2018 International Forest Industries December 2017 January 2018 | Page 16

LUMBER PROCESSING NEWS

Global Timber and Wood Products Market Update

Roughly half of all hardwood chips traded in the Pacific Rim have been destined for Chinese ports in the 1H / 17 with Vietnam and Australia being the major suppliers , reports the Wood Resource Quarterly
Pulpmills in China and Japan continue to rely on large volumes of imported hardwood wood chips from a number of countries around the Pacific Rim . The biggest changes in trade over the past five years , according to the Wood Resource Quarterly , have been the increase in chip exports from Vietnam , record import volumes to China and a shift in Australian export shipments from Japan to China .
Seattle , USA . Shipments of hardwood chips in the Pacific Rim have increased for six consecutive years and reached a record-high of 22.9 million odmt in 2016 . Last year was also the year when China took
over Japan ’ s role as the world ’ s largest importer of hardwood chips - roughly half of all hardwood chips traded in the Pacific Rim were destined for Chinese ports in 2016 . Based on import volumes to China in the first nine months of 2017 , it is likely that Chinese imports will hit a new record high of over 11.5 million odmt in 2017 , according to the Wood Resource Quarterly ( WRQ ).
There have been a number of alterations in the trade flows of hardwood chips in the Pacific Rim over the past decade based on price fluctuations , chip quality preferences and changes in business relationships . In the latest issues of the WRQ we have chosen to highlight how the chip trade has evolved from 2012 to 2016 as an example of the shifting market that exists in this part of the world . The major changes
over the past five years have been Vietnam ’ s expansion in exports to both China and Japan , Australia ’ s increase in shipments to China ( equal to Vietnam ’ s volumes in the 2Q / 17 ), Chile ’ s diversion of volumes from Japan to China , and Japan ’ s increasing reliance on hardwood chips from Vietnam and South Africa , at the expense of Australia and Chile . The top-five trade flows of hardwood chips in 2016 were ( more details in the WRQ ): 1 . Vietnam – China 2 . Australia – China 3 . Vietnam – Japan 4 . Chile – Japan 5 . Australia – Japan
During the first half of 2017 , hardwood chip shipments from most of the major supplying countries in the Pacific Rim
have gone up with the notable exceptions of Australia , Thailand , Brazil and Uruguay , which reduced their export volumes by between four and twenty-one percent as compared to the first half of 2016 . The biggest increases in chip supply to Japan and China yearover-year have been from Chile and Indonesia . Chilean chip exports are likely to reach a new all-time high in 2017 and the country will remain the third largest chip exporter in the world .

AKD Softwoods looks at CHH mills

Carter Holt Harvey ( CHH ) and Associated Kiln Driers ( AKD ) are in advanced negotiations regarding the potential purchase of the Yarram sawmill located at Yarram , Victoria and the Caboolture sawmill located at Caboolture , Queensland by AKD . At this stage , no agreement has been reached by the parties to proceed with the proposal , and any subsequent agreement is expected to be subject to certain conditions .
The Yarram mill processes approximately 150,000m3 of sawlogs and produces a range of outdoor products primarily for the Victorian market . The Caboolture mill processes approximately 215,000m3 of sawlog and produces a range of structural timber for the Queensland and Northern NSW market . All existing employees of these mills ( approximately 50 at Yarram and 100 at Caboolture ) will be offered on going employment .
“ We see these businesses as well-run operations that will be a perfect fit for the AKD Group . They provide us with a greater range of products to offer our existing customers and provide AKD with access to new markets and customers . Overall they help us become internationally competitive ” said CEO Shane Vicary .
If this purchase of the Yarram and Caboolture sawmills by AKD goes ahead , there will be no impact on our existing operations and employment . We believe that they will enhance our future and provide growth and stability .
AKD currently processes 700,000m3 of sawlog at its Colac mills and has 450 employees . If this transaction goes ahead we will process over 1 million m3 of sawlog and employ over 600 staff . This would make us the second largest sawmilling company in Australia .
Over the years we have grown our business through a combination of strategic acquisitions and capital investment in our core business . The proposed acquisition continues this approach . We believe that the future demand for quality virgin wood fibre for use in the construction of detached and multistorey residential and commercial construction is strong . The access to well managed plantations with long term supply agreements is at the core of this transaction . We are committed to providing quality locally grown and produced products , from renewable resources , having a carbon neutral or better impact on the environment .
AKD CEO Shane Vicary .

Conifex El Dorado joins Southern Forest Products Association

Conifex El Dorado , Inc . of El Dorado , Arkansas , joins Southern Forest Products Association ( SFPA ) as a new lumber manufacturer
member .
To further diversify the company ’ s product and geographic reach , Conifex has upgraded and restarted an idled sawmill complex in El Dorado , with an estimated annual capacity of 180 million board feet .
14 International Forest Industries | DECEMBER 2017 / JANUARY 2018