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MTIB News Extracts (Vol.25/06/16)
This weekly 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.
Dr. Jalaluddin Harun Director General Malaysian Timber Industry Board
MTIB News Extracts (Vol.25/06/16)
INDONESIA: EAST KALIMANTAN MAY STOP CONVERTING FOREST LAND
According Wahyu Widhi Heranata from the East Kalimantan Provincial Forestry
Department, the provincial government is considering not allowing the
conversion of forest land into palm oil plantations. Between 1996-2012, the
province has lost an average of 92,900 hectares of land per annum. The province
has met its 1 million hectares of palm oil plantation target. The move will
help to slow down deforestation in the province, said Wahyu.
Bisnis Indonesia, 08 Jun 2016
VIET NAM: USD 2.58 BILLION WOODEN PRODUCTS EXPORTED
Viet Nam exported USD 2.58 billion (EUR 2.27 billion) of wooden products in
January-May 2016. This was a 2.08% increase compared to the same period in
2015. The figures were revealed by Viet Nam's Industry and Trade Ministry. In
2016, the nation is forecasted to export USD 7.2 billion of wooden products.
This will be an increase compared to USD 6.9 billion in 2015. The projection
was revealed by the Handicraft and Wood Industry Association of Ho Chi Minh
City.
Vietnam News, 10 Jun 2016
MTIB News Extracts (Vol.25/06/16)
INDIA: ANTI-DUMPING (AD) DUTIES IMPOSED ON VIET NAM AND INDONESIAN MDF
PRODUCERS
An announcement on the final decision on Anti-Dumping investigations on plain
medium density fibreboard (MDF) imported from Indonesia and Viet Nam has been
announced by the Indian Directorate General of Anti-Dumping and Allied Duties
(DGAD). According to DGAD, local production sector was substantially affected
by imported products from Viet Nam and Indonesia. The DGAD made a conclusion
that three Vietnamese producers and exporters that fully cooperated and
provided answers to its questions were imposed with imposed dumping margins of
0% to 15%, while the others were imposed with dumping margins of 40% to 50%,
said the Viet Nam Competition Authority (VCA).
Anti-dumping duties will be applicable in five years. Duty below the minimum
level is enjoyed by one Vietnamese business, while the other two will see
duties of USD 14.84 (EUR 13.06) per cubic metre and USD 15.95 per cubic metre.
The anti-dumping lawsuit on MDF products were lodged by India after complaints
of Mangalam Timber Products and Greenply Industries. Besides that, duties for
other businesses from Viet Nam and Indonesia stood at USD 63.99 per cubic
metres and USD 64.35 per cubic metres respectively.
Vietnam Investment Review, 09 Jun 2016
MTIB News Extracts (Vol.25/06/16)
JAPAN: OFFICE FURNITURE IMPORTS (HS 940330)
Compared to February, Japan’s March imports of wooden office furniture were
down around 6%. China remains the main supplier of wooden office furniture to
Japan accounting for just over half of all wooden office furniture imports. In
March this year imports from China rose 26% while imports of wooden office
furniture from Poland, one of the main suppliers, dropped a massive 60% but
imports from Italy were flat. The top three suppliers China, Poland and Italy
accounted for almost 80% of Japan’s March imports of office furniture. In
previous months shippers in Portugal were major contributors to Japan’s sources
of office furniture but in March there was a significant fall in imports from
Portugal.
Global Wood, 1 – 15 May 2016
MTIB News Extracts (Vol.25/06/16)
EU: UPTURN IN EU CONSTRUCTION SECTOR ACTIVITY
The Eurostat Construction Production Index shows that EU construction sector
activity turned upward in the last quarter of 2015 and the rising trend
continued into the first quarter of 2016. Strong growth in activity in Germany,
Netherlands, and Spain offset weakening activity in the UK and Poland. Activity
in France and Belgium remained flat during this period. Activity in Italy
remains at a very low level but there were some minor gains in the last quarter
of 2016. Further insight into the EU construction market is provided by the
2015 European Architectural Barometer report published by independent research
agency Archvision in March 2016 based on a survey of 1,600 architects in eight
European countries. The survey indicates slow but consistent growth in European
construction activity in 2015 with faster recovery expected in 2016 and 2017.
Global Wood, 1 – 15 May 2016
MTIB News Extracts (Vol.25/06/16)
FINLAND: FELLING 58.5 MILLION CUBIC METRES
According to the Natural Resources Institute Finland, a total of 58.5 million
cubic metres of wood was felled for industry in Finland in 2015, up 5% from
2014 and 12% above the average of the previous 10 years. This is the highest
felling volume ever recorded in the statistics.
Logs accounted for 24.6 million cubic metres, up 2% from 2014, and pulpwood for
33.9 million cubic metres, up 6% from 2014. Felling from private forests
totalled 48.1 million cubic metres. Felling from forest industry companies'
forests and state-owned forests totalled 10.4 million cubic metres, down 8%
from 2014.
Press Release, Natural Resources Institute Finland, 10 Jun 2016
FINLAND: VALUE OF EXPORTS OF FOREST INDUSTRY PRODUCTS UP 4%
According to preliminary data provided by the Natural Resources Institute
Finland, the real value of Finland's exports of forest industry products
totalled EUR 2.86 billion in the first quarter of 2016, up 4% from the
corresponding period in 2015. Finland's wood imports increased by 6% to 2.34
million solid cubic metres.
MTIB News Extracts (Vol.25/06/16)
In the first quarter of 2016, imports of birch pulpwood totalled 1.03 million
cubic metres and imports of chips 0.65 million cubic metres. Pulpwood,
including chips, accounted for 84% and logs for 11% of Finland's wood imports.
Press Release, Natural Resources Institute Finland, 08 Jun 2016
GERMANY: HARDWOOD VENEER IMPORTS FROM US RISE BY 20%
In the first quarter of 2016 Germany imported USD 6.1 million (USD 5.37
million) worth of hardwood veneer from the US. This was an increase of 20%
compared to the same period in 2015.
Holz Zentralblatt, 29 May 2016
POLAND: FURNITURE TOPS LIST FOR MOST EXPORT GROWTH
A TOP 50 2016 ranking produced by Bank Zachodni WBK shows the 50 exporting
industries in Poland which have the greatest potential of increasing overseas
sales. In first position are furniture and furnishing accessories, which scored
75 points out of a maximum of 100 in the ranking. Furniture exports rose by 7%
year-on-year in 2015 and are predicted to be worth possibly EUR 9 billion (USD
10.23 billion) in 2016. In second place in the table with 60 points are
products made of cereal, milk or flour, exports of which rose by 20.7% in 2015
and which are seen to have great potential for growth. In third place with 55
MTIB News Extracts (Vol.25/06/16)
points are furs. Poland is the leading exporter of furs in Europe with an
estimated 750 farms in existence and the industry rapidly expanding.
Bankier.pl, 07 Jun 2016
SWEDEN: DEMAND FOR CONSTRUCTION WOOD RECORD HIGH
Forest industry group Södra has reported that demand for construction wood was
extremely high in Sweden in April and May; particularly in May when supplies to
Swedish building markets reached record levels. Thanks to low interest rates,
high demand for new homes and beneficial tax deduction regulation, Södra
expects the trend to continue throughout 2016.
Göteborgs Posten, 08 Jun 2016
SPAIN: NEW HOUSING STOCK STARTS TO RUN OUT
It has been indicated that an improvement in activity within the real-estate
sector in Spain is slowing down the oversupply of new homes in the country. In
some cities, the stock of new housing has even become exhausted and there has
been an increase in off-plan sales. According to the Servihabitat Trends
report, this type of property reached 492,000 units in 2015, down 28.3%
compared with the previous year.
MTIB News Extracts (Vol.25/06/16)
It is expected that the downwards trend will become more highlighted in the
coming months, thanks to the pull of housing sales. A 10% increase in
transactions to 440,000 properties is forecast, a rise in demand that will
translate into a 25% reduction in stock to 367,500 homes. It has been
highlighted that distribution is not equal, with some provinces, such as
Murcia, Cuenca and Almeria, having higher levels of vacant new housing than
others. In Madrid, however, it is estimated that new housing stock could run
out in around ten months.
ABC - Spain, 08 Jun 2016
RUSSIA: SOFTWOOD ROUNDWOOD EXPORTS MAY BE BANNED
A bill to ban softwood roundwood exports for five years may be submitted for
consideration of the State Duma. Penalties may be introduced for violation of
the rules: RUB 50,000-100,000 for officials, RUB 300,000-5000,000 for
entrepreneurs without a legal entity, RUB 0.5-1 million for legal entities. In
all cases the timber will be attached. The ban on exports of unprocessed
(round) softwood will help to gradually increase the available wood processing
capacity in Russia, to create more jobs. The adoption of the project will
significantly reduce illegal exports of round timber, as well as replenish the
state budget sales of wood products with higher added value.
Bumprom, 03 Jun 2016
MTIB News Extracts (Vol.25/06/16)
RUSSIA: SUPPLY OF NEW HOUSING DEVELOPMENTS ON OLD MOSCOW TERRITORY UP
According to the analytical centre SRG, the supply in new housing developments
on the old Moscow territories grew by 69.2% to 2.20 million square metres in Q1
2016, compared with the same period of 2015. The supply grew by 39% in business
class apartments, by 14% in economy segment, by 12% in premium segment. The
supply in elite class decreased by 5%. The volume of supply in new apartment
complexes (residential premises which are non-residential on paper; they do not
provide for the residence registration) decreased by 7% in business class, by
5% in elite, by 5% in economy class, by 3% in comfort class. A 1% growth is
registered in premium class apartment segment.
RBC, 06 Jun 2016
CHILE: FORESTRY EXPORTS DOWN 1.8% IN FIRST FOUR MONTHS
Chile's forestry exports dropped 1.8% to USD 1.78 billion (EUR 1.57 billion) in
the first four months of 2016, compared with the corresponding period last
year, according to data from Infor. Growing demand from China and the US was
not enough to boost exports during the period that were affected by lower
prices compared to 2015. Of a total of 20 products assessed by Infor, only one,
bark less Eucalyptus chips, saw an annual rise in cost, of a modest 0.6%. The
other 19 products saw price reductions.
MTIB News Extracts (Vol.25/06/16)
Despite the economic slowdown in China, forestry exports to China rose 13%
year-on-year to USD 467.07 million in the first four months of 2016. Exports to
the US climbed 3.4% to USD 280.47 million. Both markets concentrate 42% of
Chile's forestry exports. Chile's forest industry chamber Corma expects the
sector's exports to hit USD 5.4 billion this year, which is the same amount
recorded in 2015. Corma believes that all negative effects may stabilise
throughout the year and highlights that some long-fibre pulp producers are
trying to increase their prices, although timidly at the moment.
El Mercurio, 08 Jun 2016
NEW ZEALAND: NEW ZEALAND’S INDIGENOUS FORESTS
New Zealand's 6.4 million hectares of indigenous forest comprising mainly
beech, kauri, rimu taraire and tawa are located in the mountains on the West
Coast of the South Island. Less than one percent of New Zealand's total forest
production is harvested from indigenous forests. The main threats to these
forests are introduced animals and plants and an increasing demand from people
for access and recreational opportunities.
Itto.int/mis_detail, 1 – 15 June 2016
MTIB News Extracts (Vol.25/06/16)
US: HOMES FOUND TO BE 61% BIGGER IN 2015 FROM 40 YEARS AGO
According to the data from the Census Bureau, the new single-family homes'
median size was at 2,467 square feet in 2015, 61% bigger than in 1975 and 11%
bigger than 10 years ago. The homes are also having more amenities like air
conditioning and bathrooms. In 2015, about 93% new homes had air conditioning
as compared to 46% in 1975. Around 96% new homes had a minimum of two bathrooms
as compared to 60% in 1975. The increase in home size partly explains the
increase in prices. In 2015, median sales price was USD 296,400 (EUR
260,759.55) for a new home. The new home prices hit a record in 2016 even when
adjusted for inflation.
Wall Street Journal (The) - US, 02 Jun 2016
US: ECONOMIST EXPECT 1.8% GDP GROWTH
According to the National Association for Business Economics' (NABE) survey of
economists, the median estimate of gross domestic product (GDP) growth is just
1.8% in 2016 as compared to 2.2% expected in March 2016. The estimate for 2017
is a 2.3% GDP growth. Corporate profit growth is also expected to be at a
negative 2% in June 2016 as compared to a forecast of a 2% increase in March
2016. A total of 57% of the economists have said that the election-related
uncertainty has led them to decrease expectations.
MTIB News Extracts (Vol.25/06/16)
Another factor that has led to a decline is that recruitment has slowed,
reducing from 5% to 4.7% in May 2016 but the decline has been due to almost
half-million unemployed people in the US stopping their search for job and thus
not being counted as unemployed. A total of 49% of economists expect low oil
prices to have a positive impact on economic growth as compared to 18%
expecting a negative impact. For 2017, 55% expect a positive impact and 7%
expect a negative impact. Home prices are expected to rise 5% for the fourth
quarter of 2016. The median estimate is that home-prices growth will slow to
4.3% in 2017.
Chicago Tribune, 06 Jun 2016
GLOBAL: WORLD BANK LOWERS 2016 GROWTH FORECAST TO 2.4%
The Global Economic Prospects Report by the World Bank has lowered its 2016
global growth forecast to 2.4% from 2.9% in January 2016. The downward
adjustment is attributed to weak global trade, sluggish growth in advanced
economies, diminishing capital flows and stubbornly low commodity prices.
Advanced economies have deteriorated on the back of weak manufacturing activity
and global trade, and are now struggling to gain traction.
MTIB News Extracts (Vol.25/06/16)
As for emerging economies, growth will likely remain robust in India, which is
projected to grow 7.6% in 2016. China is expected to expand by 6.7%, compared
to 6.9% in 2015, while Russia and Brazil are set to remain in deeper
recessions. Expansion in East Asia and the Pacific is forecast to drop from
6.5% to 6.3%, but remain flat at 4.8% excluding China. Growth will likely be
driven by strong consumption due to low commodity prices (in Viet Nam, Thailand
and the Philippines), as well as increased investment in Malaysia, Indonesia
and Thailand.
Meanwhile, South Asia is projected to grow 7.1% in 2016, slightly higher than
7% in the preceding year amid slowing export growth. The World Bank called for
fiscal spending to focus on infrastructure, as well as other areas such as
promotion of productivity-enhancing technologies, diversification of economic
activities, structural economic reforms, and increased emphasis on trade
facilitation.
Business Times - Singapore, 08 Jun 2016