Export tariffs on logs shipped from Russia, the world largest log supplier, are set to be reduced as the country becomes a member of the WTO. The proposed new lower tariffs are not expected to increase export volumes to pre-tariff levels, according to the Wood Resource Quarterly.

Seattle, WA -- (ReleaseWire) -- 04/09/2012 -- Log exports from Russia have plummeted the past five years mainly because of the country's implementation of a log export tariff of 25% in 2008, as reported in the Wood Resource Quarterly (http://www.woodprices.com). Despite having suffered a sharp decline in global market share, Russia is still the largest exporter of softwood logs in the world.

When Russia was accepted into the World Trade Organisation (WTO) in December of 2011, one of the requirements for the entry into the organization was that the country had to reduce export and import tariffs on forest products. According to persons close to the negotiation process, the not yet official proposal for the amendment of the Russian log export tariff system will lower the tariffs on softwood logs from 25% to 15% for pine logs, and to 13% for spruce logs. The new proposed tariff for birch will actually be higher than the current tariffs for small diameter logs.

In addition to the lowering of the tariffs, the proposal also includes a volume quota for softwood logs. Below the quota limit, the new tariffs will apply, and for volumes above the quota, current tariffs will continue to be in effect.

The proposed quotas will almost certainly have no impact on trade with the EU, since they are set substantially higher than the volumes shipped in 2011, and are close to the record high levels of 2006. The quota level for countries outside the EU is proposed to be 13 million m3, of which pine species account for 95%. China is the major destination for Russian pine logs, and in 2011, shipments were well below the proposed quota volume. Over the past ten years, there have been three occasions when the annual shipments of pine logs have been higher than the quota volume.

Even with a reduction in export taxes of 12%, it is not likely that foreign log buyers will rush back to Russia to purchase higher log volumes in the coming years since the business climate in the country continues to be challenging in terms of political uncertainty, continued corruption, increasing domestic log costs and infrastructure problems.

This uncertainty makes many forest companies wary about investing or trading with Russia, so they will likely try to diversify their timber sourcing further to include other regions. China, which is the largest importer of Russian softwood logs is increasingly choosing to import lumber rather than logs from its northern neighbor.

For more information regarding the proposed new log export tariffs in Russia, historical log export trends and implications for log trade in Asia and Europe, please consult the latest issue of the Wood Resource Quarterly.

Global timber market reporting is included in the 52-page quarterly publication Wood Resource Quarterly. The report, established in 1988 and with subscribers in over 25 countries, tracks sawlog, pulpwood, lumber and pellet prices and market developments in most key regions around the world. To subscribe to the WRQ, please go to http://www.woodprices.com

Contact Information
Wood Resources International LLC
Hakan Ekstrom
Ph: +1 425 402 8809
info@wri-ltd.com
http://www.woodprices.com

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Last year global demand for softwood lumber increased by 15 percent after having hit a 50-year low in 2009. The rise in demand has pushed lumber prices in North America, Asia and Europe to their highest levels in ten months, reports the Wood Resource Quarterly.

Seattle, WA -- (SBWIRE) -- 11/30/2011 -- Global demand for softwood lumber increased by about 15 percent in 2010. This came after a year when wood consumption worldwide was the lowest it had been in almost 50 years. This upward trend in consumption has continued thus far in 2011, with total volume consumed being more than 15 percent than the same period in early 2010, according to the market publication Wood Resource Quarterly.

Not surprisingly, it is China that has been the major driver in the higher demand for lumber. The country's sawmills are far from being able to meet the increased demand, and as a result there has been a substantial increase in import volumes the past five year, from just over two million cubic meters (m3) in 2006 to 9.4 million m3 in 2010. This unprecedented rise in shipments continued the first two months of 2011 when imports were as much as 32 percent higher than in 2010.

Practically all major lumber markets in Asia, Europe and North America experienced stronger demand last year. This resulted in higher production worldwide and also increased global trade. The world's largest importer, the US, imported seven percent more lumber in 2010 than the previous year, while imports to the third largest market, Japan, were up almost 15 percent. In Europe, shipments were up between 10 and 35 percent to the largest lumber-consuming countries on the continent.

The improved market conditions have resulted in higher lumber prices worldwide. Although the price movements have been rocky, fluctuating substantially in some markets the past 12 months, trends have been up. In the US, southern yellow pine prices were 24 percent higher in March this year as compared to last summer. Similar upward trends have been seen with Douglas-fir lumber in Western US and for spruce-pine-fir lumber in Western Canada.

In both Japan and China, import prices for most species of lumber have trended upward since early 2009, particularly for higher-grade Russian pine to Japan and lower-grade Canadian hemlock to China, as reported in the Wood Resource Quarterly.

Lumber prices can be anticipated to go up in many markets during 2011 for a number of reasons, including expected increased demand in China, somewhat higher lumber imports to Japan for the rebuilding after the earthquake, and continued measured improvements in the US housing market (mainly repair & remodeling and multi-family residential housing).

Global timber market reporting is included in the 52-page quarterly publication Wood Resource Quarterly. The report, established in 1988 and with subscribers in over 25 countries, tracks sawlog, pulpwood, lumber and pellet prices and market developments in most key regions around the world.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Japan is in urgent need of pre-fabricated houses and manufactured wood products in the aftermath of the earthquake and tsunami that hit the country in early March. Longer term, it can be expected that imports of commodity products such as plywood, lumber and logs will increase to this country, which is already one of the largest importers of wood products in the world, according to the Wood Resource Quarterly

Bothell, WA -- (SBWIRE) -- 07/05/2011 -- The earthquake and tsunami that hit Japan on March 11 is first and foremost a humanitarian tragedy that is difficult to comprehend. Over 10,000 people died during and in the immediate aftermath; more than 400,000 people lost their homes and 100-150,000 buildings were destroyed. The re-building of towns, roads, railways and the power grid in the impacted region northeast of Tokyo will be a lengthy and difficult undertaking.

Much is still uncertain regarding short-term and long-term changes in the importation of forest products as a result of the catastrophe, but the need for construction material is going to be considerable in the coming years. Initially, there have been requests from Japanese authorities and trading houses for pre-fabricated houses. There have also been inquiries for glue-laminated products and other pre-cut wood products that more quickly can be used for re-building efforts, as opposed to need for basic commodities such as lumber and plywood. To start with, the government has asked for 30,000 temporary houses within two months.

Japan is one of the largest importers of wood products in the world. In 2010, the country imported wood raw-material (logs and chips) and processed wood products valued at more than ten billion dollars, which was 20 percent more than in 2009, as reported in the Wood Resource Quarterly. Japan was the biggest importer of wood chips and plywood, the second largest importer of logs, and was ranked the third biggest importer of lumber in the world last year.

It is not likely that imports of lumber and sawlogs will increase much in the next few months before ports and access roads have been cleared and the power has been restored for at least the most basic needs. Over the next 6-12 month, it can be expected that there will be a rise in demand for both lumber and plywood. This will result in increased importation of processed products and of logs to supply domestic Japanese mills. Based on contacts already established between importers in Japan and manufacturers around the world, it is probable that there will higher shipments of softwood lumber from Canada, the US, Russia, Sweden and Finland later this year. The major suppliers of plywood will most likely continue to be Malaysia, Indonesia and China.

Japan imported 3.6 and 4.1 million m3 of softwood logs in 2009 and 2010, respectively. As the domestic forest industry increases production later in 2011, imports of logs predominantly from the US, Canada, New Zealand and Russia can be expected to increase to their highest levels in at least three years.

Global timber market reporting is included in the 52-page quarterly publication Wood Resource Quarterly. The report, established in 1988 and with subscribers in over 25 countries, tracks sawlog, pulpwood, lumber and pellet prices and market developments in most key regions around the world.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Sawlog prices in Western US were up about 20 percent in 2010 as an result of increased competition for logs from log buyers in China, South Korea and Japan, according to the North American Wood Fiber Review. Prices for logs in the US South and Canada also moved up last year, but at a slower rate. Sawmills in Western Canada currently have some of the lowest wood costs in the world.

Bothell, WA -- (SBWIRE) --05/31/2011 -- Softwood sawlog prices have trended upwards in all major regions of North America over the past two years. The biggest increases have occurred in the US Northwest, where the log export market has had a major impact on the supply-demand balance. Total log shipments to Asia from the US west coast last year were the highest they have been in 14 years, and much of this increase was the result of China's seemingly never-ending need for wood raw-material. The US Southeast and US South Central are the sub-regions where log prices have increased the least since 2009; in fact, prices in these regions even fell slightly late last year, according to the North American Wood Fiber Review.

In the 4Q/10, Douglas-fir log prices in the Northwest were up 19 percent from the same quarter in 2009. Hemlock sawlog prices, which increasingly have been influenced by log exports to China and South Korea, have gone up over 25 percent the past 12 months. With the recent price increases, sawmills in the West now have higher wood raw-material costs than sawmills in the South, which is opposite to the situation in 2009. Price levels in the Southern states are currently close to their nadir of 15 years.

Sawlog prices in Canada have followed the same pattern as in the US, with prices in the Western provinces increasing more than in the Eastern provinces. In the 4Q/10, log prices in British Columbia had moved up to their highest levels in over two years in US dollar terms. Despite the increase, softwood lumber producers in the Interior of the province still have some of the lowest wood raw-material costs on the continent.

According to the Wood Resource Quarterly, Western Canada currently has the lowest sawlog prices in the world. In Canadian dollar terms, prices have fluctuated less in 2010 than they have over the past few years, and Western and Eastern Canada were actually two of the few regions in the world that had lower log costs in the 4Q/10 in the local currency than they did in the 4Q/08.

The North American Wood Fiber Review is the only publication that tracks prices of sawlogs, wood chips, biomass and, pulpwood in the US and Canada. The 36-page market report, which was established over 20 years ago and includes prices and market commentary for 15 regions on the continent.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

The world’s largest log exporter, Russia, increased the shipments of logs in the 1Q/11 after having declined for four years, reports the Wood Resource Quarterly. Russian exports of softwood lumber have also gone up substantially, especially to China, Uzbekistan, Japan and Egypt.

Bothell, WA -- (SBWIRE) --05/17/2011 -- Russia has for many years been, by far, the largest exporter of logs in the world. When the country announced a log export tax of 25 percent in 2007 and the intention to increase this tax to 80 percent in 2009, many forest companies in Asia and Europe decided to reduce their reliance on Russian logs. As a result, total log exports from Russia fell from 51 million m3 in 2006 to about 22 million m3 in 2009 and 2010.

This downward trend, however, appears to have been broken in 2011. During the first few months, total softwood and hardwood log exports have been up by almost 40 percent compared to the same period last year, as reported in the Wood Resource Quarterly. Much of this increase in shipments has been to China, Finland and Japan. This recent upward trend can be expected to continue during 2011 and 2012, albeit less dramatically, as Russian log export taxes are reduced. During discussions between Russian and EU representatives in December last year, it became clear that Russia has been pressured to reduced log export taxes if the country wants to join the World Trade Organisation (WTO).

It is still not clear exactly what the new log export taxes may be and when they will be implemented. Softwood log taxes may fall to somewhere between 5-10 percent, and hardwood log taxes will probably be lower than those for softwood. The lower tax rates are not likely to be instigated until Russia has been recognized as a full member in the WTO, which may not be until early 2012.

Russia has not only increased its exports of logs but also of softwood lumber. From 2008 to 2010, exports were up 18 percent, reaching an all-time high of 17.5 million m3 last year, according to the Wood Resource Quarterly. So far this year, exports have been over 50 percent higher than the same period last year; 2011 may very well be a record-year. China is the largest market for Russian logs, followed by Uzbekistan, Japan and Egypt.

Shipments to China tripled between 2007 and 2010; during the first quarter this year, exports were 150 percent higher than the same quarter in 2010.

The trade of logs and lumber between Russian and China can be expected to expand in the coming years because of the continued increase in demand for wood products in China and the country's relative close proximity to Russian forests and sawmills.

Global timber market reporting is included in the 52-page quarterly publication Wood Resource Quarterly. The report, established in 1988 and with subscribers in over 25 countries, tracks sawlog, pulpwood, lumber and pellet prices and market developments in most key regions around the world.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Global trade of wood chips was up 25 percent in 2010 because of increased production of pulp and paper products worldwide. China showed the greatest growth in chip imports with an increase over 400 percent in the past two years, as reported in the Wood Resource Quarterly. Australia continues to be the major exporter and shipped 11 percent more in 2010 than in the previous year.

Bothell, WA -- (SBWIRE) -- 04/11/2011 -- The international financial crisis in 2009 had a major negative impact on worldwide demand for pulp and paper products. As a result, the consumption of wood chips and pulpwood for pulp production was lower, and global trade of wood chips fell accordingly. However, in 2010, pulp markets improved and global shipments of wood chips were up substantially.

Wood chip trade had increased on average five percent per year between 2002 and 2008, reaching an all-time high of approximately 33 million tons in 2008. This upward trend was broken in 2009, when trade fell 17 percent from the previous year. In 2010, wood chip shipment volumes went up by 25 percent to reach a new high. This was primarily thanks to a substantial increase in demand for wood chips in China, as reported in the latest issue of the Wood Resource Quarterly.

China has evolved from being a net exporter of chips five years ago, to being a major chip consumer, having quadrupled imports in just two ears. The country now imports over 28 percent of all chips traded in the Pacific Rim and is the world's second largest importer of wood chips after Japan.

Trade of wood chips is still the highest in the Pacific Rim, accounting for almost 60 percent of the total global trade and over 95 percent of water-born trade. The major exporting countries in 2010 have not changed much from previous years, with Australia being the biggest exporter followed by Chile, Vietnam, the US and Thailand. These five countries together export just over 19 million tons, or 22 percent more than the previous year, according the WRQ. A majority of the shipments are Eucalyptus wood chips destined for pulp mills in Japan and China.

Trade of wood chips is likely to increase in 2011 as the global economy slowly recovers, and as a consequence, the demand for most forest products will improve. In addition, many energy companies in Europe are searching for new sources of biomass, which will further expand the overseas trade of wood chips, biomass chips and wood pellets.

Global timber market reporting is included in the 52-page quarterly publication Wood Resource Quarterly. The report, established in 1988 and with subscribers in over 25 countries, tracks sawlog, pulpwood, lumber and pellet prices and market developments in most key regions around the world.

Contact Information
Wood Resources International LLC
Hakan Ekstrom
info@wri-ltd.com
http://www.woodprices.com

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

The value of softwood logs and lumber exported from North America to China reached over 1.6 billion dollars in 2010, which was 150 percent higher than the previous year and more than ten times as much as in 2006, reports the Wood Resource Quarterly.

Bothell, WA -- (SBWIRE) -- 02/17/2011 -- China has come to the rescue for many sawmills and timberland owners in the US and Canada the past year. The value of softwood logs and lumber shipped from North America to China is estimated to reach over 1.6 billion US dollar in 2010, which is up dramatically from just a few years ago. In 2008, total exports were valued at 350 million dollars, while they were only 125 million dollars five years ago.

The increased demand for both wood raw-material and processed forest products in China has, to a large degree, benefited the forest industry in British Columbia and the states of Washington and Oregon in the US. It is interesting to note that the two countries have chosen different paths over the past few years. In Canada, sawmills historically shipped over 90 percent of their exports to US markets, but this changed as demand for lumber fell when the housing bubble burst in 2008. In the 3Q/10, less than 70 percent of exported lumber was destined for the US market. On the other hand, lumber shipments to China have gone up seven-fold the past three years and are expected to reach almost four million m3 in 2010, reports the Wood Resource Quarterly. This makes Canada the largest softwood lumber supplier to China, having surpassed Russia in the 4Q/10.

Another factor that has had an impact on the higher Canadian lumber exports to China is the abundant supply of low-cost beetle-killed timber in British Columbia. Sawmills in the Interior of the province have increased their production levels lately, ending up almost 20 percent higher in the 3Q/10 as compared to the same quarter in 2009. Much of the additional volume has been low-grade lumber targeted for the construction market in China. An estimated 16 percent of the BC lumber production in 2010 was exported to China.

While Canada has drastically raised lumber shipments to China in recent years, the US has instead expanding exportation of logs to Chinese sawmills and plywood manufacturers. In 2007, the US exported less than 100,000 m3; in 2010 an estimated 2.4 million m3 was exported. The US is now the third largest softwood log supplier to China, after Russia and New Zealand. The strong export market has caused sawlog prices in the US Northwest to go up more than in any other region of North America the past year, according to the Wood Resource Quarterly.

Global timber market reporting is included in the 52-page publication Wood Resource Quarterly. The report, established in 1988 and with subscribers in over 25 countries, tracks sawlog, pulpwood, lumber and pellet prices and market developments in most key regions around the world.

Contact Information
Wood Resources International LLC
Hakan Ekstrom
info@wri-ltd.com
http://www.woodprices.com

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Sawlog costs in Europe have gone up more than lumber prices the past year, reports the Wood Resource Quarterly. With the expected decline in lumber consumption, many sawmills in Europe are considering reductions in their operating rates. As a consequence, prices for sawlogs are likely to drop from their two–year highs in the coming months.

Bothell, WA -- (ReleaseWire) -- 02/16/2011 -- Over the past year, the sawmilling sector in Europe has shifted from high production levels and the highest lumber prices in four years, to weakening lumber demand and reduced prices for many lumber grades during this fall.

European lumber production fell by six percent to 93 million m3 in 2009, which was the lowest level in eight years. The biggest declines in volume came in Austria, Finland and Sweden, while lumber production in Germany and Romania bucked the general trend and increased last year. Although last year was a low point for the sawmilling industry, the lumber markets improved in the second half of the year and into the spring and early summer this year, reported Wood Resource Quarterly.

Total exports by the four largest lumber-producing countries in Europe, Sweden, Germany, Austria and Finland, have been slightly higher the first eight months of 2010 as compared to the same period last year. Exports from Sweden declined by seven percent while the other three countries increased shipments substantially. The Finnish sawmilling industry in particular, has had a much better year this year than in 2009. During the first nine months of 2010, lumber production was up 27 percent from the same period last year, with most of the additional production being exported.

The high operating rates at many sawmills in Europe the past year have resulted in increased costs of logs throughout the continent. Softwood sawlog prices have gone up between 15-40 percent in the major lumber-producing countries since early 2009, according to the Wood Resource Quarterly.

With the probability of reduced lumber demand in Europe during the upcoming winter season, lumber prices may continue to weaken. This development is problematic because sawlog prices have reached their highest levels in almost two years, which will squeeze the profitability for many sawmills. Consequently, it is likely that many sawmills will reduce operating rates in the coming months, and as a result, sawlog prices can be expected to decline during this quarter and the first quarter of 2011.

Global timber market reporting is included in the 52-page publication Wood Resource Quarterly. The report, established in 1988 and with subscribers in over 25 countries, tracks sawlog, pulpwood, lumber and pellet prices in key regions around the world and also includes regular updates of the latest developments in international timber, pulp, lumber and biomass markets.

Contact Information
Wood Resources International LLC
Hakan Ekstrom
info@wri-ltd.com
http://www.woodprices.com

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Bothell, WA -- (SBWIRE) -- 11/23/2010 -- More than 80 million tons of wood chips, valued at almost ten billion US dollars, are traded annually in the open market worldwide and the shipment volumes are increasing.

The vast majority of traded wood chips are currently utilized for pulp production, but the volumes used to generate energy are growing. The key participants in this trade, including forest companies, energy producers, trading houses and financial institutions, have requested that FOEX consider including wood chip prices in the company's portfolio of well-established pulp, paper and pellet indices. These FOEX trademarked and audited indices (PIX) have been the benchmark for the global forest industry for a number of years (see www.foex.fi for more information).

WRI, an internationally recognized forest industry consulting firm that specializes in evaluations of global forest resources and wood raw-material prices, including prices of wood chips, already collects and publishes prices of sawlogs, pulpwood and wood chips since 1988 (see http://www.woodprices.com for more information).

FOEX and WRI have agreed to partner in the launching of global wood chip price indices. As for all price benchmarks in FOEX's PIX-index family, the indices will be based on a large number of actual trades and the data will be collected from both sellers and buyers of wood chips. Initially, the price indices will be published separately for pulp and energy end-uses. Detailed index specifications will be published after discussions with the interested parties have been concluded.

The combined efforts of FOEX and WRI, and the PIX-index system, will ensure that the indices, whose launch is planned for early 2011, will be statistically reliable and thus well suited for numerous market participants. These include forest and energy companies who can use price indices for benchmarking, as well as the financial community, which can use the Indices as price risk management tools.

Those who would like to participate in the index formation process or to know more about this new, unique benchmark service, may contact either the FOEX representative in bio-indices, Mr. Matti Sihvonen (matti.sihvonen@foex.fi), or Timo Teraes, the Managing Director (timo@foex.fi), or Mr. Hakan Ekstroem, the President of WRI (hekstrom@wri-ltd.com).

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm