Structural Engineered Wood Products in the Pacific Rim and Europe:

Transcription

1 Structural Engineered Wood Products in the Pacific Rim and Europe: The markets for laminated veneer lumber (LVL), laminated strand lumber (LSL), glue laminate beams (glulam) and I-joists are in the early stages of the product life cycle. While the global economic and financial crisis has had a negative impact on production and consumption, the forthcoming upturn will present significant opportunities for market and industry development in North America, Australasia, Europe, Russia and North Asia. Extract to indicate the general nature of the report FORESTRY

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3 Contents EXECUTIVE SUMMARY...i 1. INTRODUCTION Product descriptions Laminated veneer lumber Parallel strand lumber Oriented strand lumber/laminated strand lumber Engineered strand lumber Glue laminated lumber Wooden I-joists Industry developments Objectives Methodology Organisation of report NORTH AMERICA Economic forecasts, North America United States Canada Building industry forecast, North America United States Canada The forest industry and resource base, North America United States Canada Structural engineered wood products industry overview, North America Laminated veneer lumber production facilities, North America I-joist production facilities, North America Glue laminated lumber production facilities, North America Laminated strand lumber, oriented strand lumber and parallel strand lumber production facilities, North America Production of structural engineered wood products, North America Laminated veneer lumber production forecasts I-joist production forecasts Glue laminated lumber production forecasts Consumption of structural engineered wood products, North America Laminated veneer lumber consumption forecasts I-joist consumption forecasts Glue laminated lumber consumption forecasts...32

4 2.7 Exports and imports of structural engineered wood products, North America LVL exports and imports I-joist exports and imports Glulam exports and imports Capacity utilisation LVL capacity utilisation Cost of production Price forecasts, engineered wood products, North America LVL prices, North America I-joist prices, North America Glulam prices, North America Product characteristics, North America Wood species, North America Resins, North America Product dimensions, North America Product performance, North America End uses LVL end uses, North America I-joist end uses, North America Strand lumber end uses, North America Glulam end uses, North America Potential new applications New product developments Hardwood LVL Scrimber Delta strand Glulam Distribution channels LVL and I-joists Glulam Product promotion AUSTRALASIA Economic forecast, Australasia Australia New Zealand Building industry forecast, Australasia Australia New Zealand...52

5 3.3 The forest industry and resource base, Australasia Australia New Zealand Production facilities, Australasia Laminated veneer lumber production facilities I-joist production facilities Glulam production facilities Strand lumber production facilities Production of engineered wood products in Australasia Production of LVL Production of I-joists Production of glulam Consumption of engineered wood products, Australasia Consumption of LVL Consumption of I-joists Consumption of glulam Imports and exports of engineered wood products, Australasia Imports and exports of LVL Imports and exports of I-joists Imports and exports of glulam Cost of production Product pricing Product and quality characteristics, Australasia Wood species and resins, Australasia Product dimensions, Australasia Product performance, Australasia End uses Building applications using engineered wood products Potential new applications Distribution channels Product promotion EUROPE Economic forecast, Europe Building industry forecast, Europe Resource base and forest industry overview Finland Austria Sweden Germany Russia...84

6 4.4 Production facilities Laminated veneer lumber I-joists Glulam Production Laminated veneer lumber I-joists Glulam Consumption Laminated veneer lumber I-joists Glue laminated beams Exports and imports Laminated veneer lumber I-joists Glue laminated beams Cost of production LVL and I-joists Glulam Price forecasts, engineered wood products, Europe LVL prices, Europe I-joist prices, Europe Glulam prices, Europe End uses The United Kingdom Western Europe Scandinavia Product characteristics, Europe Wood species Resins Product performance Product dimensions Distribution channels Product promotion NORTH ASIA Economic forecast, North Asia China Japan

7 5.2 Building industry forecast China Japan Resource base and forest industry overview China Japan Production Facilities Laminated veneer lumber and I-joist production facilities Glue laminated lumber production facilities Production Japan China Consumption Japan China Exports and imports Japan China Cost of production Product pricing Japan China End uses Japan China Product characteristics Wood species Resins Product performance Distribution channels Product promotion SOUTH EAST ASIA Economic forecast, Southeast Asia Indonesia Malaysia Building industry forecast, Southeast Asia Indonesia Malaysia

8 6.3 The forest industry and resource base, Southeast Asia Indonesia Malaysia Production of LVL in Southeast Asia Indonesia and Malaysia Timber species utilised Production and consumption of LVL Potential for glulam and I-joist production in Southeast Asia SOUTH AMERICA Economic forecast, South America Brazil Chile Building industry forecast, South America The forest industry and resource base, South America Brazil Chile Potential for producing structural engineered wood products in South America Chile Brazil

9 Tables I Real GDP forecasts, selected countries, iii II Housing construction forecasts, selected regions, iv III Global production of engineered wood products: v IV Production of structural LVL by region, vi V Production of I-joists by region, vii VI Production of glulam by region, viii VII Global consumption of structural engineered wood products, x VIII Consumption of structural LVL by region, x IX Consumption of I-joists by region, xi X Consumption of glulam by region, xii XI Exports and imports of glulam, United States and Canada, xv XII Net exports of LVL, glulam and I-joists, Australasia, xvi XIII Export capacity and net exports, LVL, Europe, xvii XIV Net exports, I-joists, Europe, xviii XV Export capacity and net exports, glulam, Europe, xviii XVI Imports of structural glulam by country of origin, Japan, xix XVII Imports of glulam, Japan, xx XVIII Exports of LVL and glulam, China, xxi XIX Price forecasts, structural LVL xxii XX Price forecasts, I-joists, xxiii XXI Price forecasts, glulam, xxiv 2.1 Economic forecast, United States, Economic forecast, Canada, Housing commencements, North America, LVL manufacturers share of production capacity, North America, Laminated veneer lumber production facilities North America, I-joist production facilities, North America, Glue laminated lumber production facilities, North America, Timberstrand (LSL), parallam (PSL) & oriented strand lumber (OSL) production facilities, North America, North American production of laminated veneer lumber, North American production of I-joists, North American production of glue laminated beams, North American consumption of laminated veneer lumber, North American consumption of I-joists, North American consumption of glue laminated beams, Exports and imports of glulam, United States and Canada, Capacity utilization, export capacity and net exports, LVL, North America, Cost of production, LVL, glulam, and I-joists, North America, LVL, glulam and I-joist prices, North America, End Uses for LVL, glulam and I-joists, North America, Key economic indicators, Australia, Key economic indicators, New Zealand,

10 3.3 Housing commencements, Australasia, Laminated veneer Lumber production facilities, Australasia, I-joist production facilities, Australasia, Glulam production facilities, Australasia, OSL planned production facilities, Australia Production of structural engineered wood products, Australasia, Production, consumption, capacity utilization and exports, LVL Australasia, Production, consumption and exports, I-joists, Australasia, Production, consumption and exports, glulam, Australasia, Consumption of Structural LVL, glulam and I-joists, Australasia, Net exports of LVL, glulam and I-joists, Australasia, Production Costs, Engineered Wood Products, Australasia, Mill door price ($AU) of structural engineered wood products, Australasia, Mill door price ($US) of structural engineered wood products, Australasia, Material use in housing applications, Australia, Economic forecast, Europe, Housing completions, Europe, LVL production facilities, Europe, I-joist production facilities, Europe, Glulam production facilities, Europe Production of LVL, glulam and I-joists, Europe, Production, consumption, capacity utilization and exports, LVL, Europe, Production, consumption and exports, I-joists, Europe, Production, consumption, capacity utilization and exports, glulam, Europe, Consumption of LVL, glulam and I-joists, Europe, Export capacity and net exports, LVL, Europe, Net exports, I-joists, Europe, Export capacity and net exports, Glulam, Europe, Exports of glulam by European countries to Japan, LVL prices, Europe, I-joist prices, Europe, Glulam beam prices, Europe, Glulam distribution Europe: 2000 and Economic forecast, China, Economic forecast, Japan, Housing commencements, North Asia, Log imports by country of origin, China, Laminated veneer lumber producers by location and production capacity, Japan, I-joist producers, Japan, Major laminated veneer lumber producers, China, Other laminated veneer lumber producers, China, I-joist producers, China, Glulam producers, Japan, Major structural glulam producers, China, Production of structural LVL, glulam and I-joists, Japan, Production, consumption, capacity utilization and exports, structural LVL, Japan,

11 5.14 LVL production, Japan, Structural and non-structural glulam production, Japan, Structural glulam production by type, Japan, Production of LVL, glulam and I-joists, China, Consumption of Structural LVL and glulam, Japan, Consumption of LVL, Japan, Production, consumption and imports, structural glulam, Japan, Consumption of LVL, glulam and I-joists, China, Imports of glulam, Japan, Imports of structural glulam by country of origin, Japan, Exports of LVL and glulam, China, Glulam and LVL Prices, Japan, LVL, glulam and I-joist prices, China Key economic indicators, Indonesia, Key economic indicators, Malaysia, Housing construction, Southeast Asia, LVL production facilities, South East Asia, Key economic indicators, Brazil, Key economic indicators, Chile, Charts 2.1 Product life cycle LVL manufacturers share of production capacity, North America, Distribution system for LVL, I-joists and glulam in North America Estimated variable production costs for LVL, Australasia, Distribution system for LVL, I-joists and glulam in Australia Distribution system for LVL and glulam in Japan Figures 1 Application of engineered wood products to the first floor of a residential house Parallel strand lumber Engineered wood products, LVL, OSL and I-joists...5

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13 Introduction Structural Engineered Wood Products in the Pacific Rim and Europe INTRODUCTION This is the fourth edition of Engineered Wood Products in the Pacific Rim and Europe. The study has evolved from our original focus on laminated veneer lumber, to a more comprehensive assessment of structural engineered wood products, including laminated veneer lumber (LVL), I-joists and glue laminated lumber (glulam) in each of the key producing and consuming countries. The study assesses trends and prospects for demand, supply, investment and trade for each of these products. It complements the first edition of our study Oriented Strand Board (OSB) and Lumber (OSL) in the Pacific Rim and Europe: Product descriptions Products such as glue laminated beams have been common in many markets for over 100 years, with their origins said to date back several centuries. However, most other engineered wood products have emerged over the past three decades as alternatives to the dwindling supplies of heavy structural solid sawn timber. Other factors that have influenced the growth in the use of engineered wood products include cost and superior performance. The following provides a brief description of some of the major engineered wood products Laminated veneer lumber (LVL) LVL is an engineered wood composite produced from rotary peeled veneers, glued together with grain orientated along the length of the panel. It is similar to plywood, although the grain of adjacent layers of veneer is typically aligned in the same direction, unlike plywood which has alternative layers aligned at right angles. The panel is then resawn into sawn timber dimensions. LVL will compete with sawn timber where either high strength is required, in particular in longer lengths, or where stability is an important component. LVL is commonly used in I-joist manufacture where it offers superior strength and stability over traditional sawn timber. Figure 1: Application of engineered wood products to the first floor of a residential house OSB I-Joist LVL Parallel Strand Lumber Courtesy of APA-EWS 3

14 Structural Engineered Wood Products in the Pacific Rim and Europe Introduction Parallel strand lumber (PSL) (Parallam ) PSL is manufactured from long strands of veneer, between 60 cm (2 ft) and 2.4 m (8 ft) in length, with the strips pressed and glued together into large dimension beams. The product is very strong and used in applications such as headers and beams. It is currently only manufactured by Weyerhaeuser (TrusJoist) in the United States and Canada Oriented strand lumber/laminated strand lumber (OSL/LSL) (TimberStrand ) Figure 2: Parallel Strand Lumber (Parallam) Courtesy of APA-EWS OSL and LSL are similar products and are also similar to oriented strand board (OSB). In the production of OSL and LSL panels, chips are aligned in the same direction and, like LVL, the panel is resawn into lumber sized dimensions. OSL and LSL are differentiated by the dimensions of the constituent strands. PSL and LSL require the length of strands to be a minimum of 150 times the least dimension of the strand. The average length of the OSL strand needs to be between 75 and 150 times the least dimension. Timberstrand reportedly conforms to the LSL specification. Both LSL and OSL can be used in a wide range of applications including timber framing and utilise species such as aspen and poplar that are not generally suitable for the production of solid timber products Engineered strand lumber (ESL) ESL is a new product currently being developed by Lignor in Australia. The product is similar to LSL and OSL, but will be manufactured from eucalypt and will have longer strands. It is expected to be a special product with high strength characteristics, and inherent, water and termite resistant characteristics, while the strength, water and termite resistance of LSL and OSL will depend on the type of resource that is used. A wide range of strength and durability characteristics are likely to emerge in these products over the next decade Glue laminated lumber (Glulam) Glulam consists of sawn timber shorts, usually without defect, finger-jointed and face-glued to produce large dimension beams. The finger-joints and use of defect free timber provide a high strength product, usually superior to sawn timber of the same species. The process also allows for the production of large dimensional timber and very long spans. As well as heavy structural applications glulam can be curved and is often used for appearance applications, or in situations such as exposed beams that take advantage of both the structural and appearance qualities of the product. 4

15 Introduction Structural Engineered Wood Products in the Pacific Rim and Europe Wooden I-joists Wooden I-joists are manufactured by combining a flange, of LVL, solid timber, or strand lumber, and a web, of OSB or plywood. The top and bottom chord/flange typically has dimensions of 40mm to 65 mm. The depth of the joist is determined by the width of the web, with the depth typically ranging between 150 mm and 450 mm. The use of strand lumber in the flange of I-joists has the potential to increase strongly in the next few years, as new strand lumber facilities are developed in North America, Europe, Australasia and possibly China. This may enable the production of an I-joist with the flange and the web made of the same material, as strand lumber and OSB are manufactured using a similar process. 1.2 Industry developments Courtesy of APA-EWS Figure 3: Engineered wood products LVL, OSL and I-joists There has been considerable change in the industry over the past decade. The industry in North America consolidated in the late 1990 s and the early part of the new century, with very limited addition to production capacity from 2005 to Despite the lack of new production facilities over this period, consumption continued to strengthen until the recent sub-prime mortgage crisis and the ensuing economic and housing construction slump in the United States. While much of the overcapacity that was weighing down the industry had been absorbed by 2007, with high capacity utilisation rates, the subsequent downturn has resulted in significant overcapacity, which will need to be absorbed quickly during the forthcoming upturn if capacity is to expand further. The LVL and glulam industries will also need to compete with the development and expansion of strand lumber over the forecast period, while the I-joist industry will have the option of incorporating strand lumber as a competing product to LVL and solid timber. Production capacity of LVL and I-joists in Australasia has expanded rapidly over the past decade, and the past three years has been characterized by the absorption of new capacity and growth in imports. Growth in production capacity and consumption in Australasia will likely strengthen over the next five years, as the economy and construction industry moves into an upswing following the current cyclical low. The prospect of increased exports will contribute to a more positive environment for expansion in production capacity, as will constraints on the availability of domestically produced sawn timber. The development of strand lumber will compete with LVL and glulam for market share, and is a potential product to incorporate into I- joists. By 2005, Europe had absorbed much of its available LVL production capacity, and there has been considerable expansion in Finland in 2004 and 2005, and more recently in Germany and Russia. There has also been considerable expansion in I-joist and glulam production capacity since 2006, and a restructuring of the industry. Following the current downturn in housing construction, there will be further opportunities to expand production capacity. 5

16 Structural Engineered Wood Products in the Pacific Rim and Europe Introduction While the current economic and housing downturn has created a climate of uncertainty, the underlying fundamentals suggest that over the longer term, there will be significant potential to expand I-joist capacity, and the capacity to produce products such as LVL and OSL. Much of the increase in glulam production capacity has been targeted at Japan. Exports of glulam to Japan grew rapidly in the three years to 2007, but have more recently been subdued. The market for LVL in Japan has been relatively flat over the past five years, and is likely to remain so over the next five years. While glulam consumption in Japan grew rapidly in the three years to 2007, the market has become very competitive, with the increased availability of glulam from exporters in Europe. 1.3 Objectives The main purpose of this report is to provide an assessment of the global prospects for LVL, I-joists and glulam, to allow companies to make informed decisions with respect to production, trade and investment. The report aims to: Forecast demand and supply of LVL, I-joists and glulam, taking into account the expanding market share of these products in key end use applications; Identify the existing players in the industry Identify key end use applications within each of the main consuming countries and the potential to increase consumption within these applications by substitution for other materials; Identify potential new applications for LVL, I-joists and glulam within each of the key consuming countries; Identify opportunities for investment in LVL, I-joist and glulam production capacity and the timing of investments to best take advantage of capacity utilisation requirements. 1.4 Methodology The general methodology used for this study is the product of 30 years of methods research and development by BIS Shrapnel, combined with the experience and background of the author. The report compiles both publicly available and private company data on the engineered wood products industry from a variety of sources. A key element of the methodology was the field research, which included interviews with major producers, industry associations, distributors, and research organisations in the key producing and consuming countries. These interviews, together with published data, provide the basis for the analysis and forecasts for the engineered wood products industry in each country. 6

17 Introduction Structural Engineered Wood Products in the Pacific Rim and Europe Organisation of report The report is organised into chapters by six regions, including North America, Australasia, Europe, North Asia, Southeast Asia, and South America. The LVL, I-joist and glulam industries are analysed separately by country within each region. For each country the report provides economic and building industry trends and forecasts, an overview of the resource, and historical data and forecasts for production, consumption, and prices where they are available. The executive summary brings together the key conclusions and findings, and provides an interregional comparison and global overview of the industry. The regions and key countries are: North America: Canada, United States Australasia: Australia, New Zealand Europe: Finland, Germany, United Kingdom, France North Asia: Japan, China Southeast Asia: Malaysia, Indonesia, Vietnam South America: Chile, Brazil. 7