Global pulpwood prices

In the 4Q, the US dollar continued to strengthen against the currencies of all of the countries covered by the WRQ except Japan. This development, together with a downward price pressure on pulplog and wood chips in local currencies because of weakening pulp demand, resulted in a decline of both of the global wood fiber indices. The Softwood Wood Fiber Price Index fell for the second straight quarter to US$105.30/odmt in the 4Q/11. This was down 3.3 percent from the previous quarter, but 1.6 percent higher than 4Q/10. The biggest price declines from the 3Q took place in Western Canada, Brazil, Spain, Germany and Finland.

The Hardwood Wood Fiber Price Index fell 3.6 percent from the 3Q/11 to the 4Q/11, when it averaged US$113.69/odmt. Despite this drop, this was still 5.0 percent higher than in the 4Q/10 and the third highest level ever recorded. The biggest price reductions from 3Q to 4Q occurred in Spain, Finland, Brazil and Chile.

Global pulp markets
Production of market pulp on a worldwide basis was up four percent from October to November, and operating rates reached 91 percent for the 20 of the world’s largest producing countries in the world. For the first 11 months of 2011, world production was 3.7 % higher than the same period in 2010, with production going up the most in Latin America and W. Europe. Prices for hardwood pulp (BHKP) fell more than those for softwood pulp (NBSK) last fall, but they seemed to reach a bottom in early January and have been slowly climbing during late January and early February.

Global lumber markets weak in 4/2011

Softwood lumber production and trade were down in many of the major markets worldwide during the fall of 2011. In the US and Canada, production fell sharply in November by nine and six percent, respectively, from the previous month. Production was reportedly down also in the Nordic countries, New Zealand, Latvia, Austria and Japan. Prices for imported lumber to Japan fell during the last few months in 2011 after having increased for much of the past two years.

Lumber prices fell in both Finland and Sweden during the fall, reaching their lowest levels since early 2010.

In China, a tightening monetary policy with a restricted money supply resulted in reduced activities in the construction sector in the second half of 2011. As a consequence, the importation of softwood lumber to China was down ten percent in the 4Q from the previous quarter.

Bowater Hires Outside Contractors

Montreal based Resolute Forest Products quietly hired contractors from Quebec and New Brunswick for the Bowater Mersey mill less than three months after the province closed a deal to keep the plant running and save jobs. The deal included tax breaks, power rate breaks and concessions from workers, and hiring contractors from outside Nova Scotia has made some uneasy.

Log & Lumber Exports rise

Statistics from the U.S. International Trade Commission show and increase of over 40% in log and lumber exports from Washington, Oregon, California and Alaska in 2011. Log exports were up over 50% and lumber exports 35%. Oregon and Washington have been the largest U.S. exporters of logs since 2000.

Auditor Critical of BC Timber Inventory

NDP Leader Adrian Dix claims the B.C. government is not keeping track of its inventory of timber lands.

B.C.’s Auditor-General in a report issues last week: “Existing management practices are insufficient to offset a trend toward future forests having a lower timber supply and less species diversity in some areas.”
BC foresters say budget cuts have made keeping an accurate inventory impossible

CE standard for wood products recognised in Japan

A CE standard for wood products has been recognised in Japan for the first time. This will simplify exports of construction timber to Japan, for European sawmills. CEI-Bois has worked through EuropeanWood to facilitate exports of wood products to Japan. “Recognition of the CE marked products for 2”x4” construction timber is a major breakthrough in our efforts to harmonise standards between Europe and Japan,” says Jan Söderlind, Chairman of EuropeanWood.

Up until now European producers of 2”x4” products for structural usage needed a JAS certificate (Japan Agriculture Standard). From February 6, the European standard 14081-1 for design strength values for structural lumber is recognised in Japan. CE stamped 2”x4” products can thus be used in the same way as JAS certified products.

Pine and spruce are included in the first step but other species can be added later. Recognised certifying bodies are NTI (Norwegian Institute of Wood Technology) and SP (SP Technical Research Institute of Sweden). Other certifying bodies can apply at a later stage.

EuropeanWood
The European Wood is a joint promotion effort for wood promotion organisations in Europe, representing the wood and wood products industries. FrenchTimber, Norwegian Sawmilling Industry, proHolz Austria and Swedish Wood (a part of the Swedish Forest Industries Federation) are cooperation partners in EuropeanWood.

Affordable Houses

According to the National Association of Home Builders/Wells Fargo Housing Opportunity Index for the fourth quarter of 2011, home affordability is at the highest level in the last 20 years. The data reported on Thursday shows that over 75 percent of all new and existing homes sold in the last quarter were affordable to families earning the national median income. Youngstown-Warren-Boardman, Ohio, Pennsylvania is the most affordable housing market in the country at over 95% affordability. The New York-White Plain-Wayne, NY, NJ area continues to be the least affordable market at 29% affordability.
For afordable houses visist Swede Home Inc.