Sunday, October 10, 2021 marked the three-year anniversary of Hurricane Michael’s devastation of the Florida panhandle’s logging industry. The Florida Forest Service (FFS) estimates that Hurricane Michael damaged approximately 10-15 years worth of timber supply.
Wood Markets News
Remodeling Market Index Up Year-Over-Year Despite Supply Chain and Labor Availability Headwinds
The National Association of Home Builders (NAHB) / Royal Building Products Remodeling Market Index (RMI) posted a reading of 87 in Q3 of 2021, up 5-points from Q3 of 2020. The HMI reading of 87 is a sign of positive residential remodelers’ sentiment for projects of all sizes.
Canadian Investment in Building Construction Declines for Fourth Consecutive Month in August
Statistic Canada (StatsCan) reported on Wednesday (10-13-21) that investment in building construction declined for the fourth consecutive month, falling -2.0% in August to $17.7 billion (CAD). Residential construction was down -2.9% for the month, while investment in non-residential construction edged up 0.6%.
Mortgage Rates Move Back Above 3% in the Week Ending October 14, 2021
Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending October 14, 2021. The PMMS reports that 30-year fixed-rate mortgage averaged 3.05% with an average 0.7 point, up from last week when it averaged 2.99% percent. A year ago, at this time, the 30-year FRM averaged 2.81%.
Producer Price Index for Final Demand Increases 0.5% in September
The Bureau of Labor Statistics (BLS) reported today (10-14-21) that the Producer Price Index (PPI) for final demand, seasonally adjusted, increased 0.5% in September. Final demand prices rose 0.7% in August, 1.0% in July, 1.0% in June, 0.8% in May, 0.6% in April, 1.0% in March, and 0.5% in February.
Weekly Jobless Claims Decline in the Week Ending October 9, 2021
The U.S. Department of Labor is reporting that an additional 293,000 Americans made their initial filing for unemployment benefits during the week ending on Saturday, October 9, 2021. This is a decrease of 36,000 from the previous week’s revised level and the lowest level for initial job claims since March 14, 2020.
Segezha Group to Purchase All Assets of Inter Forest Rus. for $512 Million
Segezha Group has announced that it has agreed to purchase the assets of LLC Inter Forest Rus from Bonum Capital Ltd for $515 million. Inter Forest’s assets include wood processing and logging enterprises as well as four woodworking plants, one plywood plant, a river fleet of 98 vessels, and a substantial forest resource base in the Krasnoyarsk and Irkutsk regions of Russia.
Impact of Timber Lost to B.C.’s 2021 Summer Wildfire Season Could be Both Extreme and Long Lasting
Although the extent of the damage has yet to be fully assessed, estimates place the number of hectares burned at 900,000 hectares or 9,000 square kilometers. Depending on the severity of the burn, trees in fire zones may still be harvestable, but there is often a timeframe before harvest loses viability.
Koskisen Group Announces 48 Million Euro Investment in Kärkölä, Finland Facility
Koskisen Group, a family-owned Finnish sawmill and panel industry leader, has announced a 48 million Euro investment in Kärkölä, Finland. With production scheduled to start in the summer of 2023, the unit’s new annual production will initially be 400,000 m3 of softwood sawn timber.
Mass Timber Metro Station Under Construction in Naples, Italy as Part of a Major Infrastructure Upgrade
EMBT, the Barcelona-based studio, has revealed images of a mass-timber metro station which is currently under construction in the Centro Direzionale area of Naples, Italy. The Naples Underground Central Station is being built in a neighborhood designed by Japanese architect Kenzo Tange as part of a major upgrade to the city’s infrastructure.