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In the May Business Cycle Barometer of the Confederation of Finnish Industries EK, the business outlook for the sawmill industry and sales price expectations are in steep decline, and the order backlog compared to normal is well below zero, writes Tino Aalto, CEO of the Finnish Sawmill Industries Federation.

Companies in the sawmill industry have invested exceptionally much in their operations in recent years. Global demand for wood products will increase in the long term. The investments will enable sawmills to be technically competitive as the situation in export markets improves.

Unfortunately, the sawmill industry is currently going through exceptionally difficult times. According to many public estimates, this year will be bad and dark clouds are rapidly gathering on the horizon of next year’s export markets.

At the beginning of the year, it looked as if the market situation would improve and interest rate cuts would be made rapidly. It turned out differently.
In addition, the functioning of the market is challenged by many uncertainties, such as the prolonged crisis in the Red Sea, which disrupts logistics flows.

The Natural Resources Institute Finland also recently drew attention to the difficult situation. According to the report, the demand outlook for 2024 is subdued in the sawmill industry. The recovery in construction in both Europe and the United States is expected to begin only with a delay after the central banks’ key interest rate cuts.

In the May Business Cycle Barometer of the Confederation of Finnish Industries EK, the business outlook for the sawmill industry and sales price expectations are in steep decline, and the order backlog compared to normal is well below zero.

The production volume of sawn timber has been falling despite dozens of investments. In 2021, the sawn timber production volume was 11.9 million cubic metres, in 2022 11.2 million cubic metres and in 2023 10.4 million cubic metres.

Between January and April, the production volume has already decreased by seven per cent compared to the previous year.

At the same time as production volumes have fallen, the prices of raw materials, i.e. logs, and end products have taken on a life of their own. The price of logs has risen significantly more than the price of the end product, i.e. sawn timber, even though the use of logs has fallen by more than four million cubic metres since the record year 2021.

The index comparison of log and sawn timber prices, where 2010 is expressed by 100, shows that the index number for pine logs is 152 and for pine sawn timber the index number is 108. For spruce, the corresponding figures are 156 for logs and 123 for sawn timber.

The ratio between log and sawn timber prices has grown higher than in more than 15 years. In other words, from the point of view of the competitiveness of enterprises in the sawmill industry, the situation is extremely difficult.

The rise in the price of logs is due to something other than the market situation in the sawmill industry.

The chemical forest industry has a great need for wood.

The most significant change in the timber market in recent years has been the collapse in the amount of imported wood following Russia’s invasion of Ukraine. As recently as 2021, nearly 10 million cubic metres of wood were imported from Russia, mainly birch fibre and wood chips for the pulp industry.

The wood market has also been disrupted by the faster-than-expected phasing-out of peat and the resulting increased demand for wood in energy use. Significant amounts of logs are also directed to the pulp boiler instead of being processed into wood products with a long cycle time.

From the perspective of the future of the timber market, one interesting issue to monitor is the timber market study to be launched this year, which will be led by the Ministry of Agriculture and Forestry. In the study, it is important to review the functionality and competitiveness of the Finnish timber market.

In addition to an independent investigator, it is good that the Finnish Competition and Consumer Authority is involved in the work, as it has strong expertise in investigating whether practices in the timber market, for example, are sound from the point of view of competition law.

The sawmill industry uses one-third of the timber but is responsible for two-thirds of the base income. Finnish forestry needs a vibrant sawmill industry to run.

Tino Aalto
CEO
Finnish Sawmill Industries Federation

This article was originally published in Maaseudun Future 17.6.2024

To read other Finnish Sawmill Industries Federation related posts click here

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The post The Market Situation In The Sawmill Industry Is Very Difficult And Dark Clouds Are Gathering On The Export Market Horizon appeared first on International Forest Industries.

Forestry and Land Scotland (FLS) and its contractors have traversed the country in all conditions and across all terrain to visit and collect seeds from the 21 Caledonian pinewoods that the agency looks after. Source: Timberbiz It is the first time all sites managed by FLS have been visited in single year and is part of the ongoing efforts to safeguard the iconic tree species. Led by FLS Tree Nursery and Seed Resource Manager Kenny Hay, the team managed to successfully collect cones from 20 of the pinewoods. The extraction of the seed from pinecones will help to protect these forests from the threats of disease and climate change, conserve their unique genetic diversity and support the expansion of native pinewoods for future generations. Hills, glens and even lochs were crossed between January and April to reach sites ranging from Glen Einig in the north to Glen Orchy in the south and from the Black Wood of Rannoch in the east to the island of Eilean Ruairidh Mòr on Loch Maree in the west. “Unlike commercial Scots pine seed collection where you can collect from felled crowns, every tree must be climbed to avoid damage of any kind so the progress can be slow. “A lot of these pinewoods are not served by the best access so clambering across rank vegetation with all your climbing kit can be a lot of effort. Around 75 sacks of cones were collected with the potential for these cones to provide around 3 million seeds,” Mr Hay said. The cones were sent down to the Alice Holt Research Centre in Surrey for extraction, processing and storage. It is anticipated they will be returned to the new nursery currently under development at Newton where they will be a fitting first addition to the purpose-built seed store. There are 84 Caledonian pinewoods in Scotland recognised on the Caledonian Pinewood Inventory (CPI). One of the threats to these important sites comes from the fungal needle blight Dothistroma (DNB) and the presence of DNB in several UK nurseries resulted in a moratorium or temporary suspension on planting within 600 m of the core areas across the CPI sites. Natural regeneration is currently the only method of expansion for Scots pine in CPI sites. While this has been successful at some larger sites such as Glenmore, for many pinewoods, expansion has been very difficult through natural regeneration alone. In the intervening years since the moratorium on planting in these pinewoods, positive steps have been taken to reduce and limit the chances of DNB spread and the understanding of DNB also continues to develop. This means the seed source at Newton has the potential to play a vital role in forests with a lack of natural regeneration and could help to safeguard the vulnerable, isolated pinewoods. “Our pinewoods vary in character and therefore require different management techniques. Factors that impact them include ground vegetation and competition, adjacent seed sources, browsing, altitude, geology, soils, past management, temperature, exposure and rainfall,” Mr Hay said. “The collecting of seed across the entire range is a very significant step in preserving genetic diversity for the future and this will continue as we aim to build up stocks of these valuable resources.”  

Wooden packaging was found to outperform corrugated cardboard in a Life Cycle Assessment, especially in terms of greenhouse gas emissions, ecotoxicity, food safety and water footprint. Source: Fruitnet.com Wooden packaging has a lower environmental impact than its corrugated cardboard counterpart, according to the results of a Life Cycle Assessment (LCA) performed by consulting firm Géminis Tools, in collaboration with researchers from the group of Information and Communication Technologies against Climate Change of the Universitat Politècnica de València. The LCA compared the performance of the two kinds of single-use packaging for the refrigerated transport of 1,000 tonnes of mandarins by truck between Valencia and Germany, a distance of 2,000km. The higher energy consumption required to recycle paper and cardboard, the greater water consumption needed in the recycling and manufacturing process and the use of chemicals during recycling make wooden packaging more attractive in terms of emissions, water consumption, water eutrophication and terrestrial acidification, the study concluded. Fedemco, the Spanish Federation of Wooden Packaging and its Components, said that the European wood industry was leading the way in achieving circularity and carbon neutrality through “resource efficiency, circular design, prioritising recycling over early energy recovery through cascading”. The federation has developed and is promoting the European Ecowoox mark that certifies the eco-design and total recyclability of wooden packaging to meet national and European regulatory requirements. “The use of wooden packaging is a great advantage in the refrigerated transport of fruit and vegetable products, as it preserves better the properties of the transported product due to its resistance and strength,” Fedemco added. “Its physical and mechanical properties stand out as well as the protection it provides to the product against changes in the hygrothermal conditions of the environment. The use of wood in this type of packaging is beneficial for promoting sustainable forest management and the rural economy, especially in the Mediterranean forests where the raw materials, mainly pine and poplar, come from.”  

Researchers at the University of British Columbia’s Faculty of Forestry have made an extraordinary discovery: a new super-black material that absorbs almost all light, named Nxylon. This accidental breakthrough holds promising applications in fields such as fine jewellery, solar cells, and precision optical devices. Source: Timberbiz Dr Philip Evans and PhD student Kenny Cheng initially aimed to make wood more water-repellent using high-energy plasma, mimicking the lotus leaf effect. However, when they applied this technique to the cut ends of wood cells, the surfaces turned extremely black. Collaborations with Texas A&M University’s astronomy and physics department confirmed that this new material reflected less than one percent of visible light, absorbing almost all the light that struck it. Rather than overlooking this unexpected result, the UBC team pivoted their research focus to developing super-black materials, contributing a novel approach to the ongoing search for the darkest materials on Earth. “Ultra-black or super-black material can absorb more than 99% of the light that strikes it – significantly more than normal black paint, which absorbs about 97.5% of light,” explained Dr Evans, a professor in the Faculty of Forestry and BC Leadership Chair in Advanced Forest Products Manufacturing Technology. Super-black materials have significant demand in astronomy, where ultra-black coatings on devices help reduce stray light and improve image clarity. These materials also have the potential to enhance the efficiency of solar cells and are used in art pieces, luxury consumer items like watches, and in coating solar cells. The researchers have developed prototype commercial products using Nxylon, initially focusing on watches and jewellery, with plans to explore other commercial applications in the future. The team named their discovery Nxylon (niks-uh-lon), after Nyx, the Greek goddess of the night, and xylon, the Greek word for wood. Unlike most super-black materials that rely on coatings or veneers, Nxylon remains black even when coated with an alloy (such as gold-vanadium) due to its structure, which inherently prevents light from escaping rather than depending on black pigments. Plasma etching creates a low-density surface with large gaps between the wood’s pores, forming a network of hollow fibres and tapered columns. These tiny structures, combined with the wood’s natural composition, absorb and trap light, giving the material its super-black appearance. “Nxylon’s composition combines the benefits of natural materials with advanced structural features, making it lightweight, stiff, and durable,” adds Dr. Evans. The UBC team envisions Nxylon potentially replacing expensive and rare black woods like ebony and rosewood and being used in jewelry pieces where the black gemstone onyx would typically be used. Made from basswood, a tree widely found in North America and valued for hand carving, boxes, shutters, and musical instruments, Nxylon can also utilize other types of wood. Dr. Evans and his colleagues plan to launch a start-up, Nxylon Corporation of Canada, to develop practical applications in collaboration with jewelers, artists, and tech product designers. They also plan to test other low-to-medium density hardwoods for plasma modification to produce larger super-black wood samples suitable for non-reflective ceiling and wall tiles. “Nxylon can be made from sustainable and renewable materials widely found in B.C. and North America, leading to new applications for wood. The wood industry in BC is often seen as a sunset industry focused on commodity products our research demonstrates its untapped potential,” said Dr. Evans. Other researchers who contributed to this work include Vickie Ma, Dengcheng Feng, and Sara Xu.

A review of how the Australian Government supports farmers and small primary production related businesses through concessional loans has been tabled in Parliament. Source: Timberbiz Deputy Secretary for Agriculture, Fisheries and Forestry Policy, Matt Lowe, said the review into the operation of the Regional Investment Corporation (RIC) Act was a requirement under the Act. “The RIC is an Australian Government delivery agency that provides loans to long term viable farm businesses in financial need. RIC loans can help these businesses manage through tough times and improve their productivity and risk management into the future,” Mr Lowe said. “The RIC has an important role to play in delivering one of the government’s key farm support measures, being concessional loans. We need the RIC and its loans to be fit for purpose, which is why this statutory review is important to see if anything needs to change. “The then Minister for Agriculture, Fisheries and Forestry, Murray Watt, commissioned Dr Wendy Craik AM to undertake this review. As required by the RIC Act, she has been investigating not only the scope of the RIC’s activities after 30 June 2026, but how it should be governed in the future as well. “To help this process, Dr Craik has held more than 100 meetings with more than 65 stakeholders, including the RIC, agriculture groups, banks, Indigenous organisations and other Commonwealth bodies. “It’s been a thorough examination, and we want to thank Dr Craik for her work in carrying out the review. “Dr Craik provided her final report, including findings and recommendations, to Minister Watt at the start of the month. The report was tabled in Parliament, and it’s now published. “The Australian Government will now consider the outcomes of Dr Craik’s review and respond in due course. The RIC Board will also consider relevant recommendations. I note the RIC has already commenced implementing some recommendations that they can, such as improving their data collection. “This review supports the RIC making improvements to continue working in the best interests of Australian farmers and agribusinesses.” The report is available at Regional Investment Corporation – DAFF (www.agriculture.gov.au) and Review of the Operation of the Regional Investment Corporation Act 2018 – Agriculture hub.

Advanced high-definition cameras trialled to monitor the health of the forest canopy in Coromandel Forest Park in New Zealand show stark differences where possums are controlled. Source: Timberbiz The use of the small high-resolution cameras – fitted to a fixed-wing aircraft – is a new method for collecting forest canopy data, an important measure for the DOC’s work to assess forest health. DOC Monitoring Science Advisor Terry Greene says the cameras allowed for a comparison of forest canopy health between two adjacent tracts of land in the Papakai area of the park, totalling 2016 ha. “The aircraft’s flight path took it over two distinct areas of Papakai – a 1300 ha strip we’ve treated with 1080 to control possums, and a 716 ha area where we haven’t,” Mr Greene says. “We analysed the images to determine the extent of dead and living trees in the canopy. “The differences between treated and untreated areas are stark – with more than eight times the amount of dead wood seen in the untreated area compared to the Papakai predator control area.” The high-resolution images allow individual trees to be identified within the forest canopy. Images were collated into a seamless picture or ‘orthomosaic’ and analysed using computer algorithms to group pixels with similar characteristics, enabling trees to be classed as either dead or alive. The difference in the size of the treated and untreated areas (1,300 ha compared with 716 ha) was factored into the analysis so they could be more equally compared. The trial results correlate with long-term predator control in the Papakai area. Where possums are controlled, the forest canopy is much healthier in the images captured and where there is no possum control there is significantly more dead wood. Possums are known to go for the most appetizing species first and in Coromandel, that’s tōtara and kāmahi species. Possums will continually target these trees, eating all their foliage and eventually killing the tree. Over time, possums will impact the structure and composition of a forest as the canopy trees are replaced by less possum-palatable species. The reduction of healthy forest canopy trees means the wider forest is more susceptible to disease and storm events which cause further dieback and can ultimately lead to complete collapse of the forest ecosystem. Possum control keeps the possums from building up to levels where they are causing canopy dieback which means the forest is more resilient. Mr Greene says more work is needed to assess the relative contribution of other factors such as drought and disease to assessments of forest canopy mortality. The protected Coromandel forest is home to important native species such as Archey’s frogs, Coromandel striped gecko and Coromandel brown kiwi. Forest canopy monitoring is part of DOC’s broader program to monitor the outcomes of its predator control work for the native species and forests that it’s designed to protect.

Various segments of the housing market are increasingly active, with lending to first-home buyers, owner occupiers, and investors increasing in the first half of 2024 according to HIA Economist, Maurice Tapang. Source: Timberbiz The ABS released the Lending Indicators data for the month of June 2024, which provides the latest statistics on housing finance commitments. “The number of loans issued for the purchase and construction of a new home has been steadily increasing since the start of 2024, from a very low base,” Mr Tapang said. “Market confidence appears to be stabilising following nine months without a change in interest rates. “The number of loans issued for the purchase or construction of a new home increased by 9.2% in the June quarter 2024 compared to the previous quarter. “This quarterly increase was broad-based, with all states recording more loans issued for new homes in the June quarter 2024 than in the March quarter. “This increase in lending is partially driven by a return of first home buyers to the market. “The number of loans issued to first-home buyers in the June quarter 2024 was 5.8% higher compared to the March quarter. “This suggests that building activity is at, or near, the trough in this cycle. The ABS also released its Producer Price Index series for the June quarter 2024, which provides the latest statistics on the price of inputs and home building materials. “Following record high increases in the cost of building materials, the ABS has reported that price growth has returned to well-below the pre-pandemic rate. “Prices of home building materials rose by 1.1% in the year to June 2024. This is around half the rate of increase seen in the decade prior to the pandemic,” concluded Mr Tapang. The number of loans issued for new homes in original terms increased by 53.2% in Western Australia in the June quarter 2024 compared to the previous year. This was followed by the Northern Territory (+20.9%), Queensland (+17.1%), New South Wales (+5.3%), the Australian Capital Territory (+5.2%), Tasmania (+4.1%), and Victoria (2.0%). Lending for new homes in the June quarter 2024 fell in South Australia by 1.3% compared to the same time in the previous year.

The Forest Stewardship Council Australia and New Zealand is seeking nominations for a position on the economic chamber of its Standards Development Group following the resignation of HVP’s Tim McBride. Source: Timberbiz Applications will close on 3 September 2024, when the FSC ANZ Board will consider applications and appoint the successful candidate. Standards Development Group members are chosen for their experience and ability to represent key interest areas important for the revision and FSC’s values and policies. Eligibility for the Standards Development Group requires that applications include and demonstrate: Membership of FSC ANZ. Or submission and approval of an FSC ANZ membership application as part of the expression of interest process. Up-to-date knowledge of FSC’s systems and procedures. Representation of points of view from the economic chamber, ideally with experience, a skill set, and input from the native forestry sector. An understanding of the impact of the standard on affected stakeholders. An understanding of and commitment to FSC’s mission and vision. A desire to seek and reach consensus on controversial issues. An ability to actively participate in the process until final approval of the revised standard. Support from two members of the corresponding chamber in the form of letters of support. An ability to review and comment on documents in English. Expert knowledge of and/or experience in the development, implementation and/or analysis of standards will be highly regarded. Expressions of interest should be sent to info@au.fsc.org by close of business 03.09.2024. For more information on the Standards Development Group and the process for appointment, please contact Stefan Jensen, FSC ANZ’s Senior Policy Manager:  s.jensen@au.fsc.org

Engineered Wood Products Association of Australasia staff have paid tribute to valued employee Suzie Steiger after 20 years of impactful service. Source: Timberbiz Ms Steiger is employed as the Timber Testing Centre’s (TTC) General Manager, leading TTC’s timber testing laboratory activities, and EWPAA Operations Manager, coordinating essential accreditation and certification activities, and reached the impressive milestone on the 2 August 2024. Ms Steiger started work with EWPAA in 2004 and has seen significant change and growth over the 20 years, in both her work roles and the organisation’s activities. EWPAA CEO Gavin Matthew acknowledged her ongoing commitment and tireless efforts to ensuring EWPAA and TTC are successful and leading timber product certification and testing in Australasia. “Suzie is a dedicated employee who inspires us all,” said Mr Matthew. “She has a great work ethic and real attention to detail that is essential in providing high-quality timber product certification and testing activities.” Over 20 years and multiple roles, Ms Steiger has demonstrated a passion for timber and our industry, and a willingness to provide industry with the benefit of her expert knowledge.

The SA Country Fire Service is deploying skilled firefighters to the United States of America for the first time since 2018. Source: Timberbiz CFA personnel will support the US’ key wildland firefighting agency, the National Interagency Fire Center (NIFC), in managing extensive incidents across the nation’s Pacific Northwest. The eight-member deployment left Adelaide on Tuesday and head to the NIFC’s base in Boise, Idaho, as part of a contingent of 66 Australian firefighters. CFS crew, featuring six volunteers and two staff, participating in this deployment include: Malcolm Biscoe, Strike Team Leader, Goolwa Brigade Anthony Casey, Strike Team Leader, Peterborough Brigade Justin Baxter, Strike Team Leader, Kadina Brigade Garry Jungfer, Strike Team Leader, Angaston Brigade Paul Unsworth, Sector Commander, Sellicks Brigade Timothy Buck, Sector Commander, Kangaroo Island Damon Whitwell, Sector Commander Michael Amos, Sector Commander There are currently around 100 fires being managed by NIFC in the Pacific Northwest, with over 80 of these uncontained large fires. Conditions in the area range from desert landscape to large mountains, with personnel camping and working in various types of weather. This deployment will last for up to 40 days. In total, 20 CFS personnel have been deployed this year to fight fires in Canada and the USA. “This is the CFS’ first deployment to the United States since 2018 and we are honoured and privileged to be supporting overseas firefighting agencies during their time of need,” CFA Chief Officer Brett Loughlin said. “Our CFS personnel will be providing a valuable resource in fighting these fires, but also gaining additional skills that will benefit our communities as we prepare for our own fire danger season.”

Environmentalist Bob Brown has been found guilty of trespassing during a protest against logging near Snow Hill, Tasmania. Source: Pulse Tasmania, The Mercury Brown, 79, along with Karen Weldrick, 64 and Kristy Alger, 42, appeared in the Hobart Magistrates Court on Monday over the incident on November 8, 2022. The trio was arrested while protesting against logging by Sustainable Timber Tasmania in the state’s north-east, an area they claimed was crucial habitat for the endangered swift parrot. The group claimed the area was crucial habitat for the endangered swift parrot and that logging operations were harming the bird’s survival. All three pleaded not guilty to their charge, arguing the logging was illegal due to noncompliance with a forest practices plan. Brown said he saw a swift parrot fly overhead while he was being arrested. Weldrick and Alger were arrested after chaining themselves to logging machinery. The Magistrate found the evidence presented by the Bob Brown Foundation insufficient and ruled there was no evidence the logging was illegal. She also rejected the trio’s argument that their actions constituted a ‘safe, peaceful, non-obstructive protest on an issue of public importance’, stating that it was ‘neither safe nor unobstructive’. The Mercury reported that in her published reasons for her decision, Ms Hartnett said there was insufficient evidence of this provided by the Bob Brown Foundation and found there was no evidence that the harvesting was unlawful. Ms Hartnett was also not convinced by other arguments made on behalf of Brown, including that he had a reasonable and genuine belief he was located outside of the logging coupe when he was approached to leave by two police officers. She said while she found Brown “argumentative and not willing to make reasonable concessions” during the hearing, she agreed his belief had been genuine. However, she found his excuse to not be “objectively reasonable”. Ms Hartnett also rejected the former Senator and Greens leader’s argument that his actions had a reasonable excuse, that his actions were “safe, peaceful, non-obstructive protest on an issue of public importance”. She said it was neither a safe nor unobstructive protest. “We’re back in a week or so to be sentenced for being found guilty, but I will be appealing,” Brown said outside court. “I’m going to appeal to the Australian public to join us for more peaceful forest protests in defence of the forests, where governments under the impress of big corporations won’t make that stand.” “Jail has no terror like the destruction of this world’s nature. And it’s up to us in our time to stop that destruction.” It is expected the trio will be sentenced on August 14.