Markets
July 20, 2017 - This Net Earnings Summary has been prepared by PwC based on financial statements and other sources issued by the selected companies. Earnings are reported in regional currencies, as noted.

July 19, 2017 - Builder confidence in the market for newly-built single-family homes slipped two points in July to a level of 64 from a downwardly revised June reading on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). It is the lowest reading since November 2016.

“Our members are telling us they are growing increasingly concerned over rising material prices, particularly lumber,” said NAHB chairman Granger MacDonald, a home builder and developer from Kerrville, Texas. “This is hurting housing affordability even as consumer interest in the new-home market remains strong.”

“The HMI measure of current sales conditions has been at 70 or higher for eight straight months, indicating strong demand for new homes,” said NAHB chief economist Robert Dietz. “However, builders will need to manage some increasing supply-side costs to keep home prices competitive.”

Derived from a monthly survey that NAHB has been conducting for 30 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

All three HMI components registered losses in July but are still in solid territory. The components gauging current sales conditions fell two points to 70 while the index charting sales expectations in the next six months dropped two points to 73. Meanwhile, the component measuring buyer traffic slipped one point to 48.

Looking at the three-month moving averages for regional HMI scores, the Northeast rose one point to 47. The West and Midwest each edged one point lower to 75 and 66, respectively. The South dropped three points to 67.
July 18, 2017 - Lost production at B.C. sawmills due to wildfires has resulted in a jump in lumber prices and experts say prices could continue to rise. 
July 17, 2017 - The impact of duties on Canadian lumber exports to the U.S. will be a game-changer for different producing areas in North America, and also for exporters to the U.S. from overseas.
July 17, 2017 - Wood fibre costs for pulp mills in the US Northwest have fallen faster than in other region of the U.S. the past year, resulting in a more competitive industry sector, reports the North American Wood Fiber Review. Despite the recent price reductions in Washington and Oregon, pulp manufacturers in the southern states continued to have lower wood fibre costs than pulp mills in the Northwest, Northeast and the Lake States in the 1Q/17.
July 12, 2017 - Availability of building materials, especially framing lumber is rising on the list of home builder concerns according to the May 2017 survey for the NAHB/Wells Fargo Housing Market Index. The results revealed that 21 percent of single-family builder respondents reported a shortage of framing lumber.
June 27, 2017 - Granger MacDonald, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Kerrville, Texas, today issued the following statement regarding the U.S. Commerce Department's preliminary decision to impose up to 7.7 per cent anti-dumping duties on Canadian lumber imports:
June 27, 2017 - B.C. lumber producers will continue to vigorously defend the industry against a new round of preliminary anti-dumping duties imposed by the U.S. Department of Commerce on Canadian softwood lumber.
June 27, 2017 - The re-introduction of a second tariff on Canadian softwood lumber exports pushes the industry closer to crisis, says Unifor.
June 27, 2017 - Minister of Forests, Lands and Natural Resource Operations John Rustad has issued the following statement in response to the U.S. Department of Commerce preliminary determination of anti-dumping duties of 6.87 per cent to be applied to the majority of Canadian softwood lumber shipments entering the U.S.
June 23, 2017 - Sales of newly built, single-family homes in May rose 2.9 per cent to a seasonally adjusted annual rate of 610,000 units after an upwardly revised April reading, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.
June 21, 2017 - The antidumping duties on Canadian softwood lumber that will be announced Friday by the United States, which could be as high as 10%, will once again penalize Canadian workers and American consumers, according to calculations carried out by the MEI.
June 20, 2017 - Softwood lumber prices in the U.S. jumped in early 2017 to hit a 13-year high in April. Prices for softwood lumber imported to the major markets in Asia, China and Japan, were also higher year-over-year in early 2017, with Chinese import prices being more than 20 per cent higher in the 1Q/17 as compared the 1Q/16, according to the latest Wood Resource Quarterly. In Europe, lumber prices continued trending downward with the Nordic export prices in the 1Q/17 falling to their lowest levels in 10 years.
June 19, 2017 - Led by a decline in multifamily production, nationwide housing starts fell 5.5 per cent in May to a seasonally adjusted annual rate of 1.09 million units, according to newly released data from the U.S. Department of Housing and Urban Development and the Commerce Department. Multifamily starts fell 9.7 per cent to a seasonally adjusted annual rate of 289,000 units while single-family production edged down 3.9 per cent to 794,000.
June 9, 2017 - Excerpts from the Wood Resource Quarterly

Global Timber Markets


• The Global Sawlog Price Index (GSPI) was up 0.3% quarter-over-quarter in the 1Q/17. This was only the second time in almost three years that the GSPI increased quarter-over-quarter. Over the past year, sawlog prices have generally gone up in Latin America, Oceania and North America, while they have declined in Europe.

• In the 1Q/17, the European Sawlog Price Index (ESPI-€) was €83.12/m3, which was practically unchanged from the previous quarter. Since the record high in the 1Q/14, the ESPI-€ has fallen by 8.3% with the biggest declines seen in Central and Northern Europe.

Global Pulpwood Prices

• The Global Softwood Fiber Price Index (SFPI) fell 0.7% quarter-over-quarter in the 1Q/17, which was down 3.0% from the 1Q/16. The SPFI has been in decline for almost five years and is currently at its lowest level since the 3Q/04. In real terms, the SFPI in the 1Q/17 was at its lowest level since WRQ initiated the index 30 years ago in 1988. The biggest recent declines in softwood fiber costs for the pulp sector have occurred in Eastern Canada, Finland, France and Germany.

• Hardwood wood fiber prices have generally moved up worldwide in the 1Q/17, with the Global Hardwood Fiber Price Index (HFPI) increasing one percent qo-q to $86.99/odmt in the 1Q/17. Prices rose the most in Australia, Brazil, Russia and the western U.S.

Global Pulp Markets

• Demand for chemical market pulp was up by over six percent during the first three months of 2017 as compared to the same quarter in 2016. Chinese demand was up the most, 22%, while Western Europe was the only region where consumption was down in early 2017.

• Prices for most pulp grades have increased in early 2017 because of a combination of tight supply and continued strong demand.

• The BHKP price has gone up the most this year, having increased almost $90/ton to $740/ton in just four months, while the price rise of NBSK has been a more modest $30/ton from January to April.

Global Lumber Markets

• Globally traded softwood lumber reached an all-time high in 2016. WRI estimates that 118 million m3 of lumber was traded last year, or 10 percent more than in 2015. Imports to the US account for about one-third of globally traded lumber and have almost doubled in five years. China accounted for about 17% of import volumes in 2016.

• Lumber production in North America in 2016 was up six percent from the previous year, reaching its highest level since 2007. The biggest rises in production were in the U.S. South and Eastern Canada, while the increases in western Canada and the western U.S. were more modest. This trend continued during the first two months of the year with production on the continent being 1.5% higher than in the same period in 2016.

• Domestic lumber prices in both Finland and Sweden continue to be close to their lowest levels in ten years in US dollar terms.

• Prices for imported softwood lumber to China have been in a steady upward trend during 2016 and 2017 with the average import price in March 2017 being 13% higher than 18 months earlier.

Global Biomass Markets

• Wood pellet imports to Asia reached an all-time-high in the 4Q/16 when Japan and South Korea together imported 630,000 tons of pellets. Although import volumes were down slightly in the 1Q/17, they were still 43% higher than in the 1Q/16.

• Over the past ten years, there has been a clear shift in fiber-sourcing for pellet manufacturers in the U.S. South from logs to residues.



Global timber and wood market reporting is included in the 52-page quarterly publication Wood Resource Quarterly (WRQ). The report, established in 1988 and with subscribers in over 30 countries, tracks sawlog, pulpwood, lumber and pellet prices and trade, and market developments in most key regions around the world. To subscribe to the WRQ, please go to www.woodprices.com.
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