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Opinion / EdiTOADial

In Washington, the softwood lumber case is seen as a poster child of US trade law enforcement

By Kevin Mason, Managing Director
ERA Forest Products Research
November 11, 2024
Category: Opinion / EdiTOADial
Region: Canada, United States

Kevin Mason

At the Global Wood Summit last week, Zoltan van Heyningen, Executive Director of the U.S. Lumber Coalition, shared the U.S. perspective on the softwood lumber file. Zoltan emphasized that duties are a legal process stemming from administration of U.S. trade law and are distinct from tariffs, which are policy driven trade action. As such, the imposition of duties on Canadian lumber imports is not a policy debate, it is a legal process. Functionally a “Trump tariff” could be in addition to duties. From the U.S. perspective, the softwood lumber trade case has been extremely effective. According to the Coalition, since the case was filed in 2016: Canadian mills have accounted for 74% of curtailments and 60% of mill closures by capacity… and U.S. operating rates are now consistently higher than in Canada, a deviation from historical norms. …In Washington, the softwood lumber case is seen as a poster child demonstrating the positive impact of trade law enforcement on domestic industry.

Our Take: Mr. van Heyningen was very clear regarding the disposition of duties that have been collected—the majority won’t be treated any differently than other duties collected by U.S. Customs and would be liquidated into the Treasury. Trade deals, such as the prior Softwood Lumber Agreement, are very rare, but the door remains open for a negotiated settlement. However, there has to be “something in it” for the U.S. Coalition (and its members). We suspect that 10 cents on the dollar will not suffice this time around as Canadians have a weaker hand this time if/when negotiations commence. …We do not foresee pricing remaining in this upward trend through year-end and into 2025, and a seasonal slowdown in demand after U.S. Thanksgiving should precipitate a pullback in pricing later this quarter. However, supply and demand are clearly better matched today than they have been at any point over the past couple of years.

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Business & Politics

Montreal dockworkers’ union rejects offer; lockout begins

By Divya Rajagopal
Reuters
November 11, 2024
Category: Business & Politics
Region: Canada

The Montreal Longshoremen’s Union rejected a final offer made for a new labour contract, leading to a lockout being declared, the Maritime Employers Association (MEA) and the union said on Sunday. The MEA said the lockout will impact nearly 1,200 port workers at the Canadian port that handled 8.7 million metric tons in the third quarter of 2024. The lockout will further slow Canadian imports and exports at a time the Port of Montreal was already operating at partial capacity and as West Coast ports are stopped due to a separate dispute. The union representing longshoremen at the Port of Montreal said the offer was rejected by 99.7% of members because the employer refused to negotiate. Two terminals operated by Termont, representing about 40% of Montreal’s container traffic and 15% of total port volume, have been shut down since Oct. 31. However, after Sunday’s announcement all longshoring at the port will be locked out. 

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Talks break off in B.C. port dispute as bid to end multi-day lockout fails

The Canadian Press in CBC News
November 10, 2024
Category: Business & Politics
Region: Canada

VANCOUVER — Contract negotiations in a labour dispute that has paralyzed container cargo shipping at British Columbia’s ports since Monday have been called off. In an update posted to their website on Saturday night, the B.C. Maritime Employers Association (BCMEA) says they and the International Longshore and Warehouse Union (ILWU) Local 514 met separately with the Federal Mediation and Conciliation Service (FMCS) and “there was no progress made.” “On that basis, the FMCS concluded the mediation, and no further meetings are scheduled,” the employers said in a release. The union for locked-out workers is accusing employers of abruptly ending contract talks early. …The union, which represents more than 700 longshore supervisors at ports including Vancouver, Prince Rupert and Nanaimo, has been without a contract since March last year. …Federal Labour Minister Steven MacKinnon intervened earlier during the strike to speak with leaders on both sides, asking them to restart talks.

Related in the Vancouver Sun: Ottawa urges both sides ‘do the work’ to get a deal done

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Trump 2.0 could hurt Canada’s economy, we should fight back with pro-growth policies of our own

By Jack Mints
The Financial Post
November 8, 2024
Category: Business & Politics
Region: Canada, United States

In a way, the stock market’s vote of confidence was surprising: Trump’s economic platform is a mix bag. Tax relief and deregulation are popular with investors, but trade-disrupting tariffs and budget-busting deficits could push up interest rates down the road. For Canadians, however, the Trump bag is not so mixed: new economic threats from Trump’s America are clearly on their way. …A lower corporate income tax rate, deregulation and energy renewal will be magnets for investment from Canada. Tariff policy and a review of NAFTA 2.0 would be especially harmful as we would be shut out of U.S. markets. Given nationalistic economic leanings on both sides of the aisle in Congress, we should expect more not fewer trade restrictions in the next four years. What should we do? Two things. Create a new growth agenda and work hard to protect our access to the huge U.S. market. 

In related coverage:

 

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Port negotiations are set to resume in BC, Montreal calls on Trudeau to end strike

By Chuck Chiang
The Vancouver Sun in the Canadian Press
November 7, 2024
Category: Business & Politics
Region: Canada

VANCOUVER — Talks are set to resume between the union representing more than 700 locked-out British Columbia port supervisors and their employers. A representative for the International Longshore and Warehouse Union Local 514 said they have been ordered back to the table with the BC Maritime Employers Association and federal mediators on Saturday at 5 p.m. and that Sunday and Monday have been set aside for talks to continue if necessary. …Federal Labour Minister Steven MacKinnon had earlier Thursday criticized a lack of progress in talks to end the dispute, as well as a dockworkers strike at the Port of Montreal, saying there had been a “concerning lack of urgency.” …MacKinnon said he was “closely monitoring” bargaining in the disputes in B.C. and Montreal, which he described as “progressing at an insufficient pace.”

In related coverage:

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BC businesses brace for the higher tariffs Trump promised – could hit manufacturing and forestry sectors

By Katie DeRosa
CBC News
November 6, 2024
Category: Business & Politics
Region: Canada, United States

B.C. business leaders are bracing for the potential economic impacts of another Donald Trump presidency. Trump has promised to implement new tariffs of at least 10% on all American imports, an attempt to promote made-in-America goods and boost the U.S. manufacturing sector. That could hurt BC manufacturers and the province’s forestry sector, contracting already stagnant economic growth, says Laura Jones, of the Business Council of BC. Tariffs “are terrible for consumers,” Jones says. They could raise the price of certain products — including softwood lumber — for Americans, forcing them to look elsewhere. …David Frum believes Donald Trump could ‘mess up’ the Canada-U.S.-Mexico free trade agreement and hold those countries ‘to ransom’. …A report released last month from the Canadian Chamber of Commerce found that a 10% tariff would shrink the Canadian economy, resulting in around $30 billion per year in economic costs.

Related coverage:

 

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BC ports lockout update: Union says it will challenge Ottawa’s intervention in work stoppages

By Rosa Saba
The Canadian Press in the Vancouver Sun
November 12, 2024
Category: Business & Politics
Region: Canada, Canada West

Steven MacKinnon

The union representing locked-out port workers in B.C. is planning a court challenge after the federal government moved to end the work stoppage. Labour Minister Steven MacKinnon intervened Tuesday to end lockouts at ports in both B.C. and Montreal, directing the Canada Industrial Relations Board to order the resumption of all operations and move the talks to binding arbitration. In B.C., the International Longshore and Warehouse Union Ship & Dock Foremen Local 514 called the government’s move an insult to the union and to workers’ bargaining rights. …Port workers in B.C. were locked out last week in a labour dispute involving more than 700 longshore supervisors, halting container cargo traffic at terminals on the West Coast. Across the country, the Maritime Employers Association locked out 1,200 longshore workers at the Port of Montreal. …Labour experts have warned that the government’s decision to intervene in these disputes could set a dangerous precedent that undermines workers’ rights.

Related commentary by Campbell Clark in the Globe and Mail (requires subscription): Liberals are stuck in the middle, and risking union support

And from the employers: Maritime Employers Association welcomes Minister of Labour’s decision

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B.C. government’s head-in-the-sand approach to forestry issues

By Jim Stirling
The Logging and Sawmill Journal
November 6, 2024
Category: Business & Politics
Region: Canada, Canada West

Frustrations are growing monthly with the BC government’s continuing lack of action on the provincial forestry file. The issues are numerous, growing and urgent. The focus for several of them surround basic subjects like wood fibre availability, the high costs of operating and forest land use planning and priorities. But the government’s head-in-the-sand lack of response is unlikely to change any time soon. …Meanwhile, B.C.s forestry dilemma deepens. Sawmill and wood processing plants continue along the all too familiar path of production curtailments and permanent closure. …“Access to economic fibre has fallen from 60 million cubic metres in 2018 to 35 million cubic metres of actual fibre in 2023, about 42% below the allowable annual cut for the year,” Linda Coady reminded the government. …This in a sector struggling to regain its stature in an increasingly competitive global environment. B.C. is one of if not the highest cost lumber producer in North America. 

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Quebec forest producers demand fair competition and compensation

The Sherbrooke Record
November 12, 2024
Category: Business & Politics
Region: Canada, Canada East

The Fédération des producteurs forestiers du Québec (FPFQ) and the Union des producteurs agricoles (UPA) are calling for immediate action and fair compensation for Quebec’s forest producers, who are struggling against public forest competition and an ongoing lumber dispute with the U.S. The FPFQ’S president, Gaétan Boudreault, highlighted the unfair market conditions: “Several mills are halting operations due to weakened demand. Meanwhile, the Quebec government continues to allocate substantial volumes of public forest wood at low fees and subsidizes its harvest. This saturates the market, driving down prices and forcing mills to prioritize cheaper public wood, impacting private producers’ income.” UPA president Martin Caron argued that private producers are unfairly caught in the softwood lumber conflict. …The FPFQ and UPA urge Quebec’s Minister of Natural Resources, Maïté Blanchette Vézina, to strengthen residual supply principles, requiring mills to source from private forests before accessing public wood.

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Weyerhaeuser Appoints Paul Hossain as Senior VP and Chief Development Officer

Weyerhaeuser Company
November 11, 2024
Category: Business & Politics
Region: United States, US West

SEATTLE — Weyerhaeuser announced the appointment of Paul Hossain as senior vice president and chief development officer, effective January 1, 2025. In this role, he will oversee the company’s Real Estate, Energy & Natural Resources segment, including its Natural Climate Solutions business, as well as Business Development and Acquisitions and Divestitures. Hossain currently serves as vice president of Natural Resources and Climate Solutions for the company. He will be taking over for Russell Hagen, who is retiring at the end of 2024 but will serve as a strategic advisor to support the leadership transition.

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Georgia lawmakers looking to promote emerging markets for struggling timber industry

By Dave Williams
Capital Beat News in the Telegraph
November 7, 2024
Category: Business & Politics
Region: United States, US East

ATLANTA — The state should actively promote developing sustainable aviation fuel and mass timber construction as emerging markets for a struggling timber industry, a legislative study committee recommended Thursday. …“Market volatility and out-of-state closures within the supply chain have posed significant risks,” state Senate President John Kennedy, said at the Senate Advancing Forest Innovation in Georgia Study Committee. …The committee approved recommendations that include funding a Georgia-based nonprofit or research facility that would work to develop innovative forestry markets including sustainable aviation fuel (SAF). …The Federal Aviation Administration recently awarded two grants to help accelerate the development of SAF in Georgia. The other technology included in the recommendations was mass timber construction, …Finally, the report asks the Georgia Forestry Commission and Georgia Forestry Association to put together a list of burdensome regulations that are hurting the timber industry.

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European plywood industry divided over Chinese hardwood imports and anti-dumping measures

Wood & Panel Europe
November 8, 2024
Category: Business & Politics
Region: International

In a significant development for the European plywood industry, the Greenwood Consortium has filed an anti-dumping complaint against Chinese hardwood plywood imports, citing low pricing as a threat to the EU’s plywood sector. This move has sparked an industry-wide debate, dividing opinions between those advocating for industry protection and those concerned about the potential impact on trade, imports, and European consumers. The Greenwood Consortium, a newly established coalition of nine European plywood producers, initially aimed to curb illegal imports of Russian birch plywood entering Europe via China. However, the scope of its campaign has since expanded to include all Chinese hardwood plywood, alleging that these imports are unfairly priced and harm the European industry. …In response, the Plywood Trade Interest Alliance… opposes a broad ban on Chinese plywood, arguing that such restrictions would harm the EU economy, compromise supply chain stability, and strain relations with China.

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Minister Loewen travelling to Japan to promote Alberta forestry trade and investment

Red Deer News Now
November 7, 2024
Category: Business & Politics

ALBERTA – Minister of Forestry and Parks Todd Loewen will be travelling to Japan with a delegation of forest companies on Nov. 8, in an effort to expand market opportunities for Alberta’s forestry products. Provincial officials say Japan is Alberta’s top market for wood pellet exports and the second-largest market for lumber and wood panels. This mission is expected to give Loewen an opportunity to support Alberta’s forestry product manufacturers as they grow sales, trade and investment. …From Nov. 8-15, Minister Loewen and the delegation, including the Alberta Forest Products Association, the Canada Wood Group and the Wood Pellet Association of Canada, will attend the Council of Forest Industries Tokyo office’s 50th Anniversary Wood Forum. While there, the delegation will visit the Canadian Ambassador and meet with Japanese trading partners, as well as current and potential investors.

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Finance & Economics

Value of building permits in Canada increased to $13.0 billion in September

Statistics Canada
November 12, 2024
Category: Finance & Economics
Region: Canada

The total value of building permits in Canada increased by $1.3 billion (+11.5%) to $13.0 billion in September, reaching the second-highest level since the start of the new series in January 2017. Ontario’s construction intentions grew by $1.2 billion (+25.0%) to $5.9 billion in September 2024, leading gains in both the non-residential and residential sectors. …Ontario’s institutional construction intentions push up the non-residential sector. The total value of non-residential building permits increased by $797.5 million (+18.0%) to $5.2 billion in September. However, industrial (-$17.6 million) and commercial (-$9.9 million) construction intentions edged down. …Growth in Ontario’s multi-unit component fuels the residential sector. Construction intentions for the residential sector rose by $540.7 million (+7.5%) to $7.7 billion in September, led by the multi-unit component (+$505.5 million), while the single-family component (+$35.1 million) contributed modestly.

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Implications of global decline in economical softwood fibre varies for lumber, pulp and packaging

By Kevin Mason, Managing Director
ERA Forest Products Research
November 11, 2024
Category: Finance & Economics
Region: Canada, United States, International

Kevin Mason

A topic that was widely discussed at our Global Wood Summit last week was the dwindling supply of “cheap” or economical softwood fibre around the globe. While there remain a couple of major forestry hubs where softwood is abundantly available and still relatively cheap (the U.S. South being the most obvious example), in many key regions the softwood fibre supply is more constrained and has become increasingly costly. The implications of this decline in economical softwood fibre vary depending on the commodity. For lumber, we have already seen the impacts shape global supply dynamics. Lumber output has collapsed in British Columbia given a dwindling softwood fibre resource in the province. …In pulp, we are also seeing a dramatic shift as global softwood pulp capacity shrinks (fibre supply being just one dynamic along with small, aging softwood mills, bans on Russian fibre and a number of other factors) and hardwood capacity increases rapidly. …In packaging, the pivot has been towards growing usage of recycled fibres, but inexpensive hardwood is now making inroads into various packaging grades.

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What Trump’s election could mean for interest rates in Canada

By Rosa Saba
The Canadian Press in Bloomberg
November 8, 2024
Category: Finance & Economics
Region: Canada

Experts say Donald Trump’s election victory could shift interest rate policy in the U.S. as his promised policies risk higher inflation, which could ultimately have implications for Canadian rates and the loonie. Among those promises are large tariffs on imported goods, especially from China, as well as lower tax rates and lighter regulation. Trump has promised that “inflation will vanish completely.” But some have raised concern that his economic policies could actually put upward pressure on inflation, and in turn, slow the pace of interest rate cuts expected from the U.S. Federal Reserve. …Higher inflation would mean the U.S. Federal Reserve could be slower to cut interest rates, and markets are already shifting their bets on how low the central bank is likely to go on rates. …That would make the Bank of Canada more hesitant about cutting rates too quickly,” said Sheila Block, an economist.

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Interfor reports Q3, 2024 net loss of $105.7 million

Interfor Corporation
November 6, 2024
Category: Finance & Economics
Region: Canada, United States

BURNABY, BC — Interfor Corporation recorded a Net loss in Q3’24 of $105.7 million compared to a Net loss of $75.8 million in Q2’24 and a Net loss of $42.4 million in Q3’23. Adjusted EBITDA was a loss of $22.0 million on sales of $692.7 million in Q3’24 versus a loss of $16.7 million on sales of $771.2 million in Q2’24 and Adjusted EBITDA of $31.9 million on sales of $828.1 million in Q3’23. …In Q3’24, lumber production totalled 904 million board feet, representing a 130 million board foot decrease over the prior quarter. This decrease reflects the temporary production curtailments announced on August 8, 2024. …On October 16, 2024, Interfor announced plans to exit its operations in Quebec, Canada, including the sale of its three manufacturing facilities and the closure of its Montreal corporate office. …The Company sold Coastal B.C. forest tenures totalling approximately 125,000 cubic metres of allowable annual cut.

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Conifex Timber reports Q3, 2024 net loss of $3.8 million

By Conifex Timber Inc.
Globe Newswire
November 12, 2024
Category: Finance & Economics
Region: Canada, Canada West

VANCOUVER, BC — Conifex Timber reported results for the third quarter ended September 30, 2024. EBITDA was negative $3.9 million for the quarter compared to EBITDA of negative $7.1 million in the second quarter of 2024 and negative $6.7 million in the third quarter of 2023. Net loss was $3.8 million for the quarter versus net loss of $9.7 million in the previous quarter and negative $8.0 million for the year-earlier quarter. …Shipments of Conifex-produced lumber totaled 29.3 million board feet in the third quarter of 2024, representing a decrease of 24% from the 38.5 million board feet shipped in the previous quarter. …Looking ahead to the final quarter of 2024, our average mill net selling price through the first six weeks of the quarter was 17.5% higher.

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Taiga Building Products reports Q3, 2024 earnings of $14.3 million

By Taiga Building Products Ltd.
Cision Newswire
November 8, 2024
Category: Finance & Economics
Region: Canada, Canada West

BURNABY, BC — Taiga Building Products reported its financial results for the three and nine months ended September 30, 2024. Sales for the quarter ended September 30, 2024 were $423.9 million compared to $456.6 million over the same period last year. Sales decreased by $32.7 million or 7% mainly due to a reduction in commodity products sold. Net earnings for the quarter ended September 30, 2024 decreased to $14.3 million from $21.4 million over the same period last year primarily due to decreased gross margin dollars. …Net earnings for the nine months ended September 30, 2024 were $41.0 million compared to $51.9 million for the same period last year primarily due to a decreased gross margin.

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Stella-Jones reports Q3,2024 net income of $80 million

Stella-Jones Inc.
November 6, 2024
Category: Finance & Economics
Region: Canada, Canada East

MONTREAL, Quebec – Stella-Jones announced financial results for its third quarter ended September 30, 2024. Sales in the third quarter were $915 million, compared to sales of $949 million for the corresponding period last year. Excluding the positive effect of currency conversion, sales were down $44 million, or 5%. Net income for the third quarter was $80 million, compared to net income of $110 million in Q3, 2023. “Despite strong long-term demand tailwinds, we witnessed a slower pace of purchases by our utility customers. Though total sales were lower than anticipated, we delivered a solid quarter EBITDA margin of 17.7% and strong operating cashflows,” said Eric Vachon, President and CEO. …“Utilities continue to forecast meaningful increases in infrastructure investments, evidenced by the longer-term sales contracts secured from new and existing customers.”

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US Sawmill Production Rises in the Second Quarter

By Jesse Wade
The NAHB Eye on Housing
November 11, 2024
Category: Finance & Economics
Region: United States

The production index for sawmills and wood preservation industries rose marginally by 0.2% in the second quarter of 2024. After falling for the previous two quarters, this was the first rise in real output since the third quarter of 2023. The index was 2.2% lower than one year ago, the largest year-over-year decline since falling 4.7% in the fourth quarter of 2021. …The Census Bureau’s Quarterly Survey of Plant Capacity Utilization is another source of interest. …The sawmill and wood preservation industry full utilization rates jumped significantly over the quarter, up from 61.9% to 70.7%. Given this rise, it is surprising that production did not also increase significantly. Average plant hours per week in operation did rise for these firms, up from 47.9 hours in the first quarter to 57.7 hours in the second quarter. …Employment at sawmill and wood preservation firms rose for the first time in six quarters, up to approximately 89,400 employees in the second quarter.

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Framing lumber prices continue to surge amid election optimism and interest rate cuts

By Joe Pruski
RISI Fastmarkets
November 11, 2024
Category: Finance & Economics
Region: United States

Framing lumber prices continued to climb, and traders tried to assess a number of factors that might affect the market moving forward. The US presidential election injected a dose of optimism among some traders. They also weighed the Federal Reserve’s decision to cut the benchmark interest rate 25 basis points, while Freddie Mac noted mortgage rates were still rising. The Random Lengths Framing Lumber Composite Price gained for the sixth straight week, climbing $11 to $441. That is its highest level since August 2023. A fading Southern Pine market was once again an exception to an otherwise upward trend in most framing lumber species. While supply-driven strength persisted in Canada and the western US, downward price momentum mounted in the South. …Western S-P-F prices continued to climb by double-digit increments in most cases. Buyers with immediate needs padded thin inventories with available supplies.

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US cuts Fed rate 25 basis points

By Robert Dietz
NAHB – Eye on Housing
November 7, 2024
Category: Finance & Economics
Region: United States

The Fed cut the short-term federal funds rate by an additional 25 basis points at the conclusion of its November meeting, reducing the top target rate to 4.75%. However, while the Fed noted it is making progress to its 2% inflation target, it did not provide post-election guidance on the pace and ultimate path for future interest rate cuts. …The policy risks for the central bank had recently been between inflation (decreasing risks) and concerns regarding the health of the labor market (risks rising). However, the 2024 election result changes this outlook somewhat. In particular, the election increases the probability of additional economic growth, a tighter labor market, larger government deficits, and higher tariffs. All of these factors can be inflationary, even if they yield other macroeconomic benefits. …Consequently, the Fed will need to recalibrate its economic and policy outlook.

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US Multifamily Developer Sentiment Showed Mixed Results in Third Quarter

By Eric Lynch
NAHB – Eye on Housing
November 7, 2024
Category: Finance & Economics
Region: United States

Confidence in the market for new multifamily housing showed mixed results year-over-year in the third quarter of 2024, according to results from the Multifamily Market Survey by the NAHB.  The Multifamily Production Index (MPI) had a reading of 40, an increase of two points year-over-year, while the Multifamily Occupancy Index (MOI) had a reading of 75, down seven points year-over-year. While demand for rental apartments remains strong enough to support relatively high occupancy rates in existing projects, multifamily builders and developers continue to face many significant obstacles on new projects such as higher construction costs, the cost and access to financing, and the availability of land and regulations.  NAHB forecasts multifamily construction to remain weak for another year before beginning to move back to long-term trends toward the end of 2025.

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US Mortgage Activity Declines in October as Mortgage Rates Increase

By Catherine Koh
The NAHB Eye on Housing
November 6, 2024
Category: Finance & Economics
Region: United States

The Market Composite Index, a measure of mortgage loan application volume by the Mortgage Bankers Association’s weekly survey, decreased 13.9% month-over-month on a seasonally adjusted (SA) basis due to higher mortgage rates. This decline was reflected in both the Purchase and Refinance Indices, which fell by 4.4% and 23%, respectively. However, compared to October 2023, the Market Composite Index is up by 39%, with the Purchase Index seeing a slight 1.9% increase and the Refinance Index higher by 149.9%. The average 30-year fixed mortgage rate reversed its downward trajectory with an increase of 36 basis points (bps), following volatility in the ten-year Treasury yield. This brought the rate back to around the same level as it was in August at 6.53%. However, compared to its peak last October, the current rate is 125 bps lower.

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Wood, Paper & Green Building

Aligning building codes with sustainability

By Stefan Germann
The Canadian Consulting Engineer
November 12, 2024
Category: Wood, Paper & Green Building
Region: Canada

In 2016, Engineers Canada issued the ‘National guideline on sustainable development and environmental stewardship for professional engineers’ to provide guidance to the industry beyond the previous, narrow, discipline-specific activity of ‘protection of the environment.’ In Canada, as well as globally, pressing challenges were being felt due to the adverse effects of—and damage from—pollution and the depletion of resources. …Local, regional, provincial and national governments are taking steps to reduce emissions through incentives, funding, policies and regulations, including emissions-trading programs, carbon taxes and offsets and new standards for energy efficiency and emissions reduction. …There has been some progress made in reform for NBC to reduce embodied carbon, generally revolving around high-performance, energy-efficient buildings. Yet, 93% of carbon emissions associated with these buildings are a result of the construction itself, rather than from energy-efficiency measures.

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Forestry

West Fraser adjusts logging plans for West Bragg Creek

By Howard May
The Cochrane Eagle
November 12, 2024
Category: Forestry
Region: Canada, Canada West

ALBERTA — West Fraser Timber released a report this week, entitled “What We Heard,” summarizing public feedback from an open house in Cochrane last May and also what adjustments they’re contemplating to logging plans for West Bragg Creek and Moose Mountain. Opponents of any logging activity in the recreational area were not placated by the report. West Fraser has revised the planned 2026-27 cut downward by 37%. …West Fraser’s Chief Forester for Alberta, Richard Briand, told the crowd at the Cochrane meeting, that “Input from folks like you can really be helpful.” West Fraser (formerly Spray Lake Sawmills) had planned to clearcut 900 hectares, near West Bragg Creek and another 450 ha. in the Moose Mountain Trail Networks. The total harvest planned for both areas, slated to start in October 2026 is now 556 ha. …“Bragg Creek Wild believes that the West Bragg Creek/Moose Mountain area should be designated as a provincial park.

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Wildfire Risk Reduction projects are planned for the Cariboo-Chilcotin

By George Henderson
My Cariboo Now
November 6, 2024
Category: Forestry
Region: Canada, Canada West

WILLIAMS LAKE, BC — The BC Wildfire Service and the Cariboo Chilcotin Forest District, in collaboration with Alkali Lake Resource Management, will be conducting pile burning above Soda Creek Road and Tolko and West Fraser mills sites. The project, which includes 27.7 hectares of manual labor near private residences, is designed to reduce the wildfire hazard in an area near Williams Lake as well as to help restore grown-in Interior Douglas-fir stands to a more natural state. The scope of the work involves removing the surface and ladder fuels, as well as pruning and thinning out the stand to create crown separation and reduce the risk of high-intensity crown fires. …There is also a project planned for Puntzi Lake Airport. Both projects could begin any day, depending on the weather, and will continue until March 20th of next year.

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Biodiversity protection falling short of targets

By Paul Manly, Nanaimo city councillor
The Nanaimo News Bulletin
November 7, 2024
Category: Forestry
Region: Canada, Canada West

Paul Manley

NANAIMO, BC — Both the federal and provincial governments have committed to protecting 30% of BC’s biodiversity by 2030, but the Nanaimo region’s protected areas currently fall well short of that – less than 2%. …Some of the greatest challenges in our region stem from the E&N land grant of 1887. More than 130 years ago 8,000 square kilometres of Vancouver Island was transferred to private ownership as part of the deal to build the Esquimalt and Nanaimo railway which was a condition for BC to join the Canadian confederation. …Forest companies have been the biggest beneficiaries of the land grant and have realized massive land value increases in the last decade. Mosaic Forest Management manages the planning, operations and product sales for TimberWest and Island Timberlands. Because these lands are private, they fall under the private managed forest land regulations which are less stringent than the B.C. Forest Act which covers crown land.

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U.S. Forest Service enforces restrictions to reduce impact of visitors

By Christina Mendez
KRCR News
November 12, 2024
Category: Forestry
Region: United States, US West

SHASTA-TRINITY NATIONAL FOREST, California — Restrictions are now in place for people who want to visit the Mount Shasta wilderness area of the Shasta-Trinity National Forest. According to the U.S. Forest Service, from now until November of 2026 forest order restrictions to protect the habitat, soil and natural resources of the Mount Shasta wilderness area will be enforced. After those two years are up, the Forest Service will look at the restrictions to decide if they will once again be renewed or expanded upon. According to Wilderness Program Manager Nick Meyer, the restrictions will be in place for the foreseeable future and have been in place for over two decades. Meyer says these restrictions are to help reduce the impacts of the 100,000 or more visitors they receive each year.

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Despite Biden’s promise to protect old forests, his administration keeps approving plans to cut them down

By April Ehrlich
Oregon Public Broadcasting
November 12, 2024
Category: Forestry
Region: United States, US West

On Earth Day in 2022, President Joe Biden declared the importance of big, old trees. “There used to be a hell of a lot more forests like this,” he said, extolling their power to fight climate change. …The president uncapped his pen, preparing to sign an executive order to protect mature and old-growth forests on federal lands. “I just think this is the beginning of a new day,” Biden said. But two years later, at a timber auction in a federal office in Roseburg, Oregon, this new day was nowhere to be seen. …Up for sale were the first trees from an area of forest the Bureau of Land Management calls Blue and Gold. A week after Biden’s executive order, the Blue and Gold logging project had been shelved. Now it was back on. The BLM is moving forward with timber sales in dozens of forests like this across the West.

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Rayonier Announces Timberland Dispositions Totaling $495 Million

By Rayonier Inc.
Business Wire
November 6, 2024
Category: Forestry
Region: United States, US East

WILDLIGHT, Florida — Rayonier announced completed and pending timberland dispositions totaling ~200,000 acres for an aggregate purchase price of $495 million (~$2,475/acre) as part of its previously announced asset disposition and capital structure realignment plan. The dispositions consist of approximately 91,000 acres in Southeast Oklahoma and 109,000 acres on the Olympic Peninsula in Northwest Washington. The properties were sold through four separate transactions to high-caliber institutional investors. …The dispositions align with the Company’s previously stated goal of enhancing shareholder value by capitalizing on the disconnect between public and private timberland values and reducing leverage amid a higher interest rate environment. 

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Planting trees at high latitudes in the Arctic could accelerate rather than decelerate global warming, argue scientists

By Aarhus University, Denmark
Phys.Org
November 7, 2024
Category: Forestry
Region: International

Tree planting has been widely touted as a cost-effective way of reducing global warming, due to trees’ ability to store large quantities of carbon from the atmosphere. But, writing in the journal Nature Geoscience, an international group of scientists argue that tree planting at high latitudes will accelerate, rather than decelerate, global warming. …According to lead author Assistant Professor Jeppe Kristensen… “Soils in the Arctic store more carbon than all vegetation on Earth. These soils are vulnerable to disturbances, such as cultivation for forestry or agriculture, but also the penetration of tree roots. The semi-continuous daylight during the spring and early summer, when snow is still on the ground, also makes the energy balance in this region extremely sensitive to surface darkening, since green and brown trees will soak up more heat from the sun than white snow.”

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EU faces potential softwood shortage amid hardwood surplus, study reveals

Science Direct in Lesprom Network
November 6, 2024
Category: Forestry
Region: International

A recent in-depth study, “Preliminary Evidence of Softwood Shortage and Hardwood Availability in EU Regions,” has shed light on significant supply imbalances within Europe’s forest-based bioeconomy. Researchers from Wageningen University, the European Commission’s Joint Research Centre, and other institutions analyzed data from the European Forest Industry Database (EUFID), revealing critical mismatches between wood resources and processing capacities across European countries. The study findings suggest that while Europe’s forestry infrastructure is vast, it may not be fully aligned with current and future wood demands. EUFID data points to substantial processing capacities across Europe, with pulp and paper facilities holding a capacity of 427 million m3, bioenergy plants at 102 million m3, and sawmills at 153 million m3. However, regional assessments in Germany, Norway, and the Czech Republic indicate looming shortfalls in softwood availability, crucial for the sawmill and bioenergy industries. 

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Carbon, Climate & Bioenergy

COP29 countries endorse global carbon market framework

By Virginia Furness and Kate Abnett
Reuters in the Globe and Mail
November 11, 2024
Category: Carbon, Climate & Bioenergy
Region: Canada, International

BAKU, Azerbaijan — Countries at the two-week COP29 climate summit gave the go-ahead on Monday to carbon credit quality standards which are critical to launching a UN-backed global carbon market that would fund projects that reduce greenhouse-gas emissions. The green light was an early deal on day one of the UN conference. Governments are also meant to hammer out a climate finance agreement, although expectations have been muted by Donald Trump’s U.S. election win. …However, Monday’s deal could allow a UN-backed global carbon market, which has been years in the making, to start up as soon as next year, one negotiator said. …The market could be one route for U.S. companies to keep participating in global efforts to address climate change, even if Mr. Trump were to quit the Paris accord. If that happened, U.S. firms could still buy credits from the UN-backed market to meet their voluntary climate targets.

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Washington voters uphold landmark climate law against challenge from conservatives

The Associated Press
November 6, 2024
Category: Carbon, Climate & Bioenergy
Region: United States, US West

OLYMPIA, Washington — Voters in Washington state upheld a groundbreaking law that is forcing companies to cut carbon emissions while raising billions of dollars for programs that include habitat restoration and preparing for climate change. Just two years after it was passed, the Climate Commitment Act, one of the most progressive climate policies ever passed by state lawmakers, faced a repeal effort from conservatives. They blamed it for ramping up energy and gas costs in Washington, which has long had some of the highest gas prices in the nation. …The law, a signature accomplishment of outgoing Democratic Gov. Jay Inslee, requires major polluters to pay for the right to do so by buying “allowances.” …The law aims to slash carbon emissions to almost half of 1990 levels by the year 2030. …Washington was the second state to launch this type of program, after California, with stringent annual targets. 

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Campaigners react to COP29 adoption of carbon credit rules

Euronews
November 12, 2024
Category: Carbon, Climate & Bioenergy
Region: International

Carbon markets are one step closer to being part of global climate plans after a speedy COP decision. …Last night, this version of Article 6 was quickly adopted by countries in what COP29 lead negotiator Yalchin Rafiyev called an early “breakthrough” for the summit. …But the gavelling through of Article 6 was criticised by climate justice groups, who said carbon markets allow major polluters to keep emitting at the expense of people and the planet. “It sends a bad signal to open COP29 by legitimising carbon markets as a solution to climate change,” says Ilan Zugman, Latin America and Caribbean director of global climate campaign groups 350.org. “They are not – they will increase inequalities, infringe on human rights, and hinder real climate action.” Here’s a look at Article 6 and the carbon credits system it aims to implement – and why it’s so controversial. 

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Cop29: what are carbon credits and why are they so controversial?

By Patrick Greenfield
The Guardian UK
November 10, 2024
Category: Carbon, Climate & Bioenergy
Region: International

For the next two weeks, countries will gather on the shores of the Caspian Sea in Baku, Azerbaijan, to discuss how to increase finance for climate crisis adaptation and mitigation. A global agreement on carbon markets will be high on the agenda as countries try to find ways of generating the trillions they need to decarbonise in order to limit heating to below 2C above preindustrial levels. …Carbon markets facilitate the trading of carbon credits. Each credit is equal to a tonne of carbon dioxide that has been reduced or removed from the atmosphere. They come from a wide range of sources: tree-planting schemes, forest protection and renewable energy projects are all common. …Where do they feature in the Paris Agreement? …Why are they so controversial? ….What are the risks if it goes badly?

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UN climate conference — just an excuse to shake West down for cash

By Bjorn Lomborg, Copenhagen Consensus
The New York Post
November 11, 2024
Category: Carbon, Climate & Bioenergy
Region: International

The UN climate summit in Azerbaijan kicked off Monday with many key leaders not even showing up. With low expectations set before it even began, the summit will see speeches on the need for a vast flow of money from rich countries to poorer ones. …The main problem is that wealthy countries — responsible for most emissions leading to climate change— want to cut emissions while poorer countries mainly want to eradicate poverty through growth. To get poorer countries to act against their own interest, the West started offering cash two decades ago. …The rich world didn’t deliver… and now developing countries now want more money. …Cleverly, campaigners and developing countries have rebranded the reason for these transfers by blaming weather damage costs. …Factually, this is an ill-considered claim because weather damages from hurricanes, floods, droughts, and other weather calamities have declined as a percentage of global GDP since 1990, both for rich and poor countries.

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Health & Safety

Alberta scaffolding company fined in Peace River Pulp Mill death

By Wallis Snowdon
CBC News
November 7, 2024
Category: Health & Safety
Region: Canada, Canada West

ALBERTA — A scaffolding company has been ordered to pay $350,000 in workplace safety penalties after a worker died in a fall at Mercer’s Peace River Pulp mill in Peace River, Alberta. According to officials with Alberta Occupational Health and Safety, West Coast Scaffolding has been convicted for failing to protect the safety of its employee. The company was sentenced Monday in the St. Albert Court of Justice. The investigation began following a man’s death on June 11, 2022, in Peace River. …The company was handed a creative sentence, which means penalties will be directed to community organizations or projects that promote workplace health and safety. In this case, the fines paid by West Coast Scaffolding will be provided to Athabasca County and the Caslan Volunteer Fire Department to support training and the purchase of new rescue equipment. Eight other workplace safety charges against the company were withdrawn.

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