Daily News for April 27, 2021

Today’s Takeaway

Lumber shipments unchanged in 2020: Canada’s Top 10 producers

April 27, 2021
Category: Today's Takeaway

Softwood lumber shipments from Canada’s Top 10 producers were static in 2020, as total Canadian shipments dropped 5.2 per cent. In related news: Europeans capture more US market share; how US producers can up their output; lumber imports fall 20% in China; and consolidation is gathering pace in the UK timber sector. Meanwhile, companies in the news include: PotlatchDeltic (strong Q1 results); Paper Excellence (updates for Mackenzie, BC and Boat Harbour, Nova Scotia); NewLife Forest (sawmill opening in  Arizona); and ND Paper (expansion in Maine).

In Forestry news: a new report says habitat protection is key to BC’s threatened Caribou herds; post-fire logging is blamed for the decline of US spotted owls; ENGO’s challenge proposed logging in Yellowstone National Park; and two retired forestry professors call for protection of older forests in the western Cascades.

Finally, lignin from forests—the secret ingredient for greener roads?

Kelly McCloskey, Tree Frog Editor

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Business & Politics

Europeans capturing more US lumber market share while Canada is stuck in the penalty box

By Tony Kryzanowski
The Logging and Sawmill Journal
April 26, 2021
Category: Business & Politics
Region: Canada, United States

With a new administration in the White House, it’s time for negotiators to start discussing some real facts and how—because of these facts—there is no reason for any tariffs on Canadian softwood lumber. …According to Wood Resources International, the lumber supply from Canada to the U.S. has been eroding for years. …What should be upsetting to Canadian producers is that while we are being unfairly penalized with tariffs, European producers are capturing more market share. …“Europe’s share of the total imports reached a record high of 13 per cent.” So in other words, Europe is now shipping more than double its average volume to the U.S. while we are being penalized for shipping substantially less. …It is obvious that the current volume of shipments from Canada represents no threat to American producers and removal of any tariffs on softwood lumber will actually help the American middle class by reducing the cost of purchasing a home.

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Canada’s Top 10 Softwood Lumber Producers

By Mark Smith and Chair Gimenez, FEA
Logging and Sawmilling Journal
April 26, 2021
Category: Business & Politics
Region: Canada

In 2019, total North American shipments were down for the first time in a decade, declining by over 2.6 billion board feet from 2018. This trend has been reversed for 2020 over 2019, with North American shipments increasing by just under 0.5 billion board feet (to 59.61 billion board feet). …The Canadian Top 10 lumber producers saw shipments remain static in 2020 at 13.866 billion board feet compared to the almost identical 13.862 billion board feet in 2019. However, the Top 10’s share of total Canadian shipments increased to 61.0 per cent in 2020 versus 57.9 per cent in 2019 as total Canadian shipments dropped by 5.2 per cent (from 23.956 billion board feet in 2019 to 22.717 billion board feet in 2020). …The top 10 Canadian firms changed slightly from 2019, with RYAM Lumber (Rayonier) coming in at #10 (#11 in 2019) at the expense of Arbec (now at #11). The top seven Canadian producers in 2019—West Fraser, Canfor, Resolute, Tolko, J.D. Irving, EACOM and Weyerhaeuser—kept the same rankings as in 2019.

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‘For me, it’s my life’: Mackenzie families struggle with pulp mill closure

By Caden Fanshaw
CKPG Today
April 26, 2021
Category: Business & Politics
Region: Canada, Canada West

MACKENZIE – As Paper Excellence stops their Mackenzie operations, and over 150 jobs are lost, the number of families who are impacted stretches across the entire community. Those who lost their jobs are now being faced with tough decisions on what to do next, and how to get to the next stage of their lives. …Berlinski worked at the mill for over 25 years, now headed back to school to figure out a future, as his future retirement hopes are now dashed, at least for now. Many are heartbroken because of the closure, Scott Campbell has gone through the same thing in Port Alice, BC but said this felt different. …Second-class power engineer Rimi Shaqiri said this closure is not a short-term effect, instead, more of a long-term to his willingness to work in the industry.

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Northern Pulp provides an update on Companies’ Creditors Arrangement Act process

Paper Excellence Canada
April 22, 2021
Category: Business & Politics
Region: Canada, Canada East

Abercrombie, NS – Northern Pulp Nova Scotia… announced that the British Columbia Supreme Court has approved the requests made by Northern Pulp to, among other things, extend the protection under the Companies’ Creditors Arrangement Act to October 31, 2021. The Court has also approved the amendment of the interim financing milestones… and approved an additional draw of $6.0 million to meet obligations during the extended timeframe. Throughout the Stay Extension, Northern Pulp will continue to manage and maintain the mill and advance plans to transform its operations. “[This will] provide us with the opportunity to advance our transformation plans, which include everything from community engagement to forestry practices to addressing air and water emissions, engage with stakeholders and First Nations for their input and feedback on our proposed transformation, and initiate work on a new environmental assessment for an advanced ETF,” said Graham Kissack, Vice President, EH&S and Corporate Communications, Paper Excellence.

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Record Lumber Prices Present Opportunity, and Risk, for Domestic Industry

By Nick Smith
Forests2Market Blog
April 27, 2021
Category: Business & Politics
Region: United States

With lumber prices reaching record highs, the time is now to make a case for our domestic forest products industry. …There are several ways the Biden Administration, the U.S. Congress, and state governments can help our producers expand their capacity to manufacture more lumber here at home. …The Administration and the U.S. Department of Agriculture can start by ensuring full implementation and funding for the Logger Relief Package that was approved in previous Covid-relief legislation. …Policymakers should also resist adding more regulation, red tape, and taxes, as well as measures that further increase fuel prices.  …An uncertain timber supply is the primary obstacle to expanding lumber production, especially in the Pacific Northwest. …Federal lands must be part of the solution. …Finally, the red-hot lumber market should be an opportunity to reconnect Americans to the resource.

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As new Bellemont sawmill opens Friday, leaders optimistic for forest restoration future

By Adrian Skabelund
The Arizona Daily Sun
April 24, 2021
Category: Business & Politics
Region: United States, US West

“By its very nature, the trees that we extract are not the best trees in the forest,” NewLife Forest Restoration CEO Ted Dergousoff said. …The new Bellemont sawmill that opened on Friday… [is] finding a way to make money out of small, low-quality trees. “This is the most exciting project that I’ve been involved with in my 40 years in the industry,” Dergousoff told the group of gathered leaders just before the ribbon cutting. …Once fully staffed, the facility is expected to employ about 200 people and will house the sawmill, planer mill, kilns for drying the wood and engineered wood product lines, with space allowing for storage and movement of high-value products. With all that, company officials say they will produce an estimated 120 million board feet per year of lumber.

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New Recycled Pulping Operation launches at Old Town Division

ND Paper
April 22, 2021
Category: Business & Politics
Region: United States, US East

OLD TOWN – Maine – ND Paper is excited to announce the launch of a new recycled pulping operation at its Old Town Division. This innovative new production line will produce approximately 200 metric tons per day of unbleached recycled pulp. Using patent-pending, proprietary technology, the line will consume regionally-sourced recovered paper, primarily old corrugated containers, as its primary feedstock; this incremental demand for scrap paper is anticipated to improve local recycling and ultimately reduce disposal alternatives like landfilling. In addition, while traditional pulping operations typically require considerable use of water, this new line is novel as it requires very little consumption. At full operation, the recycled pulping operation will support approximately 20 new jobs in the state of Maine.

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Industry consolidation here to stay

Timber Trades Journal
April 26, 2021
Category: Business & Politics
Region: International

Consolidation in the UK timber sector has been gathering pace in recent years and as we officially enter spring, it seems to have gone up a notch. Four acquisitions in just two days were announced, representing major moves in the UK sawmilling and timber and builders merchant sectors. James Jones & Sons’ acquisition of GT Timber, the holding company owning Taylormade Timber Products and Kerr Timber Products, means its annual sawn timber capacity increases to a stellar 800,000m3. …Gaining market share, security of supply and strength in the face of economic challenges are important drivers in worldwide timber industry consolidation. West Fraser’s multi-billion dollar acquisition of global OSB giant Norbord is perhaps the biggest recent example. As well as consolidation, the hot topic of treated timber continues to stay in the limelight with an announcement by the Association of Fencing Industries (AFI).

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Finance & Economics

Housing is keeping Canada’s economy going and that’s bad news when the bubble pops

By David Rosenberg
The Financial Post
April 26, 2021
Category: Finance & Economics
Region: Canada

There is no economic growth in the US barring the government’s relentless support. If not for the massive 50 per cent surge in government expenditure in 2020, nominal GDP would have collapsed 16.2 per cent. …In Canada… The local economy is on life support, with only ongoing government stimulus and the red-hot housing market as sources of any vitality. First, strip out government handouts in 2020 and the economy would have sunk 15.3 per cent to its lowest level of activity in seven years. At the same time, the Canadian housing market has gone simply insane. …Total residential construction has surged 22.5 per cent in the past year and that has taken the housing share of GDP to a record high of 9.3 per cent — double the historical norm. …In the manufacturing area, wood product sales have ballooned 69.5 per cent year over year. The rest of the sector is -4.1 per cent. …That’s the Canadian turnaround story.

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PotlatchDeltic Corporation reports first quarter 2021 results

PotlatchDeltic Corporation
April 26, 2021
Category: Finance & Economics
Region: United States, US West

SPOKANE, Wash.–PotlatchDeltic Corporation today reported net income of $131.1 million, or $1.94 per diluted share, on revenues of $354.2 million for the quarter ended March 31, 2021. Net loss was $16.8 million, or ($0.25) per diluted share, on revenues of $208.9 million for the quarter ended March 31, 2020. Excluding an after-tax pension settlement charge, adjusted net income was $15.0 million, or $0.22 per diluted share for the first quarter of 2020. “2021 is off to an extraordinary start as our Wood Products and Timberlands businesses leveraged historic lumber prices to drive our third consecutive quarter of record financial performance,” said Eric Cremers, president and chief executive officer. 

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Lumber prices go through the roof as housing demand soars

By David Nicklaus
St. Louis Post-Dispatch
April 26, 2021
Category: Finance & Economics
Region: United States, US East

Prices of new houses are rising, and a big part of the reason is literally structural. Lumber has quadrupled in price in the past year, forcing builders to repeatedly reprice their houses to keep up with the cost of building materials. John Eilermann Jr., chief executive of McBride Homes, estimates that lumber added $26,000 to the price of a typical home built by his company last year. …He said McBride has been raising house prices once or twice a month, much more frequently than usual. Buyers haven’t balked so far. Strong demand for both houses and home remodeling is helping drive lumber prices up, but there are supply-side factors too. Imports from Canada are down because of U.S. tariffs and a beetle infestation in British Columbia. Western wildfires have hurt production too. Much of the supply shortfall, though, can be blamed on COVID-19.

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China’s lumber imports fell 20% in January-March 2021

By Woodstat
Lesprom Network
April 27, 2021
Category: Finance & Economics
Region: International

China imported approximately 4.13 million m3 of softwood lumber during January-March 2021. This means a reduction with 20% compared to the same period during 2020, as Woodstat reported. At the same time residential buildings projects with a total floor space of 362 million m2 were started which means an increase by impressive 30%. “A rapid increase in housing starts and a lower import of softwood lumber have reduced the stocks of lumber to a very low level,” says Jenny Wessung, CEO at Woodstat. She continues: “With a high demand in Europe and U.S. we’ll no doubt see a strong market for lumber.” [END]

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Wood, Paper & Green Building

Lignin from Canadian forests: the secret ingredient for greener roads

FPInnovations Blog
April 20, 2021
Category: Wood, Paper & Green Building
Region: Canada

In recent years, environmental considerations related to the use of petroleum-based products have led many around the world to evaluate greener options for reducing the carbon footprint of asphalted roads. …Asphalt is manufactured by binding together aggregate with bitumen, a petroleum product. However, lignin, a natural by-product of the pulp making process, is being hailed as a possible replacement for some of the bitumen used. …To confirm the feasibility of using lignin-modified asphalt pavement under Canadian conditions and to address the process issues, FPInnovations chose to work alongside players from the entire asphalt value chain, from governments and universities to process specialists and lignin and asphalt producers. Early results have been promising, according to Allan Bradley, Lead Researcher in FPInnovations’ Transportation and Infrastructure group. …An accelerated pavement testing program will be conducted in a high-tech full-scale simulator at Université Laval’s i3C Chair.

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Interest in Fire-Retardant-Treated Wood Heats Up

By Stephanie O
The Merchant Magazine
April 26, 2021
Category: Wood, Paper & Green Building
Region: United States, US West

The record wildfires of 2020 have sparked significant interest in fire-retardant-treated wood products. …The increased interest in the products also underscored some common misperceptions about fire-retardant-treated wood. One common question: “Can preservative-treated wood also be fire-retardant treated?” While there are fire retardants rated for exterior use, it is not possible to treat wood with both preservatives and fire retardants. …Another common misperception is that fire-retardant treating makes the wood fireproof. The reality is that fire retardants are intended to slow the spread of fire so that occupants of the structure can safely exit and first responders have more time to try to save the structure. …The complexities of the wildfire issue defy simple solutions. Protecting structures from the ravages of wildfire will take a multi-faceted approach, which will likely include fire-retardant-treated wood.

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Forestry

Without Further Habitat Protections Caribou Likely To Disappear

By Wildsight
The Boundary Sentinel
April 26, 2021
Category: Forestry
Region: Canada, Canada West

A new scientific paper… is highlighting the importance of addressing the ultimate cause of caribou declines: habitat loss. According to the authors: “Our findings support the idea that short-term recovery actions such as predator reductions and translocations will likely just delay caribou extinction in the absence of well-considered habitat management.” The researchers point to logging and road building as the major source of habitat loss for mountain caribou which occupy Southern and Central BC, while wildfires play a primary role for Boreal and Northern Caribou. …Over a 12 year period, caribou herds across BC and Alberta lost twice as much habitat as they gained. …“Given the magnitude of ongoing habitat change, unless the cumulative impacts of land-uses are effectively addressed through planning and management actions, we will fail to achieve self-sustaining woodland caribou populations across much of North America.”

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Trans Mountain ordered to delay pipeline construction in Burnaby bird nesting area

By Hina Alam
The Vancouver Sun
April 26, 2021
Category: Forestry
Region: Canada, Canada West

Environment and Climate Change Canada has ordered a halt to construction of the Trans Mountain pipeline through a forest in Burnaby, until the end of bird nesting season. The department said the order was issued following an enforcement officer’s visit to the site prompted by complaints that nests of the Anna’s hummingbird and other migratory birds were being damaged. “Given that it is nesting season, migratory birds are particularly vulnerable at this time,” it said in an emailed statement. “Cutting vegetation and trees or carrying out other disruptive activities such as bulldozing or using chainsaws and heavy machinery in the vicinity of active nests will likely result in disturbance or destruction of those nests.” It said construction is paused until Aug. 20. …The company didn’t respond to questions about possible added costs or how the order might set back the timing of the pipeline’s completion.

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Forest Service releases assessment for Lake Five logging project

By Chris Peterson
Daily Inter Lake
April 27, 2021
Category: Forestry
Region: United States, US West

The Flathead National Forest last week released an environmental assessment for a logging and thinning project in the woods stretching from Lion Lake to West Glacier. Called the Lake Five project, the project’s area is about 11,855 acres, but about 4,850 acres are private. The logging and thinning would only occur on the remaining national forest lands. There are about 305 cutting units proposed between the communities of Coram and West Glacier. None of them are overly large, however, and many abut private lands. Most of the timber in the project area is lodgepole pine that’s 5.5 to 9.9 inches in diameter. …About 556 acres would be replanted with Western larch or rust-resistant white pine, while 726 acres would be allowed to naturally regenerate. There is no old growth in the area. …Comments will be accepted until May 20.

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Indigenous peoples have always known the Tongass is our lifeblood. New research confirms it.

By Joel Jackson, tribal president of the Organized Village of Kake
Anchorage Daily News
April 26, 2021
Category: Forestry
Region: United States, US West

Joel Jackson

As Tribal President of the Organized Village of Kake, I can tell you the Tongass National Forest has always been of paramount importance to our Keex Kwan people’s way of life. Western science shows that protecting our carbon-dense forest is key to helping the planet heal from climate change. …Dominick DellaSala, Chief Scientist at Wild Heritage, released new data showing the alarming climate impact of logging in the Tongass — and confirmed the Tongass forest’s crucial role in helping the United States achieve its goals for reducing carbon in the earth’s atmosphere. Tribes are in favor of protecting our nation’s largest carbon sink, the Tongass, not just because the planet’s climate depends on it, but because as Indigenous peoples of Alaska, our lives have forever been interwoven with this land that sustains us. …The Biden administration has an opportunity to make things right on the Tongass

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Post-fire logging operations blamed for declining spotted owls, report says

By Isabella Vanderheiden
Eureka Times-Standard
April 26, 2021
Category: Forestry
Region: United States, US West

For years, researchers have assumed high-severity forest fires to be responsible for declining northern spotted owl populations but a new analysis from the John Muir Project and Wild Nature Institue has shifted the blame to post-fire logging practices. “It turns out that the decline in spotted owl populations that sometimes occurs after forest fires is being driven by destructive post-fire logging practices, not by the fires themselves,” said John Muir Project research ecologist Dr. Chad Hanson in a prepared statement. According to the report, high-severity fires transform many western conifer forests into “snag forest habitats” which spotted owls use to hunt for small mammal prey. Such habitats are also targeted for post-fire logging projects. The assumption that spotted owls would be impacted by forest fires is logical because spotted owls tend to prefer dark, dense old-growth forests, said Environmental Protection Information Center executive director Tom Wheeler.

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Protect older natural forests in the western Cascades

By Jerry Franklin and Norm Johnson, retired forestry professors
The Register-Guard
April 27, 2021
Category: Forestry
Region: United States, US West

Jerry Franklin

Almost 20 years ago, the U.S. Forest Service essentially stopped logging older primeval forests on national forests in Western Oregon and Washington. Its harvests were halted by protests, legal challenges, species impacts and broadening social realizations of the ecological and wildlife benefits of such forests. The agency then switched to thinning plantations it had created after earlier clear-cutting of mature and old-growth forests. Once again, however, the Forest Service plans extensive logging of older natural forests. This is illustrated by the Forest Service’ proposed Flat Country Project … where almost 2,000 acres of mature forests would be logged. These forests were designated as potentially available for harvest under the Northwest Forest Plan developed in 1994 in response to the northern spotted owl crisis. However, primeval older forests are now grossly underrepresented in Oregon’s forested landscapes, and they provide important ecological services and have high social value. They should be permanently protected.

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4 environmental groups challenge logging project near Yellowstone National Park

Helena Independent Record
April 26, 2021
Category: Forestry
Region: United States, US West

A proposed logging project on more than 16,400 acres west of Yellowstone National Park is being contested by four conservation groups. The Alliance for the Wild Rockies, Center for Biological Diversity, WildEarth Guardians and Native Ecosystems Council challenged the Custer Gallatin National Forest’s plan to conduct its South Plateau project over the next 15 years. The Forest Service has touted the logging as a way to prevent the spread of pine beetle infestations and to limit the damage of wildland fire by thinning trees. The work would require the building of more than 56 miles of road that would be restored after use. A final environmental assessment was released in February after the plan was modified to increase grizzly bear secure habitat by about 1,000 acres by closing three administrative roads.

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Clemson receives more than $5 million for college of agriculture, forestry and life sciences

By Alex Cooper
The Greenville Journal
April 26, 2021
Category: Forestry
Region: United States, US East

Clemson University revealed gifts totaling more than $5 million dollars for the college of agriculture, forestry and life sciences during a spring quarterly board of trustees meeting on Friday, April 23. Amy and Micky Scott have given an additional $2.5 million on top of previous gifts worth more than $1 million. The latest gift will fund need-based scholarships for students in the Forestry Summer Camp, scholarships for recruiting students to the department and for graduate student support. It’s the first gift of its type to go to the college of agriculture, forestry and life sciences. Micky Scott graduated from Clemson with a degree in forest management in 1975. He is the president of Collum’s Lumber Mill in Allendale, South Carolina. …The university also announced $2.8 million in gifts to launch a new urban entomology program. 

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