world news - 23.04.2003
Holland: Laminated Hardwoods Get a Boost
Sources in the Dutch trade have advised that there are hardly quotations
available at the moment for the most important Dutch dimension i.e. KD DRM PHND
3x5" so the CNF Rotterdam prices at the end of this report should be seen as
just indicative of trends. Shippers are generally avoiding quoting for this size
and several other common sizes due to a shortage of raw material supply which
could lead to very firm prices if not to increases despite the continued subdued
demand in Holland and the surrounding countries. Prices for certain common items in non-PHND quality have already increased by
between 2 to 4% and PHND-items are likely to follow suit. The trade is reporting
that the supply of "Dutch demand" scantlings in Indonesian Bukit seems at a
complete standstill. However, the flow of some good quality Bukit logs from the
Malaysian state of Perak is only just beginning so it will take months before
this sawnwood becomes available in square edged kiln dried scantlings. Also of concern to the trade is the unknown impact the current war in Iraq
may have on freight costs. Shippers now have abandoned the firm freight issue
and are using an ocean freight of US$ 1650 per 40fter box to Rotterdam with
variations for Buyers' account. Generally it is expected that effective April
1/2003 the freight for 40ft containers will increase by US$2-300 per box. Some
even predict an increase to USD2000 per box. At the moment no one is sure how
much freight and how much bunker surcharge must be paid. Adding to the
uncertainty is the fear that vessels may be forced to sail via the Cape instead
of via Suez which would add to freight charges. Furthermore, the availability of
containers in the dispatch ports seems limited given the number of shutouts and
roll— overs. The GIW has also determined that, effective April 1, 2003, all door and
window frames, windows and doors have to be made of solid hardwoods. The
institute says sapwood may not be present in such components. This regulation
applies to construction where the bricklaying is done around the already
installed window or doorframes. This measure has some serious implications for a number of
species, qualities and for laminated/ fingerjointed items but the GIW said these
regulations had to be introduced because of numerous complaints and claims after
the use of Hemlock (with sapwood) and fingerjointed and/or laminated spruce.
Particularly in the latter it was reported that delamination and/or poor
jointing in combination with the presence of sapwood and/or different qualities,
had led to failure of the protecting coating (paint) after which rot/decay
developed. Few problems with hardwoods were reported and those that were related to with
some delamination of laminated Indonesian DRM. According to the GIW softwoods are still permitted provided the joinery item
is installed in the building, after the brick work is done, the so-called KAPLA
frames (KAPLA is an acronym for KAnt en klaar PLAatsbaar = ready made,
installable). The softwood in for KAPLA installation has to be entirely sapfree
but even then the bottom rail of the window frame must still be made from
sapfree hardwood. This GIW advice may lead to a higher consumption of hardwoods in the
Netherlands such as Meranti, Sapelli, Sapupira etc. Analysts report that, in
some places more Sapupira is being sold already. The Dutch VVNH is currently
working to collect data that could dispute the GIW advice on limiting softwood
use.
In the previous report reference was made to the
recommendations of the Garantie Instituut Woningbouw aka GIW www.giw.nl
(Warranty Institute for House-building) which implied that, for cladding and
exterior application the use of Hemlock no longer falls under the
warranty-arrangement and this timber should be excluded from window-components.
In addition the use of whitewood (vuren in Dutch) has come under scrutiny. The
leading Dutch timber trade magazine 'Houtwereld' has recently published an
interesting article on this issue.
Source: ITTO Report
See also:
- — Wood Processing Seminar in Russia. A seminar on a theme of “Complex processing of wood in conditions of the Far East” was carried out on March 12-13, 2003 at the Japanese center of Khabarovsk, Russia, under aegis of General consulate of Japan in Khabarovsk.
- — Italy: Woodworking Machinery Orders Still Falling. The critical situation of global economy was once again confirmed by a significant decrease in orders (-11.1 percent from the same period of last year) that affected Italian woodworking machinery and technology in the first quarter of 2003.
- — Argentina: Devaluation Boost For Exports
- — Forest Industry Production in Finland in January-March 2003
- — Forest Unions against B.C. Timber Auctions
