition will provide the company with access to one of the world’s largest forests, spanning roughly four million hectares in the Russian Far East.
Huu-ay-aht First Nations to Honor Major Portion of B.C. Government’s Old-Growth Forestry Deferral
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.
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.