MTIB News Extract - MWMJC
Transcript of MTIB News Extract - MWMJC
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MTIB News Extracts (Vol. 07/04/21)
MTIB News Extract Vol. 07/04/2021
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MTIB News Extracts (Vol. 07/04/21)
This twice monthly information service provided by MTIB represents one of our efforts to provide the timber industry regularly updated business information on forestry and timber and the trading environment. This enables quick reading of trends, developments and business opportunities to be identified. Since its launching, the service is well received and I thank you for your continued support especially your comments and suggestions. We will continue to upgrade the quality of the news items for the interest and benefit of the industry and hope your association’s members will continue to benefit from it. Please communicate with us regularly so that we can improve the information flow based on your feedback. We look forward to hearing from you. Thank you. Mohd Kheiruddin Mohd Rani Director General Malaysian Timber Industry Board
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INDONESIA: DOUBLE-DIGIT GROWTH IN TIMBER EXPORTS
Indonesia notched up the remarkable feat of achieving double-digit growth
from its forestry exports in the first quarter of this year despite the
disruption of international demand. Indonesian wood product manufacturers
achieved 14% growth in exports in the first quarter of 2021.
Siti Nurbaya, the Minister of Environment and Forestry applauded this as an
outstanding performance. The Minister commented that the upstream and
downstream forestry sector have benefitted from the easing of tax and non-
tax policies and have adapted well to the new trading environment. She
explained that Indonesia's forestry exports to the US and China in the
first quarter of this year jumped over 30%.
ITTO TTM reports, 1 -15 April 2021
VIET NAM: FOREST PRODUCTS EXPORT GROWTH 14 % IN FIRST QUARTER
Wood, forest and wood product export earnings in the first quarter of 2021
reached USD3.944 billion, an increase of 41% over the same period in 2020
according to the Viet Nam Administration of Forestry. Of the total, the
export revenue from wood and wood products stood at USD3.699 billion, up
41% while the export revenue of other forestry products reached USD243
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million, up 38% over the same period last year. High export growth in the
first quarter of this year was achieved in Vietnam’s main export markets
such as the US, Japan, China, the Republic of Korea and the EU which
account for 90% of Vietnam’s forestry export value. Meanwhile, imports
value of wood and wood products in first quarter of 2021 was estimated at
USD696 million, up 31% over the same period last year. The rise in the
value of imports was due mainly to increased prices for raw materials.
ITTO TTM reports, 1 -15 April 2021
VIET NAM: HIGH OCEAN FREIGHT RATES THREATEN WOOD EXPORTS
According to Vietnam's Timber and Forest Product Association (VIFOREST),
the export of wood products this year is expected to reach USD14 billion,
requiring 800,000 empty containers, which 500,000 empty containers for
exports to the United States.
Although the shortage of containers has eased, there is still a 20% gap. At
the same time, the rise of ocean freight is too fast, which makes companies
face great difficulties. Compared with last November, the freight for each
40 foot container to the EU increased by USD400 to USD500 and compared with
last March, the freight to South Korea has increased 10 folds.
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At the same time, the export price of wood products basically did not rise,
and companies are facing survival pressure. Vietnamese enterprises say that
they dare not to accept long-term orders for the whole year due to the
large fluctuation of ocean freights, and only dare to accept orders within
one or two quarters.
The report said that Vietnam lacks large enough shipping companies to
support its exports. Domestic container ships can only run short distance
routes in Asia, and only a small number of container ships were operating
to European routes, so it still relies heavily on foreign shipping
companies.
GWMI, April 2021
CHINA: FURNITURE EXPORTS INCREASED BY 61% IN THE FIRST QUARTER
According to customs data, from January to March, the export value of
furniture and its parts was 105.43 billion Yuan, an increase of 61% over
the same period last year (65.5 billion Yuan). The export value of
furniture and its parts in March was 33.53 billion Yuan.
China Wood network, 2021-04-15
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CHINA:SAWNWOOD IMPORTS FROM BELARUS SOARED
Russia still was the main sawnwood supplier to China in 2020 but China’s
sawnwood imports from Russia fell 13% to 15.9 million cubic metres and
accounted for 54% of the national total, down 6% year on year. Belarus
became the fastest growing sawnwood supplier to China and sawnwood imports
from Belarus soared 114% to 630,000 cubic metres in 2020.
China’s sawnwood imports from Ukraine and Germany rose 22% and 21% to 1.06
million cubic metres and 1.08 million cubic metres respectively. China’s
sawnwood imports from the USA and Gabon also increased 1% and 4% to 1.64
million cubic metres and 570,000 cubic metres respectively in 2020.
ITTO TTM report, 1- 15 April 2021
INDIA: NEW INVESTMENTS IN PARTICLEBOARD PRODUCTION
The growing demand for particleboard, driven partly by increased purchases
of ready to assemble furniture, is attracting investment in production by
major companies. Currently, particleboard production is dominated by small
sized producers but now some of the laminate manufacturers see an
opportunity in panel production.
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The Times of India has reported that the Gujarat Government has approved a
proposal from Merino Laminates to establish a particleboard plant at Halol
in Panchmahal district. Plyreporter has indicated that other high pressure
decorative laminate producers are also considering moving to downstream
panel production.
ITTO TTM reports, 1 -15 April 2021
INDIA: PLYWOOD DEMAND SET TO EXPAND 4% ANNUALLY
According to a report ‘Indian Plywood Market: Industry Trends, Share, Size,
Growth, Opportunity and Forecast 2021-2026‘ from the IMARC Group a market
research company, the Indian plywood market was worth Rs222.5 Billion in
2020 and could expand over 4% annually up to 2026. The Indian plywood
market is primarily driven by construction activity and the home furnishing
sector. Growth in consumer disposable income levels along with the rising
expenditure on home décor will support demand for wood based panels.
ITTO TTM reports, 1 -15 April 2021
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JAPAN: IMPORT OF WOODEN DOOR AND WOODEN WINDOW IMPROVED
Wooden door imports as was the case in January 2021, China and the
Philippines dominated Japan’s sources of wooden doors (HS441820) but their
combined shared of total imports slid once more with shippers in SE Asia
especially Indonesia and Malaysia grabbing a higher market share. China
accounted for 52% of the value of February imports of wooden doors followed
by the Philippines at 29% and Indonesia at 6%. Year on year, February
imports of wooden doors were up 38% and month on month February imports
were 18% higher.
While, wooden window (HS441810) imports in February 2021 was little changed
from a year earlier but compared to the value of imports in January there
was a 13% increase. Main shippers, China (49%), the US (25%) and the
Philippines (23%) accounted for most of Japan’s wooden window imports in
February and all saw their share of imports rise compared to January. Year
on year February 2021 imports of wooden windows were flat but month on
month there was a 13% increase.
ITTO TTM reports, 1 -15 April 2021
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EU: NEW COOPERATION PROJECT AIMS TO BOOST EUROPEAN EXPORTS
The huge market and development potential of China's imported wood and wood
products have attracted the attention of many global wood industry
companies and organizations. One of them is the Europe-LEF China
Cooperation Network (LEF Network China). The project is composed of
companies and organizations from three countries: Latvia, Estonia, and
Finland.
The LEF Network China project team believes that China, as a major timber
importer, has not fully paid attention to and developed the potential of
high-value-added wooden products. LEF Network China brings together nearly
80 timber and wood products companies from three countries, Latvia, Estonia
and Finland. The companies have accumulated rich experience in wood
processing, wood structure construction, furniture, etc., especially in
modern mainstream engineered wood- CLT (Cross Laminated Timber) aspect.
European organizations participating in the project are: Latvian Chamber of
Commerce and Industry, Satakunta University of Applied Sciences, Estonian
Chamber of Commerce and Industry, Latvian Timber Construction Cluster, and
Estonian Wooden House Association.
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The project aims to increase cooperation opportunities between EU wood
companies and Chinese companies, improve the ability of the Baltic Sea wood
companies to cooperate with Chinese wood companies, and promote the growth
of European wood companies’ exports of high value-added wood products to
China.
GWMI, 8 April 2021
EU: DISCUSSION ON POSSIBLE MERGER OF EUTR WITH EU DEFORESTATION‐FREE
REGULATIONS
The EU is considering introduction of new forest and climate policy
measures which would reshape timber trade relations with tropical
countries. In some ways, the proposed measures build on the existing policy
framework contained in the FLEGT Action Plan. However, they also raise
questions about the future of existing instruments such as the EU Timber
Regulation (EUTR) and FLEGT licensing systems.
The potential far-reaching implications of the on-going policy discussions
were highlighted in a presentation by Hugo Schally of the European
Commission’s Environmental Directorate (EC DG ENV) to a webinar hosted by
FERN, the Brussels based environmental NGO, on 17 March 2021 which brought
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together a range of policy makers and civil society stakeholders for
presentations and discussions on the theme ‚Enforcing Due Diligence
regulation for forest risk commodities.
ITTO TTM REPORTS, 1 -15 APRIL 2021
GERMAN: TIMBER TRADERS WORRIED ABOUT A SHORTAGE OF SUPPLIES
The German timber trade is concerned about the increasingly tense situation
on the procurement markets. Wholesalers are increasingly confronted with
long delivery times for the most important product ranges, and supplies to
construction sites are gradually becoming scarce. If the situation worsens,
a construction freeze on construction sites can no longer be ruled out.
Current reports from our member companies indicate a precarious development
in terms of the supply of wood and wood products, said The General
Association of German Timber Trade (GD Holz) chairman Philip Zumsteg.
Demand, on the other hand, is still good, sales development in the first
quarter positive, also influenced by in some cases considerable price
effects.
We now have to be very careful not to interrupt the very good economy for
wood and wood construction - and this is where the industry is primarily
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required to supply the domestic market with its products on a sustainable
basis," continues Zumsteg. For years we had very successful sales marketing
for our renewable raw material, now we have to deliver too.
GD Holz assumes that wood imports will play an increasing role in supplying
the domestic and the entire domestic market. Wood is a globally traded
product; the economic upturn in Asia and the USA is currently creating an
enormous demand for raw materials, including wood - a demand that is
leading to the difficult supply situation in Germany.
GD Holz considers that it is well positioned in the import market with 120
import houses and contributes to the secure supply in Germany and the
domestic market by importing a wide variety of timber assortments from all
over the world.
The local forest owner will continue to play a dominant role in the future
of wood supply, but we have to think globally if we want to ensure the wood
supply in the years to come", says GD Holz Managing Director Thomas Goebel.
GWMI, 15 April 2021
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NORTH AMERICA: TROPICAL HARDWOOD IMPORTS FALL
The volume of sawn tropical hardwood imported by the US fell again in
February, as the US Census Bureau reported only 5,387 cubic metres of wood
imported, which is a 30% decline from January. Imports from Ecuador,
Brazil, and Cameroon all fell more than 50%. Year-to-date totals for 2021
are hard to compare with 2020 since newly implemented USDA categorisations
are no longer counting Ipe and Jatoba imports toward these totals as they
have in previous years.
If Ipe and Jatoba were counted, the decline in February would be only 14%
from January, with a February total 11% higher than February of 2020. US
import volumes of Balsa, Sapelli, Acajou d’Afrique, Mahogany, and Meranti
all fell sharply in February, while Keruing, Cedro, and Jatoba imports all
grew by more than 30%.
Canadian imports of sawn tropical hardwood were down 3% in February and
trail last year’s imports by 28% through the first two months of the year.
ITTO TTM, reports 1 -15 April 2021
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BRAZIL: WOOD PRODUCT EXPORTS INCREASE 30.5% IN FEBRUARY
In February 2021, Brazilian exports of wood-based products (except pulp and
paper) increased 30.5% in value compared to February 2020, from USD216.1
million to USD282.0 million.
Pine sawnwood exports grew 16% in value between February 2020 (USD9.9
million) and February 2021 (USD46.2 million). In volume, exports increased
9% over the same period from 218,800 cubic meters to 238,500 cubic meters.
Tropical sawnwood exports declined 8% in February from 32,600 cubic meters
in February 2020 to 30,100 cubic meters in February 2021. In value, exports
fell 13% from USD14.5 million to USD12.6 million over the same period.
Pine plywood exports surged 75% in value in February 2021 in comparison
with February 2020, from USD36.1 million to USD63.3 million. In volume
terms, exports increased 17% over the same period, from 165,800 cubic
meters to 194,500 cubic meters.
As for tropical plywood, export volumes remained flat but export earnings
rose 15% (from 5,200 cubic meters, USD2.0 million in February 2020 to 5,200
cubic meters and value at USD2.3 million in February 2021).
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Wooden furniture export earnings increased from USD43.3 million in February
2020 to USD55.1 million in February 2021, a 27% year-on-year rise. Sales of
Brazilian furniture to the United States have grown over the last two
years.
Panel&furniture, 5 April 2021
US: WOODEN FURNITURE IMPORTS END GROWTH STREAK
After eight straight months of growth US imports of wooden furniture fell
by 18% in February. While still totalling more than US$1.7 billion for the
month, imports from China, Vietnam, Malaysia, Indonesia, and India all fell
in the 20% range. However, comparing the value of imports in February 2020,
before the world realised a pandemic was imminent and February 2021 the
strength of recovery in the US furniture market has been remarkable.
Despite the slump, year-to-date imports from each country are up more than
10% for the first two months of the year. Conversely, imports from Canada
were up 3% in February, but are down 8% year to year.
In a press release the Kitchen Cabinet Manufacturers Association reports
cabinet sales rebounded in February with overall sales up 5.9% from
January. Custom sales were up 12.2%, semi-custom sales up 6.5%, and stock
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sales increased 4.2%. Participating cabinet manufacturers reported an
increase in overall cabinet sales of 5.7% for February 2021 compared to the
same month in 2020. Custom sales are up 9.4%, semi-custom increased 9.9%,
and stock sales increased 2.2%.
The month-to-month comparison, cabinet sales rebounded. Overall sales were
up 5.9% in February 2021 compared to January 2021. Custom sales were up
12.2%, semi-custom sales up 6.5, and stock sales increased 4.2%.
ITTO TMM reports, 1 – 15 April 2021
HOUSING STARTS ROSE 19.4% IN MARCH
Privately-owned housing starts in March were at a seasonally adjusted
annual rate of 1,739,000, according to the U.S. Census Bureau. This is
19.4% above the revised February estimate of 1,457,000 and is 37.0% above
the March 2020 rate of 1,269,000. Single-family housing starts in March
were at a rate of 1,238,000; this is 15.3% above the revised February
figure of 1,074,000. The March rate for units in buildings with five units
or more was 477,000.
Privately-owned housing units authorized by building permits in March were
at a seasonally adjusted annual rate of 1,766,000. This is 2.7% above the
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revised February rate of 1,720,000 and is 30.2% above the March 2020 rate
of 1,356,000. Single-family authorizations in March were at a rate of
1,199,000; this is 4.6% above the revised February figure of 1,146,000.
Authorizations of units in buildings with five units or more were at a rate
of 508,000 in March.
Privately-owned housing completions in March were at a seasonally adjusted
annual rate of 1,580,000. This is 16.6% above the revised February estimate
of 1,355,000 and is 23.4% above the March 2020 rate of 1,280,000. Single-
family housing completions in March were at a rate of 1,099,000; this is
5.3% above the revised February rate of 1,044,000. The March rate for units
in buildings with five units or more was 476,000.
Floor Daily, 19 April 2021
AUSTRALIA: HOME BUILDER CONSTRUCTION DEADLINE EXTENDED
The federal government has extended the deadline to begin construction
under the HomeBuilder grants program by an additional 12 months.
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Those who were eligible for the grant before its March 31 conclusion - some
121,000 building applications, according to the government - will now have
18 months after signing contracts to commence construction.
"This extension in the commencement date for which the first slab can be
laid is a very important step," Treasurer Josh Frydenberg told reporters.
The scheme would cost the government AUD2.5 billion but had helped tip some
AUD30 billion into Australia's construction sector amid the COVID-19
pandemic.
Approvals to build private homes hit a record high in February, fuelled by
HomeBuilder and record low interest rates.
The Australian Bureau of Statistics said since the introduction of
HomeBuilder in June 2020, private house approvals have risen by almost 70
%.
In February, home approvals jumped by 15.1 % to 13,939 houses, breaching
the previous peak set in December last year.
The HomeBuilder scheme was introduced during the depths of the COVID-19
pandemic and late last year was extended to March, although the size of
grants was trimmed from AUD25,000 to AUD15,000.
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The Property Council of Australia on Saturday welcomed the deadline change,
saying HomeBuilder had been an "economic bullseye" and the extension would
ease pressure on home builders to begin construction quickly.
Australian Associated Press, Sat, 17 April 2021
WEST AFRICA: CONTAINER SHORTAGE DISRUPT LUMBER EXPORT
All West African shippers are suffering from a lack of containers for
exports. The shipping companies are struggling to meet demand. According to
Bloomberg, most shipping containers are made in China and manufacturers
there suffered a collapse in orders in early 2020.
The recovery in global trade came so quick that container box makers in
China were unable to raise production fast enough and this led to shortages
and is part of the reason for soaring freight rates.
The shortage of shipping opportunities in West Africa may improve if the
purchase of NileDutch by Hapag-Lloyd goes through. Hapag-Lloyd hopes to
capture a larger share of the West African market. NileDutch is one of the
leading providers of container services from and to West Africa.
ITTO TTM, report 1- 15 April 2021
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GHANA: EXPORT OF FOREST PRODUCTS GREW FOR JANUARY AND FEBRUARY 2021
According to data from the Timber Industry Development Division (TIDD) of
the Forestry Commission, year on year, exports of timber and wood products
increased to 42,173 cubic meters in the first two months of 2021, from
35,508 cubic meters in the same period in 2020 representing an increase of
19% in export volumes. There was an almost 30% increase in export earnings
over the same period. Except for sliced and rotary veneer export volumes
for sawnwood (AD and KD), billets, plywood (regional sales) and mouldings
registered significant increases compared to the same products in 2020.
Total revenue from wood products increased by close to 260% year-on-year
during the first two-months of 2021 compared to 2020.
ITTO TTM, report 1- 15 April 2021
GLOBAL: SHORTAGE OF WOOD PRODUCTS MAY BECOME WORSE
In a joint statement, the UK Construction Industry Leadership Council
issued the following warnings to the industries.
In the UK and globally, the demand for construction wood products is still
high, and demand in all areas will continue throughout 2021. Unfortunately,
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this means that our current usability problems may worsen before they
improve. Imported products such as wood, steel, roof tiles and bricks have
been added to the list of existing products that are in short supply.
Before the Suez Canal was temporarily blocked, we found that the container
cost and delivery time of these imported goods were slightly reduced. We
expect that this situation will continue once the effects of the temporary
closure continue.
In the foreseeable future, timber imports will be a problem. Timber
production is not enough to meet world demand. In addition, other countries
are also preparing to pay higher prices to ensure supply, which makes the
UK's ranking drop.
All users should plan for increased demand and longer delays, maintain open
communication channels with suppliers, and order as soon as possible for
future projects.
GWMI, 12 April 2021
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GLOBAL: THE WORLD'S FIRST WOOD SATELLITE IS SCHEDULED TO LAUNCH IN 2021
The world's first satellite made of wood is scheduled to launch into orbit
later this year. UPM Plywood, Arctic Astronautics and technology design
company Huld are involved in a project to study the durability and
behaviour of plywood.
The Wisa Woodsat satellite is intended to determine whether wood material
can be used in space. The Nano satellite, built by Arctic Astronautics,
measures 10x10x10 centimetres and weighs about a kilo.
The satellite is scheduled to take off on its space flight with the Rocket
Lab Electron rocket from New Zealand.
The behaviour of birch plywood made in Savonlinna is monitored by two
cameras, one of which is at the end of a camera boom, or selfie stick, that
opens in space. The tiny satellite gets its energy from nine small solar
cells.
Fordaq, 16 April 2021
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By:
Trade Development Division Malaysian Timber Industry Board
(Ministry of Plantation Industries and Commodities) Level 13-17, Menara PGRM, No. 8 Jalan Pudu Ulu, Cheras
P.O.Box 10887, 50728 Kuala Lumpur