May Housing Starts Plummet and Softwood Lumber Prices Follow
By: John Greene
US homebuilding plummeted to a 13-month low in May, and prices for finished softwood lumber followed suit as the housing market cools amid surging mortgage rates and crippling inflation.
Locating Your Next Mill: Project Planning With SilvaStat360’s New Virtual Mill Tool
By: Forest2Market
Understanding the intricacies that underpin a hypothetical mill’s location and delivered wood price, as well as its position, advantages, and disadvantages vs. the market is imperative for the mill’s success and profitability, and it helps shape decision-making for the future.
European Sawlog Price Index Reached All-Time High in 1Q2022
By: Håkan Ekström
Global sawlog price changes were mixed in 1Q22 with quarter-over-quarter (QoQ) increases in North America and Eastern Europe, while prices declined in Central and Northern Europe, reports the Wood Resource Quarterly. While the price changes from the 4Q2021 to 1Q22 have only been modest, the current price levels are much higher than they were a year ago.
New Markets for Wood Products Help Preserve Forests for Future Generations
By: Forest2Market
When forestland ownership becomes uneconomical, the risk for converting the land to other uses increases. With such conversion, the forest is lost forever. Keeping the economics of private forest ownership strong, including the utilization of low-value forest materials, is a key component in preserving the proven relationship between environmental and economic interests of the forest.
The Logging Safety Quandary: Why the Number 22.8 Matters
By: Forest Resources Association
Logging is an inherently dangerous profession. It always has been and always will be. However, this fact should not discourage us from trying to advance safety practices in the logging sector.
New Mexico Wildfire Draws Heat on Use of Prescribed Fire
By: Nick Smith
In May, USFS Chief Randy Moore announced a pause on prescribed fires on National Forest lands pending a 90-day review of protocols and practices ahead of planned burning operations this fall.
Delivered Wood Prices Spike in the Lake States Amid Inventory Crunch
By: John Greene
After spending the better part of two years in the doldrums – a period which saw a significant dropofff in demand due to the closure of two large regional paper mills – delivered wood fiber prices in the Lake States have turned significantly higher in 2022. Prices are up 10% since the beginning of 1Q2022 and are now at their highest point in more than three years, and the trend shows no signs of abating.
Chinese Demand Drove Global Trade of Hardwood Chips Higher in Early 2022
By: Håkan Ekström
In 2021, the world’s shipments of wood chips reached almost 35 million m3, close to the highest on record. Significant expansion of pulp capacity in China combined with a lack of domestic wood fiber has driven the global increase in traded wood chips over the past decade. About four-fifths of the trade was hardwood chips in 2021, predominantly destined for pulpmills in Asia, while the remaining volume was softwood chips.
Will More M&A Take Place in China’s Paper Industry?
By: Amy Chu
China has become the largest producer since 2011, with far more capacity than most other countries. However, the industry in China is much more fragmented than in other countries. When we take a close look at the top 5 companies’ market share in the top 5 countries, as illustrated below, we can see that in China, the top 5 players only account for less than 30% of total market share – which is much lower in comparison to other countries. It’s obvious there is room for the industry to consolidate, but the question is which grade has the most potential for consolidation?
Rate of Growth in Forest Industry Slows Amid Inflationary Pressures
By: Forest2Market
Total industrial production (IP) increased 1.1% (+6.4% YoY) in April—the fourth consecutive MoM gain of at least 0.8%. Manufacturing output rose 0.8% (+0.5% if excluding the 3.9% climb in motor vehicles and parts). The index for utilities moved up 2.4%, the result of respective increases of 2.1% (electric) and 4.4% (natural gas). Mining output rose more than 1.5% for a second consecutive month; that index was +8.6% YoY but still 3.8% below its pre-pandemic (February 2020) level.