OSB imports to Russia increased 70% in the first half of 2010, Lesprom study finds; Latvia's Bolderaja dominates market, with 50% of deliveries, other leading names have notable market shares

LOS ANGELES, August 12, 2010 (Forestweb) – OSB imports to Russia increased 70% in the first half of 2010, according to a study entitled Russian OSB Market Review by Lesprom. OSB import growth rates returned to pre-crisis levels, while export prices grew by 16%.

Major OSB suppliers to Russia were Latvia, Canada, Germany and Poland, which jointly accounted for 84.5% of the total import volume in the first six months. The largest single company supplying OSB to Russia is Bolderaya Ltd. in Latvia, which accounts for more than 50% of all deliveries.

Several other suppliers also have notable market shares, including Glunz (Germany), Kronopol (Poland), Norbord (Canada), Louisiana-Pacific (U.S.), Kronospan (Czech Republic and Romania), and Egger (Germany). Among major Russian OSB importers in the first half-year were East-Trade of Nizhniy Novgorod and AVS-Logistik in Ryazan, which jointly accounted for 30% of all Russian OSB imports.

 

British Columbia is spending C$3M-$6M per day fighting wildfires, says forests minister; NDP forestry critic accuses government of under-budgeting

KITIMAT, August 11, 2010 (Northern Sentinel) – B.C. is already $4 million over budget for fighting wildfires, with 98 wildfires larger than 10 hectares still burning across the province.

Forest Minister Pat Bell said the combination of a record-breaking dry July and dry lighting storms in the Cariboo has created a surge of new fires.“Eight days ago we had about 700 fires in the province,” Bell said on Wednesday. “In a period of a week we’ve had about 500 starts.”As of Thursday morning 1,267 wildfires have been reported in B.C. this summer, burning 93,333 ha. of forest. Of those 385 fires were in the Prince George Fire Centre region, affecting 9,628 ha. Bell said the province budgeted $51.7 million for combating wild fires this year. As of Wednesday morning $56 million had been spent.“A week ago I’d have told you we were on target for the budget this year. We’ve been averaging $3-6 million per day since last week,” Bell said.

Currently there are 1,200 ministry fire fighters, 1,500 contractors and 300 out-of-province fire fighters working in B.C. to combat the fires. Since 2002, B.C. has only come in under budget for wildfire protection twice. B.C. NDP forestry critic Norm MacDonald said the B.C. Liberals have consistently under-budgeted for fire protection. “The B.C. Liberals have not made a commitment to accurately forecasting a budget,” MacDonald said. “There is a mechanism for fairly, accurately putting in the number for wildfire. Take a five-year average, 10-year average. But this government continues to just pull a number out of the air.”

In 2001, the NDP budgeted $85.7 million for wildfire control. In 2002 the Liberals cut that to $55.4 million.
Between 2002 and 2009, the Liberals budgeted $55.4 million to $61.7 million for fire control. During that period the average cost for fire control was $168.4 million — with actual costs ranging from $37.8 million to $382.1 million per year. In 2010, the fire protection budget was cut to $51.7 million.

MacDonald said the money is being spent to do the job, and there is no argument that it needs to be, but the Liberals are not being honest with the public about how much it is expected to cost each year. “We’re nowhere close to putting in a forecasted budget,” MacDonald said. “You should expect to be within a range of getting it accurate.” The baseline budget for fire control provides a basic level of service, Bell said. Inside of tying money to fire control, several hundred million dollars is allocated in contingency funds to deal with emerging situations. “One year may bring us fire, another may bring us floods,” Bell said. “We have a statutory fire account that enables me to authorize to spend whatever is necessary to combat fires without having to go to the Treasury Board. To my knowledge, it’s the only account like that in government.”

Trends in fire control will be incorporated into the budget for 2011 and beyond, he added. The government has not been on budget for fire control since 2005.

“I don’t know that five years is necessarily a trend,” Bell said. “But as we get into the fall months, certainly we will incorporate this year into our planning process.”

WFP may relocate management team to branch operations after selling its Duncan, British Columbia, headquarters, says spokesman

COWICHAN, British Columbia, August 12, 2010 (News Leader & Pictorial) – Western Forest Products’ management team could eventually be relocated to various branch operations as the Duncan-based timber giant sells its corporate headquarters here, a WFP spokesman said. WFP brass isn’t making any hasty moves before its Duncan Financial Building at 435 Trunk Road is sold, signalled spokesman Gary Ley. “We’ve had a few offers and we’re in the middle of evaluating those, but nothing’s been signed or confirmed,” he told the News Leader Pictorial Friday.

WFP’s 36,900-square-foot Duncan building is listed with Colliers at $2.25 million. “Our (Duncan) people may be relocated to some of the mill operations.” But earlier ideas bosses at prudently run WFP had to move Duncan staff to leased offices in Nanaimo are complicated. “It’s not as simple as taking people in Duncan and moving them to location X,” Ley said. Meanwhile, it’s status quo for WFP at the Cowichan Bay sawmill, and its Chemainus sawmill and value-added plant, he explained. “The company’s presence in the Cowichan Valley will remain very strong but in a slightly different form.”

WFP’s leaner, meaner focus under, CEO Stephen Frasher, has yielded results for B.C.’s largest timber company. On July 30, the forest firm — focused on cedar production — announced second quarter earnings of $20.9 million before interest, taxes, depreciation and amortization. That figure compares to a $16-million EBITDA loss in the same quarter a year earlier. On its labour front, WFP leaders announced July 26 they’d reached a tentative four-year contract agreement with the United Steelworkers Union. That deal includes Cowichan based Local 1-85 and other locals. The contract needs ratification by union members in the next few weeks. WFP’s former contract with the USW, the Coast Master Agreement, expired on June 15.

September lumber futures contract reaches six-week low as confidence in market weakens, closes on Wednesday at US$198.40/mbf

LOS ANGELES, August 12, 2010 (Forestweb) – The lead September lumber futures contract reached a six-week low on Wednesday as prices continued to head downward on weakening confidence in the market, Dow Jones reported Aug. 11. September closed down US$1.70 per thousand board feet (mbf) at $198.40, while November closed $5.80 lower at $201/mbf and January was $1.40 lower at $223.40/mbf.

One market consultant said it had not been a good day all around with the Dow Jones Industrial Average and major currencies lower. Cash markets remained weak as mills began to sell at lower prices in response to pressure from buyers. Some British Columbia mills were reported to be accepting significant discounts, and there were also concerns about the profitability of some export markets. Dow Jones Newswires published a mill-level price for SPF 2x4s of $210-$215, down $2 from Tuesday.