December 10, 2013 - Steady Demand but Rising Output Delays the Peak of the Lumber "Super-Cycle". New WOOD MARKETS five-year forecast calls for continued volatility as North American lumber market recovers, but still calls for record prices to occur.
With the uncertainty surrounding the US governement shutdown in October and the potential of a second shutdown in January 2014, the US economic recovery continues to be more of a wildcard... MORE
November 5, 2013 - Recent B.C. Interior sawmill closures were anticipated - and these two mills were previously forecast to close - and still more mill closures can be expected as a result of the mountain pine beetle epidemic
Unprofitable sawmilling economics and shelf-life of 10+-year old dead trees (reducing sawlog supplies) the main reason for current and future sawmill closures.
This is an update to previous news releases that WOOD MARKETS has provided in relation to reduced timber harvests and sawmill/plywood production in the B.C. Interior as a result of the mountain pine beetle. MORE
BC Mountain Pine Beetle: Evolving Impacts & Opportunities (2012)
B.C Interior Mountain Pine Beetle Attack: Impact & 20-Year Outlook (2010)
September 30, 2013 - New Report Analyzes Russia's Forest Industry Competitivenss and Future Impact on Global Timber Markets.
The Russian government continues to provide huge incentives for the development of timber harvesting and log processing industries. The impact is beginning to show with growing investments in wood products manufacturing facilities and exports of manufactured products. MORE....
Available now: Russia: Forest Industry Competitiveness & Export Outlook to 2017 Report.
August 14, 2013 - North America, led by US South, achieved highest global sawmilling earnings in 2012 and Q1/2013; lower earnings were more equally recorded at top-quartile mills in the US West, Western Canada and Eastern Canada.
Global Cost Benchmarking Report on delivered logs, sawmilling and lumber in 32 countries and regions revewals global winners and losers as some markets improved modestly in 2012 and Q1/2013, but weak lumber prices and/or rising log costs had the greatest drag on other regional earnings. MORE
July 25, 2013 - China's Log & Lumber Imports Increase in H1/2013. New Zealand is now China's largest log supplier (over Russia); Russia regains its position as China's largest lumber supplier (over Canada). The next issue of WOOD MARKETS' China Bulletin will highlight China's rebounding growth in log and lumber imports during the first half of 2013, continuing the trend of a steady recovery since the slowdown that occurred in the first half of 2012. MORE
March 21, 2013 - Top 20 Lumber Producers Report Indicates Renewed Industry Optimism. The latest WOOD MARKETS annual survey of the "top 20" Canadian and US softwood lumber producers shows an uneven trend across North American for 2012: US production increased 6.3%, whereas Canadian production increased only 0.4%. Rapidly increasing demand outpaced mill output in 2012, while blockbuster corporate acquisitions and catastrophic mill fires further altered the production landscape.... MORE
March 1, 2013 - Lagging Stud Lumber Demand to Triple. As U.S. new residential lumber demand more than triples from 2009 to 2017, lagging stud lumber output and capacity is expected to create huge supply chain dislocations with soaring prices as the outcome. Are you ready? ... MORE
February 6, 2013 - Rebound in China's demand for logs and lumber fuels a mini-recovery in H2/2012. China's log and lumber imports post gains in the second half of 2012, despite negative year-over-year growth. The February issue of WOOD MARKETS' China Bulletin summarizes China's rebounding growth in log and lumber imports, especially since the start of the fourth quarter.... MORE
December 10, 2012 - North American lumber prices forecast to soar in 2013 and reach record highs in 2014. New five-year outlook shows that supply and demand conditions in wood products for the long-awaited "super-cycle" are now taking hold, with the full impact still some 3+ years away! With the return of a demand-driven wood products market in 2012 - due to rapidly increasing housing starts in the U.S. - it is now forecast .... MORE
November 20, 2012 - Wood products imports to grow as China remains the global gorilla. New five-year outlook shows no slowdown in wood products imports, but China's housing and economy will need additional goverment stimulus to get construction moving later in 2013.
WOOD MARKETS has just released the third edition fo The China Book - Wood Products Industry and Market Review: Outlook to 2017, which looks at the widening log and lumber supply imbalance and potential shortages facing China. At the heart of this report is the key question of: where will China get its wood as the global supply dynamics for imported logs and lumber tighten in the next few years? MORE
August 10, 2012 - China’s second quarter imports post gains over first quarter, but year-over-year trends show flat to slightly lower progress. Recently released statistics indicates that a ‘soft landing’ is being achieved in China’s construction industry. The August issue of WOOD MARKETS’ China Bulletin for August, released today, shows a number of positive statistical trends about what is going on in parts of China’s economy as well as in the log and lumber markets in China. In fact, the bulk of the data suggests that China’s wood product sector is expanding after hitting bottom in the first quarter of 2012... MORE
May 8 , 2012 - Canadian Lumber Exports to China Increase by 3.7% in the first quarter of 2012, despite overall residential construction slowdown in China. Canada (mainly B.C.) captrues a 47% market share of China's total imported softwood lumber; Russia is second at 35%.... MORE
April 26, 2012 - B.C. Interior Annual Allowable Timber Harvest to Fall from 60 million m3 to 40 million m3 and will support a smaller forest products industry. While more capacity rationalization is inevitable, timber and growth opportunities may be viable in other regions of B.C.
New and updated report outlines the ongoing timber and sawmill impacts in the B.C. Interior resulting from the MPB epidemic, the emerging downstream “supply gap” in North American lumber markets and opportunities that may exist in B.C. “after the beetle”..... MORE
April 23, 2012 - U.S. Moulding Consumption to Rebound in 2012 as part of a forecasted five-year bull run in prices and demand. The moulding market finally bottoms out in 2011, after four consecutive years of declining consumption.
Some of the implications related to the rebound in moulding demand that is forecast in the 7th edition of the acclaimed U.S. Moulding Market Outlook: 2012-2016 report include .... MORE
April 16, 2012 - 2011 ‘Billion Board Foot Club’ shows modest increases in global softwood lumber production as markets remain mixed. West Fraser, Weyerhaeuser and Canfor remain the top 3 global lumber companies with respectable gains over 2010.
The latest WOOD MARKETS annual survey of the “Billion Board Foot Club” that features the largest global lumber producers shows that West Fraser Timber has retained its title of being the world’s largest softwood lumber producer in 2011 with 4.91 billion board feet (bf; or 7.9 million m3 net). Second place was close: Weyerhaeuser’s softwood lumber operations in the U.S. and Canada exceeded those of Canfor by just 20 million bf (0.5%) in 2011 with 3.59 billion bf.... MORE
March 20, 2012 - Canada & U.S. "Top 20" Lumber Producers for 2011 show modest growth and ongoing consolidation.
The latest WOOD MARKETS annual survey of the "top 20" Canadian and U.S. lumber producers shows that West Fraser Timber has retained its title of being North America's largest softwood lumber producer in 2011 with 4.91 billion board feet (bf; or 7.8 million m3 net). The company was also Canada's largest producer, while Weyerhaeuser was the largest U.S. lumber producer in 2011 amd North America's second largest lumber producer with 3.56 billion bf.... MORE
December 7, 2011 - U.S. Softwood Lumber Demand and Prices Poised to Rise Slowly in 2012, but gaining momentum in 2013 as demand climbs - price surges to start in 2014! Softwood lumber outlook calls for modest short-term gains as the U.S. economy and housing starts recover slowly and steadily - though still risks ahead.
The ongoing U.S. housing market slump is expected to linger for much of 2012 before a steady acceleration of new house construction starts to occur in 2013. However, there are still a number of domestic and global road blocks that could further delay or even derail this already long-delayed recovery.... MORE
November 18, 2011 - Huge Reductions in the BC Interior Timber Harvest from the Mountain Pine Beetle Epidemic will Create Winners, Losers and Casualties
New Dynamics & Revealing Outcomes will be Modeled and Profiled in a new BC Mountain Pine Beetle Update Report to be released in early 2012
In the spring of 2010, International WOOD MARKETS Group released the first in-depth analysis and outlook on the impact of the mountain pine beetle (MPB) on the BC Interior forest industry. Based on the collaborative work of the project team and the detailed input and assessments of the three leading forest industry consulting companies in BC, the BC Interior – Mountain Pine Beetle Attack: Outlook to 2028 Report predicted that the.... MORE
August 23, 2011 — Highest North America sawmilling earnings in 2010 were achieved in Western Canada and the U.S. South, while poorest results were found in Eastern Canada; U.S. West was mixed
Global Cost Benchmarking Report on delivered logs, sawmilling and lumber in 32 countries and regions reveals global winners and losers as markets improve modestly in 2010 and Q1/2011, but weak lumber prices and/or rising log costs had the greatest drag on regional earnings.
Even higher earnings were achieved in other countries, including South Africa, Australia and the Baltic States. These and many other financial and operating results .... MORE
July 28, 2011 - Canadian (mainly BC) lumber exports to China increase by 96.6% in first half of 2011 compared to same period in 2010!
China poised to import approximately 35% of BC's total lumber production in 2011.
Chinese softwood lumber imports from Canada totalled 3.14 million m3 (about 1.8 billion bf - nominal) for the first six months of 2011 compared to 1.6 million m3 (about 950 million bf - nominal) for the same period in 2010. Further details will be released in WOOD MARKETS' China Bulletin - August 2011 issue.... MORE
May 16, 2011 - WOOD MARKETS’ Vancouver Global Conference predicts a ‘Super-Cycle’ of soaring prices in the next few years
Speakers and delegates at WOOD MARKETS’ Global Wood Products Conference agree that the mid-term outlook looks spectacular, but the short term will continue to face weak demand and over-supply.
Factors that will create a ‘bull market’ in logs and wood products with dramatically higher prices appear to be falling into place. According to speakers at the May 10 Global Wood Products: Industry and Markets Conference in Vancouver that was planned and organized by International WOOD MARKETS Group, North American log and lumber supplies could be falling by the middle of the decade just as U.S. wood products demand is spiking from a rebound in housing starts with China still expected to be a huge importer....MORE
March 17, 2011 - Top 40 North America Lumber Companies Improve Output in 2010 by 13% - West Fraser remains Largest Producer
China responsible for larger gains at mills in the West; Smaller gains occurred in the East and South
The WOOD MARKETS annual survey of “top 40” Canadian and U.S. softwood lumber producers in 2010 shows that output improved by 13% as compared to the low point in 2009.
West Fraser easily retained its position as the largest producer of softwood lumber in North America at 4.68 billion bf (10% of all output), while Weyerhaeuser (#2) again ... MORE
March 1, 2011 - U.S. moulding consumption to surge into a five-year bull run with prices spiking about 2014
Moulding market breaks out of three-year nosedive but only a modest improvement is expected in 2011.
International Wood Markets Group announces the release of the 6th Edition of its acclaimed U.S Moulding Market Outlook: 2011- 2015. North American and offshore moulding producers endured three consecutive years of massive reductions in moulding demand that has left only the most strategic, well-financed and efficient producers able to benefit from improving builder demand and repair and remodeling consumption.
Some highlights from the report include: MORE
February 8, 2011 - China's Log & Lumber Imports Soar in 2010, Creating Huge Opportunities for Exporters
China’s Imports Soar in 2010 - led by Logs (+22%) and Lumber (+49%). Chinese wood products production increases 20%, fuelling imports from Russia, Canada, New Zealand and the USA. Final year-end statistics show that China’s imports of logs and lumber have soared to new heights in 2010 as compared to 2009. .... MORE
January 6, 2011 - U.S. lumber prices to spike as a tight U.S. supply/demand balance starts to emerge
The North American lumber market is poised to take-off due to recovering U.S. housing starts, improving repair and remodelling activity, and surging demand in China. While the timing is probably the only question, increased price volatility is already a reality where prices are expected to touch the US$500/Mbf level in the next two to three years ..... MORE
December 6, 2010 - Proposed Russian log export tax reductions rattle many log and lumber exporters
Russia’s surprise move to reduce or eliminate log export duties has caught many industry players and traders by surprise and off guard. Most industry observers were more focused on when the log export tax on softwood logs would be increased towards 80% and not reduced from its current 25% level. The news has created nervousness for some companies ....... MORE
August 30, 2010 - Tight wood supplies in China creating major opportunities for BC and Russian lumber exporters
Five-year outlook report estimates that China will need to double its lumber imports by 2015 to meet domestic demand. BC and Russia are considered to be the two biggest winners as China's ongoing demand for lumber imports continues to expand .... MORE
July 13, 2010 - Wood Deficit in China to Create Major Opportunities for Pacific Rim Exporters
Big Winners expected to be BC and Russian Lumber, and New Zealand and West Coast North America logs. New five-year outlook report quantifies China's growing demand for imported wood and shows how tight supplies will drive prices higher for exporters .... MORE
April 19, 2010 - BC Interior "Mountain Pine Beetle Attack" Report preview generates major North American debate
To address some of the misinterpretations of the report's findings and to provide additional perspectives on one of the world's greatest environmental catastrophies, the following four topics are further clarified .... MORE
March 17, 2010 - B.C. Interior timber and wood products industry nearing its peak output as the full impact of the mountain pine beetle takes hold – production to peak about 2013
New report outlines the devastating impacts in the B.C. Interior from the ongoing MPB epidemic in the short to long-term, and the emerging downstream “supply gap” on North American lumber and panel markets.
March 17, 2010 - Earthquakes in Chile Impacting Clearwood Pine Lumber and Moulding Market
With the sudden disruption to Chile's supply line, the run on prices has already started in Chlean supply including softwood plywood, finger-joint and MDF mouldings ........ MORE
December 16, 2009 - U.S. Moulding Market, looking for better results in 2010
“Despite the dramatic number of domestic and offshore plant closures and curtailments in recent years, moulding producers simply could not reduce their capacity fast enough to prevent prices from falling to below break-even for extended periods in 2008/2009....." MORE
November 30, 2009 - U.S. OSB to benefit from rising demand, but severe excess capacity is expected to dampen gains in operating rates and prices until 2011 at the earliest. Softwood plywood and OSB outlook calls for modest gains, but still heavily dependent on U.S. economy and housing starts recovery ..... MORE
November 11, 2009 - U.S. softwood lumber demand and prices poised to rise slowly in 2010 but gaining momentum in 2011 as demand climbs - price surges to follow!
Softwood lumber outlook calls for gains as the U.S. economy and housing starts to recover slowly and steadily - but still some risks ahead ... MORE
August 12, 2009 - China still importing (and requiring) huge volumes of Russian logs and lumber
China's domestic wood consumption is closely coupled to Russian imports; supplying nearly 85% of China's total softwood log imports in 2008 and through 2009... MORE
July 10, 2009 - U.S. South's 'average' softwood sawmills acheive the best North American earnings results
North American results show earnings at Eastern Canada sawmills were the worst, Western Canada sawmills were in the middle of the pack, but U.S. sawmills are considered the winners in a terrible year .... MORE
June 23, 2009 — Softwood sawmills around the globe incur EBITDA losses averaging US$-12/m3 in 2008 – worsening in Q1 2009
Biggest losses seen in Canada -- especially in Eastern Canada
Sawmills around the world experienced some of the worst losses in recent history during 2008 and early 2009. The global average losses (on an EBITDA basis) were US$-12/m3 (net lumber basis) in 2008 and fell even further in Q1 2009 to US$-14/m3. By comparison in 2006, the global industry showed a profit of US$8/m3. These and other figures were released today in the comprehensive Global Lumber/Sawn Wood Cost Benchmarking Report—2008 & Q1/2009, a biannual study jointly prepared by International WOOD Markets Group, PricewaterhouseCoopers (PwC), and The Beck Group... MORE
May 13, 2009 Global Wood Industry Trends & Statistics - Attaining competitive advantage by better analyzing global supply/demand forces
Globalization of the wood products industry continues at an unprecedented rate, with new opportunities continuing to emerge in both good and bad markets. Importing countries continually switch from traditional exporters to new suppliers as economics, currency, logistics, freight rates, politics and customer preference continue to change. Today’s successful wood products manufacturing, distribution and sales/marketing companies must constantly adjust their market and product-sourcing tactics in order to keep up with their suppliers and stay ahead of their competitors, both domestically and globally.... MORE
April 17, 2009 Billion Board Foot Club in 2008 loses more Company Members as a result of the Global Market Slump
The number of global softwood lumber companies that produced one billion board feet of lumber (nominal size) or more fell to only 11 companies in 2008 as compared to 15 in 2007 and 22 in 2006. The dramatic decrease in the number of companies making the list is a direct result of falling global lumber demand from plunging housing starts and the global economic recession. Total production of these Top 11 companies was 27.0 billion bf in 2008 as compared to 31.0 billion bf in 2007 (-12%) by the same companies.
Included in WOOD MARKETS’ 2008 annual Billion Board Foot Club
list are ... MORE
March 25, 2009 West Fraser now the #1 Softwood Lumber Producer in Canada and North America - “Top 20” Canadian softwood lumber producers suffer a stunning blow in 2008 due to market collapse.
The latest ranking of Canada’s “Top 20” lumber producers in 2008 indicates that total softwood lumber production by the Top 20 Canadian companies decreased by 16.7% compared to 2007. Similarly, total Canadian softwood lumber output dropped by a staggering 20.5% to reach just 23.8 billion bf in 2008 as compared to 29.95 billion bf in 2007. Unprecedented North American housing and softwood lumber market conditions drove prices below cost levels to lows not seen since the 1991-92 recession ... MORE
January 27, 2009 China facing the brunt of a pending log supply shortage as a result of Russia’s current 25% Log Export Tax and the scheduled 80% Tax - Tightening log supply pressure only being partially averted due to reduced market demand and currency volatility as a result of the global economic crisis.
While Russia’s move to an 80% log export tax (or minimum €50/m3 or US$400/Mbf, Scribner scale) has been delayed to late 2009, the projected reduction in Russian log production and exports in combination with higher log export costs .... there are some potentially attractive opportunities for those log and lumber exporters that can create a competitive fit with China, especially during the global market downturn .... MORE.
November 21, 2008 - Russian Log Importers Dodge the Bullet – For Now! Delay of the 80% Log Export Tax for 9 to 12 Months Only Creates More Uncertainty for Log Importers.
After having insisted for two years that the increasing log export tax was essential to develop the domestic log processing industry and therefore not negotiable, the Russian government has suddenly done an “about face” on the grounds that the current global economic downturn has created new concerns about the implementation of the last stage of this planned export tax schedule. ... MORE
October 16, 2008 - Russia's Scheduled 80% Log Export Tax will reduce log exports, disrupt global forest products trade flows and create a supply shortage in China. Higher prices and increased demand will create substantial opportunities in logs, lumber, pulp and other products for a variety of exporting countries to China and other Asian countries .... MORE
October 3, 2008 - U.S. Moulding Sector projected to be hardest hit of all major building materials. Housing market slump impacts offshore moulding producers the most as "perfect storm" stalls US market. The market outlook for 2009 remains grim until a delayed recovery start in 2010 .... MORE
May 15, 2008 - Lumber Prices to Spike, but Not Until 2011. Previous housing cycles suggest soaring prices at over US$400/Mbf. If history can be used as a guideline to simulate the next housing "up-cycle", then prospects for huge price increases look very exciting! .... MORE
December 18, 2007 - Mountain Pine Beetle killed timber to fuel the BC Interior sawmilling industry for another decade! Various factors indicate that SPF lumber output could remain in the 10-15 billion bf range for the next ten years. There continues to be considerable uncertainty around the "economic shelf life" .... MORE
October 18, 2007 - China's Wood Products Industry Increasingly Integrating Plantations into Operation. China continues to be the world's wood products "engine of production" and will burther utilize domestic plantation timber to maintain its position as the largest exporter of finsihed wood products .... MORE
September 12, 2007 - North American Sawmill Profits Lowest in the World in 2006 and Q2 of 2007. Sawmills throughout the US and Canada achieved dismal operating results in 2006 where the profits at "average" mills were barely positive and slipped into negative territory in the second quarter of 2007 .... MORE