MTIB News Extracts (Vol.25/06/16) MTIB News Extract Vol. 25/06/2016

Transcription

1 MTIB News Extract Vol. 25/06/2016

2 This weekly information service provided by MTIB represents one of our efforts to provide the timber industry regularly updated business information on forestry and timber and the trading environment. This enables quick reading of trends, developments and business opportunities to be identified. Since its launching, the service is well received and I thank you for your continued support especially your comments and suggestions. We will continue to upgrade the quality of the news items for the interest and benefit of the industry and hope your association s members will continue to benefit from it. Please communicate with us regularly so that we can improve the information flow based on your feedback. We look forward to hearing from you. Thank you. Dr. Jalaluddin Harun Director General Malaysian Timber Industry Board

3 INDONESIA: EAST KALIMANTAN MAY STOP CONVERTING FOREST LAND According Wahyu Widhi Heranata from the East Kalimantan Provincial Forestry Department, the provincial government is considering not allowing the conversion of forest land into palm oil plantations. Between , the province has lost an average of 92,900 hectares of land per annum. The province has met its 1 million hectares of palm oil plantation target. The move will help to slow down deforestation in the province, said Wahyu. Bisnis Indonesia, 08 Jun 2016 VIET NAM: USD 2.58 BILLION WOODEN PRODUCTS EXPORTED Viet Nam exported USD 2.58 billion (EUR 2.27 billion) of wooden products in January-May This was a 2.08% increase compared to the same period in The figures were revealed by Viet Nam's Industry and Trade Ministry. In 2016, the nation is forecasted to export USD 7.2 billion of wooden products. This will be an increase compared to USD 6.9 billion in The projection was revealed by the Handicraft and Wood Industry Association of Ho Chi Minh City. Vietnam News, 10 Jun 2016

4 INDIA: ANTI-DUMPING (AD) DUTIES IMPOSED ON VIET NAM AND INDONESIAN MDF PRODUCERS An announcement on the final decision on Anti-Dumping investigations on plain medium density fibreboard (MDF) imported from Indonesia and Viet Nam has been announced by the Indian Directorate General of Anti-Dumping and Allied Duties (DGAD). According to DGAD, local production sector was substantially affected by imported products from Viet Nam and Indonesia. The DGAD made a conclusion that three Vietnamese producers and exporters that fully cooperated and provided answers to its questions were imposed with imposed dumping margins of 0% to 15%, while the others were imposed with dumping margins of 40% to 50%, said the Viet Nam Competition Authority (VCA). Anti-dumping duties will be applicable in five years. Duty below the minimum level is enjoyed by one Vietnamese business, while the other two will see duties of USD (EUR 13.06) per cubic metre and USD per cubic metre. The anti-dumping lawsuit on MDF products were lodged by India after complaints of Mangalam Timber Products and Greenply Industries. Besides that, duties for other businesses from Viet Nam and Indonesia stood at USD per cubic metres and USD per cubic metres respectively. Vietnam Investment Review, 09 Jun 2016

5 JAPAN: OFFICE FURNITURE IMPORTS (HS ) Compared to February, Japan s March imports of wooden office furniture were down around 6%. China remains the main supplier of wooden office furniture to Japan accounting for just over half of all wooden office furniture imports. In March this year imports from China rose 26% while imports of wooden office furniture from Poland, one of the main suppliers, dropped a massive 60% but imports from Italy were flat. The top three suppliers China, Poland and Italy accounted for almost 80% of Japan s March imports of office furniture. In previous months shippers in Portugal were major contributors to Japan s sources of office furniture but in March there was a significant fall in imports from Portugal. Global Wood, 1 15 May 2016

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7 EU: UPTURN IN EU CONSTRUCTION SECTOR ACTIVITY The Eurostat Construction Production Index shows that EU construction sector activity turned upward in the last quarter of 2015 and the rising trend continued into the first quarter of Strong growth in activity in Germany, Netherlands, and Spain offset weakening activity in the UK and Poland. Activity in France and Belgium remained flat during this period. Activity in Italy remains at a very low level but there were some minor gains in the last quarter of Further insight into the EU construction market is provided by the 2015 European Architectural Barometer report published by independent research agency Archvision in March 2016 based on a survey of 1,600 architects in eight European countries. The survey indicates slow but consistent growth in European construction activity in 2015 with faster recovery expected in 2016 and Global Wood, 1 15 May 2016

8 Eurostat Construction Production Index (2010=100)

9 FINLAND: FELLING 58.5 MILLION CUBIC METRES According to the Natural Resources Institute Finland, a total of 58.5 million cubic metres of wood was felled for industry in Finland in 2015, up 5% from 2014 and 12% above the average of the previous 10 years. This is the highest felling volume ever recorded in the statistics. Logs accounted for 24.6 million cubic metres, up 2% from 2014, and pulpwood for 33.9 million cubic metres, up 6% from Felling from private forests totalled 48.1 million cubic metres. Felling from forest industry companies' forests and state-owned forests totalled 10.4 million cubic metres, down 8% from Press Release, Natural Resources Institute Finland, 10 Jun 2016 FINLAND: VALUE OF EXPORTS OF FOREST INDUSTRY PRODUCTS UP 4% According to preliminary data provided by the Natural Resources Institute Finland, the real value of Finland's exports of forest industry products totalled EUR 2.86 billion in the first quarter of 2016, up 4% from the corresponding period in Finland's wood imports increased by 6% to 2.34 million solid cubic metres.

10 In the first quarter of 2016, imports of birch pulpwood totalled 1.03 million cubic metres and imports of chips 0.65 million cubic metres. Pulpwood, including chips, accounted for 84% and logs for 11% of Finland's wood imports. Press Release, Natural Resources Institute Finland, 08 Jun 2016 GERMANY: HARDWOOD VENEER IMPORTS FROM US RISE BY 20% In the first quarter of 2016 Germany imported USD 6.1 million (USD 5.37 million) worth of hardwood veneer from the US. This was an increase of 20% compared to the same period in Holz Zentralblatt, 29 May 2016 POLAND: FURNITURE TOPS LIST FOR MOST EXPORT GROWTH A TOP ranking produced by Bank Zachodni WBK shows the 50 exporting industries in Poland which have the greatest potential of increasing overseas sales. In first position are furniture and furnishing accessories, which scored 75 points out of a maximum of 100 in the ranking. Furniture exports rose by 7% year-on-year in 2015 and are predicted to be worth possibly EUR 9 billion (USD billion) in In second place in the table with 60 points are products made of cereal, milk or flour, exports of which rose by 20.7% in 2015 and which are seen to have great potential for growth. In third place with 55

11 points are furs. Poland is the leading exporter of furs in Europe with an estimated 750 farms in existence and the industry rapidly expanding. Bankier.pl, 07 Jun 2016 SWEDEN: DEMAND FOR CONSTRUCTION WOOD RECORD HIGH Forest industry group Södra has reported that demand for construction wood was extremely high in Sweden in April and May; particularly in May when supplies to Swedish building markets reached record levels. Thanks to low interest rates, high demand for new homes and beneficial tax deduction regulation, Södra expects the trend to continue throughout Göteborgs Posten, 08 Jun 2016 SPAIN: NEW HOUSING STOCK STARTS TO RUN OUT It has been indicated that an improvement in activity within the real-estate sector in Spain is slowing down the oversupply of new homes in the country. In some cities, the stock of new housing has even become exhausted and there has been an increase in off-plan sales. According to the Servihabitat Trends report, this type of property reached 492,000 units in 2015, down 28.3% compared with the previous year.

12 It is expected that the downwards trend will become more highlighted in the coming months, thanks to the pull of housing sales. A 10% increase in transactions to 440,000 properties is forecast, a rise in demand that will translate into a 25% reduction in stock to 367,500 homes. It has been highlighted that distribution is not equal, with some provinces, such as Murcia, Cuenca and Almeria, having higher levels of vacant new housing than others. In Madrid, however, it is estimated that new housing stock could run out in around ten months. ABC - Spain, 08 Jun 2016 RUSSIA: SOFTWOOD ROUNDWOOD EXPORTS MAY BE BANNED A bill to ban softwood roundwood exports for five years may be submitted for consideration of the State Duma. Penalties may be introduced for violation of the rules: RUB 50, ,000 for officials, RUB 300, ,000 for entrepreneurs without a legal entity, RUB million for legal entities. In all cases the timber will be attached. The ban on exports of unprocessed (round) softwood will help to gradually increase the available wood processing capacity in Russia, to create more jobs. The adoption of the project will significantly reduce illegal exports of round timber, as well as replenish the state budget sales of wood products with higher added value. Bumprom, 03 Jun 2016

13 RUSSIA: SUPPLY OF NEW HOUSING DEVELOPMENTS ON OLD MOSCOW TERRITORY UP According to the analytical centre SRG, the supply in new housing developments on the old Moscow territories grew by 69.2% to 2.20 million square metres in Q1 2016, compared with the same period of The supply grew by 39% in business class apartments, by 14% in economy segment, by 12% in premium segment. The supply in elite class decreased by 5%. The volume of supply in new apartment complexes (residential premises which are non-residential on paper; they do not provide for the residence registration) decreased by 7% in business class, by 5% in elite, by 5% in economy class, by 3% in comfort class. A 1% growth is registered in premium class apartment segment. RBC, 06 Jun 2016 CHILE: FORESTRY EXPORTS DOWN 1.8% IN FIRST FOUR MONTHS Chile's forestry exports dropped 1.8% to USD 1.78 billion (EUR 1.57 billion) in the first four months of 2016, compared with the corresponding period last year, according to data from Infor. Growing demand from China and the US was not enough to boost exports during the period that were affected by lower prices compared to Of a total of 20 products assessed by Infor, only one, bark less Eucalyptus chips, saw an annual rise in cost, of a modest 0.6%. The other 19 products saw price reductions.

14 Despite the economic slowdown in China, forestry exports to China rose 13% year-on-year to USD million in the first four months of Exports to the US climbed 3.4% to USD million. Both markets concentrate 42% of Chile's forestry exports. Chile's forest industry chamber Corma expects the sector's exports to hit USD 5.4 billion this year, which is the same amount recorded in Corma believes that all negative effects may stabilise throughout the year and highlights that some long-fibre pulp producers are trying to increase their prices, although timidly at the moment. El Mercurio, 08 Jun 2016 NEW ZEALAND: NEW ZEALAND S INDIGENOUS FORESTS New Zealand's 6.4 million hectares of indigenous forest comprising mainly beech, kauri, rimu taraire and tawa are located in the mountains on the West Coast of the South Island. Less than one percent of New Zealand's total forest production is harvested from indigenous forests. The main threats to these forests are introduced animals and plants and an increasing demand from people for access and recreational opportunities. Itto.int/mis_detail, 1 15 June 2016

15 Source: New Zealand Official Yearbook

16 US: HOMES FOUND TO BE 61% BIGGER IN 2015 FROM 40 YEARS AGO According to the data from the Census Bureau, the new single-family homes' median size was at 2,467 square feet in 2015, 61% bigger than in 1975 and 11% bigger than 10 years ago. The homes are also having more amenities like air conditioning and bathrooms. In 2015, about 93% new homes had air conditioning as compared to 46% in Around 96% new homes had a minimum of two bathrooms as compared to 60% in The increase in home size partly explains the increase in prices. In 2015, median sales price was USD 296,400 (EUR 260,759.55) for a new home. The new home prices hit a record in 2016 even when adjusted for inflation. Wall Street Journal (The) - US, 02 Jun 2016 US: ECONOMIST EXPECT 1.8% GDP GROWTH According to the National Association for Business Economics' (NABE) survey of economists, the median estimate of gross domestic product (GDP) growth is just 1.8% in 2016 as compared to 2.2% expected in March The estimate for 2017 is a 2.3% GDP growth. Corporate profit growth is also expected to be at a negative 2% in June 2016 as compared to a forecast of a 2% increase in March A total of 57% of the economists have said that the election-related uncertainty has led them to decrease expectations.

17 Another factor that has led to a decline is that recruitment has slowed, reducing from 5% to 4.7% in May 2016 but the decline has been due to almost half-million unemployed people in the US stopping their search for job and thus not being counted as unemployed. A total of 49% of economists expect low oil prices to have a positive impact on economic growth as compared to 18% expecting a negative impact. For 2017, 55% expect a positive impact and 7% expect a negative impact. Home prices are expected to rise 5% for the fourth quarter of The median estimate is that home-prices growth will slow to 4.3% in Chicago Tribune, 06 Jun 2016 GLOBAL: WORLD BANK LOWERS 2016 GROWTH FORECAST TO 2.4% The Global Economic Prospects Report by the World Bank has lowered its 2016 global growth forecast to 2.4% from 2.9% in January The downward adjustment is attributed to weak global trade, sluggish growth in advanced economies, diminishing capital flows and stubbornly low commodity prices. Advanced economies have deteriorated on the back of weak manufacturing activity and global trade, and are now struggling to gain traction.

18 As for emerging economies, growth will likely remain robust in India, which is projected to grow 7.6% in China is expected to expand by 6.7%, compared to 6.9% in 2015, while Russia and Brazil are set to remain in deeper recessions. Expansion in East Asia and the Pacific is forecast to drop from 6.5% to 6.3%, but remain flat at 4.8% excluding China. Growth will likely be driven by strong consumption due to low commodity prices (in Viet Nam, Thailand and the Philippines), as well as increased investment in Malaysia, Indonesia and Thailand. Meanwhile, South Asia is projected to grow 7.1% in 2016, slightly higher than 7% in the preceding year amid slowing export growth. The World Bank called for fiscal spending to focus on infrastructure, as well as other areas such as promotion of productivity-enhancing technologies, diversification of economic activities, structural economic reforms, and increased emphasis on trade facilitation. Business Times - Singapore, 08 Jun 2016

19 By: Trade Development Division Malaysian Timber Industry Board (Ministry Of Plantation Industries & Commodities) Level 13-17, Menara PGRM, No. 8 Jalan Pudu Ulu, Cheras P.O.Box 10887, Kuala Lumpur