Daily News for January 05, 2021

Today’s Takeaway

Lumber prices down after strong second half of 2020

January 5, 2021
Category: Today's Takeaway

Lumber is currently showing bearish momentum (i.e., steadily falling) after strong growth in the second half of 2020. In related news: US construction spending was up 3.8% in 2020, residential spending is on the rise and single-family homes are not as large as they used to be. Companies making news include: Weston Forest (acquired); Katerra (saved); Pinnacle/Tolko (begins pellet production); Paper Excellence (Port Alberni machine fire); UPM/Domtar (Plymouth agreement); and Ponderay Newsprint (the end is near).

In other news: biochar use is proposed to save Minnesota’s tamaracks; California classifies treated wood waste as hazardous; and Pittsburg is one of three cities to receive an urban forest grant; Meanwhile: BC’s forestry watchdog calls for old-growth review and Brazil’s environmental crime investigators fail to get the job done.

Finally, the species of wood used in Pharaonic coffins speaks to the economics of the day.

Kelly McCloskey, Tree Frog Editor

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Business & Politics

Softbank bails out Katerra and takes majority stake

By Jonathan Hilburg
The Architect’s Newspaper
January 4, 2021
Category: Business & Politics
Region: Canada, United States

Modular prefabrication company and timber innovators Katerra has reportedly been saved from bankruptcy by a $200 million cash infusion from Japanese investment giant Softbank, according to the Wall Street Journal. In addition, Softbank is taking another 5 percent stake in the company, making it Katerra’s majority shareholder. …Buoyed by massive hype and investments from venture capitalist backers, including Softbank’s Vision Fund, the company went on an expansion spree, snapping up Michael Green Architecture and Lord Aeck Sargent in 2018. That same year Katerra merged with Indian technology company… and in 2019, they opened a cross-laminated timber factory in Spokane Valley, Washington. However, things haven’t been all rosy. …Aside from selling off incomplete projects, the design-build startup saw turnover at the top as CEO and co-founder Michael Marks left and was replaced by Paal Kibsgaard in May.

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Weston Forest Has Been Acquired by the Watermill Group

Businesswire
January 4, 2021
Category: Business & Politics
Region: Canada, United States

MISSISSAUGA, Ontario & LEXINGTON, Massachusetts — Weston Forest, a distributor and remanufacturer of softwood & hardwood lumber and specialty panel products, today announced it has been acquired by the Watermill Group, a strategy-driven private investment firm. “This is a historic event for everyone at Weston Forest,” said Steve Rhone, President, Weston Forest. Weston Forest operates several facilities across eastern Canada and the United States, providing products and services that are essential to commercial and residential construction as well as the production and shipment of industrial goods. …For the investment, Watermill has included as a co-invest partner Walter Capital Partners, a private investment firm based in Canada. 

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Paper machine catches fire at Paper Excellence’s Port Alberni mill

By Susie Quinn
The Alberni Valley News
January 4, 2021
Category: Business & Politics
Region: Canada, Canada West

No one was hurt after a fire erupted Monday morning, Jan. 4, 2021, in one of the paper machines at Paper Excellence Canada in Port Alberni. “We had a paper fire on the No. 4 paper machine in the dryer section,” Paper Excellence Canada Alberni division general manager Marc Bodin confirmed… no one was hurt in the incident. …“When a fire happens the fans are immediately shut off to limit oxygen getting to the flames. That creates a lot more smoke and cuts down the flames, he added. …Bodin said preliminary checks indicate damage was not extensive. “It looks like there was minimal damage to the machine itself.” …Bodin said he doesn’t anticipate Monday’s fire affecting the Alberni plant’s overall production. “We’re not expecting any significant down time or loss of production as a result,” he said.

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Wood pellet production begins at new Pinnacle/Tolko mill

By Rich Christianson
The Woodworking Network
January 4, 2021
Category: Business & Politics
Region: Canada, Canada West

VANCOUVER, BC — Pinnacle Renewable Energy’s newest mill in High Level, Alberta, recently began manufacturing wood pellets. The manufacturing facility is owned 50-50 with Tolko Industries though a limited partnership. Raw material for wood pellet production is supplied from Tolko’s sawmill also located in High Level. According to Pinnacle, the mill has a projected run-rate capacity of 200,000 metric tons per year. Duncan Davies, CEO of Pinnacle, said, “The commissioning of this mill along with our project at Demopolis, Ala., which is scheduled for completion in Q2 2021, will increase Pinnacle’s overall production capacity by almost 25 percent to 2.8 million metric tons per annum.” …Pinnacle, the second largest producer of industrial wood pellets in the world, operates nine production facilities in Western Canada and one in Alabama.

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Laid-off employees of Ponderay Newsprint are running out of time and money

By Fred Willenbrock
The Spokesman-Review
January 4, 2021
Category: Business & Politics
Region: United States, US West

USK, Washington – After being told to go home and not return to their jobs at the Ponderay Newsprint Company mill near Usk, north of Newport, in June, the 148 employees, from trainee to company president, have been taking different steps to safeguard their futures. While those involved with the bankruptcy settlement have focused on the value of the massive newsprint-making machinery… the human toll of the closure in a community with few industries has taken a back seat. With unemployment benefits ending the week of Dec. 13, those who haven’t found jobs or retired are asking what’s next. Of the 148 former PNC employees, approximately 73 were in operations, 25 maintenance, 30 management and 20 electrical/instrument technicians.

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International Paper Reaches Agreement to Sell Its Corrugated Packaging Business in Turkey

International Paper
January 5, 2021
Category: Business & Politics
Region: United States, US East

MEMPHIS, Tenn. — International Paper has entered into an agreement to sell its 90.38% ownership interest in Olmuksan International Paper to Mondi Group for approximately €66 million. The Olmuksan business includes corrugated packaging facilities in Turkey with an approximate annual revenue of TRY1,093 million (€150 million). The transaction is expected to close in the first half of 2021, subject to certain closing conditions and regulatory approvals. This action is in line with International Paper’s strategy to serve markets from an advantaged position. Corrugated packaging remains a strategic business for International Paper in EMEA.

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UPM to Buy Total Annual Production of Lignin from Domtar’s Plymouth, North Carolina Mill

Paper Age
January 4, 2021
Category: Business & Politics
Region: United States, US East

UPM and the US-based pulp and paper producer Domtar have signed an agreement for UPM to acquire the total annual kraft lignin production of Domtar’s Plymouth Mill in North Carolina as of January 2021. This step enables UPM to expand its role in the growing lignin business and different application segments. Following the agreement, UPM will increase its supply of kraft lignin by more than 20.000 metric tonnes annually. …”It enables us to expand our lignin business in the growing biochemicals market before the start-up of our Biorefinery in Leuna, Germany,” says Juuso Konttinen, VP, UPM Biochemicals. …Kraft lignin products such as UPM BioPiva are used as a renewable alternative to fossil-based products in a growing range of applications, such as lignin-based phenolic resins. 

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Rules of Origin Guidance: Why trade deal is good but not as good as a customs union

By Nick Boulton, head of technical and trade
The Timber Trade Federation
January 5, 2021
Category: Business & Politics
Region: International

Nick Boulton

With the signing of the UK-EU Trade and Cooperation Agreement, the vast majority of traders moving goods between the UK and EU will avoid paying tariffs on that trade. However, this trade agreement only applies to goods that originate in the UK or EU. Unlike the customs union where “third country” goods imported into the UK could move freely and duty-free from here to other EU member states. Under the new trade agreement such “third country” goods may now need to pay further duty when crossing the border into the EU or visa versa. …Fortunately, most wood products are traded duty-free on a global basis so while it will be necessary to list country of origin on customs entries, there is no need to claim preferential duty rates and undertake the additional administration necessary to comply with the rules of origin requirements when importing or exporting such goods between the UK and the EU.

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Finance & Economics

Lumber prices have increased worldwide in the second half of 2020 with US prices almost doubling

By Wood Resources International LLC
Cision Newswire
January 5, 2021
Category: Finance & Economics
Region: Canada, United States, International

Europe: Lumber trade fell slightly. During the first eight months, shipments from the major exporting countries were down 1.2% – the first y-o-y decline in eight years. …North America: The US lumber market was red hot in the 3Q/20, with prices surging to levels never seen before. Southern pine prices increased by 160% from the year’s low in April, to September. In Western US, Douglas-fir lumber prices almost doubled during the same period. …United Kingdom: The UK imported 6.7 million m3, which was a y-o-y decline for the second consecutive year. …China: Lumber imports to China slowed in the 3Q/20, with total volumes falling 2% from the previous quarter and 4% from the 3Q/19. Total imports for the first nine months were 10% below the same period in 2019. …Japan: Lumber imports to Japan fell by almost 10% during the first nine months of 2020 compared to the same period in 2019. 

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Lumber Bearish Momentum: 2.29% Down Since The Last Session

Via News
January 5, 2021
Category: Finance & Economics
Region: Canada, United States

Lumber is currently on bearish momentum. At 23:10 EST on Monday, 4 January, Lumber is at $700.50 and 2.29% down since the last session’s close. …Lumber Range – Lumber is 0.937% up from its last session low of $694.00 and 6.463% down from its last session high of $748.90. …Lumber Volatility – Lumber’s last day, last week, and last month’s average volatility was a positive 0.42%, a negative 6.41%, and a negative 0.01%, respectively.

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US Construction Spending up 3.8% in 2020

US Census Bureau
January 4, 2021
Category: Finance & Economics
Region: United States

The U.S. Census Bureau announced the following value put in place construction statistics. …Construction spending during November 2020 was estimated at a seasonally adjusted annual rate of $1,459.4 billion, 0.9 percent (±0.8 percent) above the revised October estimate of $1,446.9 billion. The November figure is 3.8 percent (±1.3 percent) above the November 2019 estimate of $1,405.5 billion. During the first eleven months of this year, construction spending amounted to $1,314.1 billion, 4.4 percent (±1.0 percent) above the $1,258.8 billion for the same period in 2019.

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New Single-Family Homes Sold Not as Large as They Used to Be Housing

By Philip Thompson
US Census Bureau
December 21, 2020
Category: Finance & Economics
Region: United States

The average square footage of new homes sold in the US increased from 2,457 in 2010 to 2,724 in 2015 but dropped in 2019 to 2,518, according to the U.S. Census Bureau’s Characteristics of New Housing. …Despite the decline in average square footage, the share of homes with four bedrooms or more that were sold increased from 41% in 2010 to 49% in 2019. …The average sales price of new single-family homes sold in 2019 was $383,900, up from $272,900 in 2010. Of all the 903,000 new single-family homes completed in 2019… 814,000 (90%) were framed in wood and 86,000 (10%) were framed using concrete; 296,000 (33%) had a patio and a porch, while 71,000 (8%) had no outdoor features. What new multifamily units look like… 251,000 (71%) were in buildings framed in wood and 33,000 (9%) were in steel-framed buildings.

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US Private Residential Spending Is on the Rise

By Na Zhao
NAHB – Eye on Housing
January 4, 2021
Category: Finance & Economics
Region: United States

NAHB analysis of Census Construction Spending data shows that total private residential construction spending rose 2.7% in November to a seasonally adjusted annual rate of $658.1 billion. Total private residential construction spending was 16.1% higher than a year ago. The monthly gains are largely attributed to the strong growth of spending on single-family and improvements. Single-family construction spending rose to a $341.5 billion annual pace in November, up by 5.1%. …Remodeling spending inched up by 0.2% in November. Meanwhile, multifamily construction spending stayed flat after reaching a record high in October, and was 15.8% higher since a year ago. …Private nonresidential construction spending decreased 0.8% to a seasonally adjusted annual rate of $453.8 billion. And it was 9.5% lower than a year ago. 

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Wood, Paper & Green Building

Careful selection of materials critical to midrise engineered wood buildings

By Don Proctor
The Journal of Commerce
January 4, 2021
Category: Wood, Paper & Green Building
Region: Canada, Canada West

The design and construction of midrise engineered wood buildings can be “compromised” without a careful selection of materials, connections and assemblies. “Whether it is the right product for nailing or shrinkage or excessive deflection…you don’t want performance surprises,” Andy Teasell, a senior engineer at Weyerhaeuser’s Trus Joist product line, told an audience recently at a webinar hosted by the Canadian Wood Council. Teasell said there are many complex facets to midrise engineered wood buildings that are not common in regulatory controls such as Part 9 of B.C.’s Building Code. “As successful as they (mass timber buildings) are, the stakes are high and they require more expertise” than conventional construction, he said. …He said his company provides a checklist for builders on the training and experience a midrise supplier requires.

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State of California classifying treated wood waste as hazardous material

The Willits News
January 4, 2021
Category: Wood, Paper & Green Building
Region: United States, US West

Due to expiring State waivers, pressure-treated wood, which is sometimes required by the California Building Code, will be classified by the State of California as hazardous material effective Jan. 1, 2021.  Residential customers will have a limited ability to dispose of treated wood waste with Mendo Recycle for a fee, but immediate solutions are practically not available for commercial customers. …the State will require that treated wood waste be categorized as hazardous material (HazMat) and the material can no longer be accepted by waste haulers or at transfer stations within Mendocino County. Supervisor Ted Williams stated, “…This is a problem that focuses impacts on rural counties, creating a new hurdle that is especially difficult for our construction industry. …the only practical recommendation is for commercially generated treated wood waste to be responsibly stored where it is generated so that it can be properly disposed as hazardous material when options become available.”

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New uses for dead ash, fir and tamarack trees could help restore Minnesota’s forests

By Greg Stanley
Phys.org
January 4, 2021
Category: Wood, Paper & Green Building
Region: United States, US East

…pest outbreaks have left Minnesota with quite a lot of dead trees …which, if left to rot, will become one large fire hazard. …researchers at the University of Minnesota Duluth have been racing to find novel ways to make the trees more desirable and valuable to … anyone who might be willing to come and remove them both before and after the bugs take them down. …One of the more promising uses of the dead wood is to heat it to extremely high temperatures to reduce it to a char. The charred remains, when done at the right temperatures in kilns with limited oxygen, are a powerful filter for chemicals and bacteria in wastewater and soil. …Matt Aro, researcher at the university’s Natural Resources Research Institute, has been thermally modifying tamarack wood, changing its chemical makeup by heating it in a low-oxygen environment.

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Wood Used in Pharaonic Coffins Cut from Egyptian Ficus, Lebanese Cedars

By Hazem Bader
Asharq Al-awsat
January 5, 2021
Category: Wood, Paper & Green Building
Region: International

King Tutankhamun

A new Italian study has identified the source of the wood used to make coffins in Ancient Egypt. …a research team from the Egyptian Museum in Florence analyzed two groups of coffins preserved in the museum in order to collect more information about the wood used in their construction, and possible origin. The two groups of coffins belong to burials during the XVIII Dynasty of the New Kingdom and the XXI Dynasty of the Third Intermediate Period. …The analysis confirms that the most frequently utilized timber for the ancient Egyptian wooden coffins was Ficus sycomorus L. (sycamore fig) that was widely available locally at the time of construction. Although the sycamore fig wood is light and easy to process, it is resistant especially when submerged in water. …In contrast, the precious softwood of Cedrus cf. libani (probably Lebanon cedar) largely appears in the coffins of the New Kingdom.

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Forestry

Forestry Watchdog Calls for Review of Old-Growth Logging Practices in BC’s North

By Amanda Follett Hosgood
The Tyee
January 5, 2021
Category: Forestry
Region: Canada, Canada West

Judy Thomas

BC’s forestry watchdog is calling on the government to review its approach to old-growth logging around Prince George, saying biodiversity in the region may be at risk. The B.C. Forest Practices Board report, released just before Christmas, is the result of a year-long investigation following an initially anonymous complaint by a government employee. The board identified several concerns with the way government manages old forests in the Prince George timber supply area, the largest in the province, including its definition of old growth and use of outdated industry standards, which were last revised before the mountain pine beetle outbreak. It called on the province to update its objectives for old growth in partnership with Indigenous communities. …The board has given the province until May 30 to respond. 

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New environmental group wants cumulative impact planning for Selkirk Mountains

By Bill Metcalfe
The Nelson Star
January 4, 2021
Category: Forestry
Region: Canada, Canada West

The newly formed group The Wild Connection doesn’t necessarily want to shut down the Zincton ski resort proposed for the Selkirk Mountains between New Denver and Kaslo. But before the province approves the project, the group wants the government to do land-use planning for a large portion of the Selkirk Mountains, and look at the cumulative impacts of all kinds of development there. Otherwise, they say, wildlife corridors and biodiversity are threatened. “The Zincton Village proposal is just a symptom of a larger problem,” says group spokesperson K.L. Kivi, “whereby the government is not making land-use decisions based on cumulative impacts of all the variety of [projects] that are happening in that area.”

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Pittsburgh’s dwindling urban forests get help

By Don Hopey
The Pittsburgh Post-Gazette
January 4, 2021
Category: Forestry
Region: Canada East, United States

Pittsburgh’s trees have long held the short end of the stick, but that may change soon with the city’s participation in an innovative national program aimed at increasing coverage of thinning urban forest canopies. The “Reforestation Hub” program by Cambium Carbon, in partnership with the Arbor Day Foundation… seeks to use wood from cut and storm-downed trees now discarded in landfills to produce products and generate revenue to maintain existing urban forested areas and buy and plant new trees. According to Mayor William Peduto, the city lost 6.2% of its tree canopy between 2010 and 2015, reducing leafy coverage of the urban landscape to approximately 36%. …Pittsburgh was selected by Cambium Carbon, along with Denver, Eugene, Ore., and New York City, from among 35 urban applicants to participate in the pilot reforestation program, which is funded by The Nature Conservancy and other foundation grants.

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Once-in-a-Decade Forest Plan Sets Sights On Wildfire, Disease And The Economy

By Nick Mott
Montana Public Radio
January 4, 2021
Category: Forestry
Region: United States, US West

MONTANA — Before leaving office, Gov. Bullock finalized a document that will guide forestry and logging projects in Montana for the next decade. …Sonya Germann, state forester with the Department of Natural Resources and Conservation, said the Montana Forest Action Plan is the framework that will guide how the patchwork of private and public landowners take on common concerns, like longer wildfire seasons, across the timbered landscape. She said in addition to bolstering wildfire resilience, the plan seeks to combat insects and disease in forests, and boost the state’s timber and mill economy. While it emphasizes work that will bridge land ownership lines, it doesn’t say exactly how much of the roughly 4 million acres will be logged. …The Montana Forest Action Plan is awaiting finalization from the United States Department of Agriculture , and projects could be under way by March. 

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Flathead National Forest reviews busy year

By Rob Chaney
The Missoulian
January 3, 2021
Category: Forestry
Region: United States, US West

MISSOULA, Montana — From installing a new supervisor to absorbing an avalanche of pandemic-driven visitor activity, the Flathead National Forest weathered a remarkable amount of change in 2020. …As lockdowns, business restrictions and stay-at-home orders made city life unrecognizable last year, many people sought refreshment in the woods. And a remarkable number of them came to the Flathead National Forest, which borders Glacier National Park, overlays. …On its industrial side, the Flathead Forest released a draft of the controversial Mid-Swan Landscape Restoration and Wildland Urban Interface Project in August. …Commercial logging on the Flathead produced 47.3 million board feet of timber on 3,679 acres, which sold for $5.7 million. Pre-commercial thinning took place on about 250 acres. …While many other parts of the country endured massive wildfires, the Flathead National Forest got through relatively unscathed.

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Clemson forest ecologist honored with career achievement award

By Steven Bradley
The Newsstand – Clemson University
January 4, 2021
Category: Forestry
Region: United States, US East

William Conner

William Conner, based at Clemson’s Baruch Institute of Coastal Ecology and Forest Science (BICEFS) in Georgetown, S.C., was recently honored with a special Society of Wetland Scientists (SWS) 40th Anniversary Award for his high level and sustained contributions to wetland research, practice, education, communication and support to the Society. …During his career, Conner has garnered over $4 million in research grants and contracts, authored or edited three books and 32 book chapters and had 93 referred journal papers and 80 other scientific papers and reports, as well as given 310 presentations as presenter or co-author. In 2010, Conner was awarded Clemson University’s highest agricultural honor, the Godley-Snell Award for Excellence in Agricultural Research, and he was selected as Fellow of the Clemson University Institute for Parks two years later. Conner also received the SWS President’s Service Award in 2013.

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Bolsonaro sent soldiers to the Amazon to curb deforestation. Here’s how the effort failed.

By Terrence McCoy
The Washington Post
January 4, 2021
Category: Forestry
Region: International

RIO DE JANEIRO — After months of planning, everything was ready. The investigators had their targets, their schedule and their plan: fly to 49 of the illicit gold mines that were poisoning the Amazon rainforest, destroy the equipment and shut the operations down. …But members of the Brazilian military, now in control of the fight against environmental crime, fueled their helicopters too early, at an airport too close to the mines. News of the operation quickly leaked. A story hit the press. The miners vanished into the forest. …The unraveling of the mission, reconstructed through court documents, illustrates many of the themes that have come to characterize Brazil’s militarized effort to end the escalating environmental destruction of the Amazon forest: disorganization, inexperience and allegations of political bias, ending in a failure to get the job done.

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Carbon, Climate & Bioenergy

A Rare Look at Impacts to Redwood Forests and “Downstream” Carbon Emissions

By Hanson Bridgett
JDSupra
January 4, 2021
Category: Carbon, Climate & Bioenergy
Region: United States, US West

In a rare move, the Ninth Circuit Court of Appeals published two opinions about subjects that are hardly ever discussed in the court’s published National Environmental Policy Act (NEPA) decisions. …For the first time since its 1988 decision in Sierra Club v. U.S. Forest Service (9th Cir. 1988), the Ninth Circuit has published a new decision that applies the hard look doctrine in a case about impacts to an old-growth redwood forest. …In a separately published decision, Center for Biological Diversity v. Bernhardt, the Ninth Circuit examined indirect “downstream” carbon emissions associated with the construction of a new oil extraction project in Alaska (e.g., emissions from transporting and storing oil). …The Bernhardt decision will provide important guidance for structuring future NEPA analyses of indirect carbon emissions for oil extraction facilities.

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