The Trump administration has fired the first broadside in its battle against bilateral trade imbalances. And its aim was not what most people expected. Canada, not China, is the target of the Trump trade team’s wrath.

Commerce Secretary Wilbur Ross has just announced a new 20% tariff on imports of Canadian softwood lumber. The US currently imports about $5.66 billion worth of softwood lumber from Canada every year. It is an essential input for the American construction and home repair industries.

This move is ostensibly in response to a petition from American lumber producers, who have long complained that Canada’s system of “stumpage” (charges for logging on Canada’s government-owned lands) amounts to an unfair subsidy.

The US has never managed to prove that Canada’s pricing is unfair: it has lost legal challenges at the World Trade Organisation and under NAFTA. But American lumber producers continue to complain, and American governments continue to launch futile legal action against Canada in response to their complaints. Viewed in this light, this move simply looks like yet another attempt to pacify American lumber producers.

But anyone who was paying attention to Trump’s pronouncements even before he was elected would have seen this coming. Canada was the first of six countries listed by Peter Navarro and Wilbur Ross as the primary “cause” of the USA’s trade deficit.

Consider that roughly half of our trade deficit is with just six countries: Canada, China, Germany, Japan, Mexico and South Korea. If we look at the bilateral relationships of America with each of these countries, improvement in our trade balance is clearly achievable through some combination of increased exports and reduced imports, albeit after some tough, smart negotiations – an obvious Trump strength.

The paper from which this quotation comes was issued in September 2016. It is the blueprint for President Trump’s trade policy. It was therefore always inevitable that Canada would be targeted for protectionist measures. And given the long-running dispute between Canada and the USA over softwood lumber pricing, the lumber industry was bound to be first in line. It will not be the last.

Canada’s response to Secretary Ross’s announcement was prompt and robust:
– The Government of Canada disagrees strongly with the U.S. Department of Commerce’s decision to impose an unfair and punitive duty. The accusations are baseless and unfounded…..
– The Government of Canada will vigorously defend the interests of the Canadian softwood lumber industry, including through litigation. In ruling after ruling since 1983, international tribunals have disproved the unfounded subsidy and injury allegations from the U.S. industry. We have prevailed in the past and we will do so again.
– Battle is joined. Though given the US’s stated intention to renegotiate NAFTA, and its threat to bypass WTO dispute resolution, it is difficult to see which international tribunals could now arbitrate. Canada could end up having to tolerate a level of tariff that it considers unfair, because the alternative is a highly damaging trade war. Sometimes it is better to put up with bullying.

Photo : Courtesy
Highway Trailers & Loggers
Contact: Brad French Phone: 604-855-7544
Toll Free: 1-800-661-3406
Email: bfrench@magnumtrailer.com

Magnum Trailer and Equipment Inc. 660 Riverside Rd. Abbotsford, BC, Canada V2S 7M6

Sawmills in Quebec and Ontario are running at record high levels, resulting in difficulty finding outlets for generated residuals, according to the North American Wood Fiber Review

Record high production at sawmills in Ontario and Quebec in 2016 has generated large volumes of residues in the two provinces, reports the North American Wood Fiber Review. In the past that would have been good news for the local pulp industry, but with a declining pulp and paper sector, many sawmills are finding it difficult to sell their byproduct locally.

Sawmills in Eastern Canada have been running at record high levels in 2016, with production reaching levels almost ten percent higher than in 2015 and almost 40 percent higher than five years ago. This has been very good news to the forest industry, with sawmills running at 97% operating rates in late 2016, according to the WWPA. However, there are also worrisome developments regarding the large volumes of residual chips that are being generated and where the chips can be sold.

The pulp sector has been the key consumer of residuals in the past, but with a shrinking pulp industry in both Ontario and Quebec, there are concerns that sawmills in the region might be forced to limit production levels because it may be difficult to sell off the large volumes of chips that are being produced.

Despite the oversupply of residues in Quebec, wood chip prices have not changed much over the past few years in Canadian dollar terms. Most contract prices for residues are set on an annual basis and after four years of practically unchanged prices, they fell almost five percent in the 1Q/17. It is likely that prices will decline in the future but this will not necessarily solve the problem with access to chips in the province. Either new production capacity needs to be added (e.g. wood pulp, pellets, composite panels or bio-based products), or sawmills will have to find other outlets for their chips outside the province. Alternatively, sawmills might have to reduce production levels in the future.

Although the latter alternative would be less desirable for both the domestic forest industry and for lumber consumers in the US to which much of the lumber is exported, it could still be a reality later this year. If the new US softwood lumber import tariff is implemented at such a high rate that it reduces the profitability of the lumber companies in the two provinces, it is likely to result in reduced production levels and thus declining supply of residual chips to find a home for.

The North American Wood Fiber Review has tracked wood fiber markets in the US and Canada for over 30 years and it is the only publication that includes prices for sawlogs, pulpwood, wood chips, pellet feedstock and biomass in North America. The 36-page quarterly report includes wood market updates for 15 regions on the continent in addition to the latest export statistics for sawlogs, lumber, wood pellets and wood chips.

Contact Information
Wood Resources International LLC
Hakan Ekstrom
Seattle, USA
info@woodprices.com
www.woodprices.com

A Chinese company has announced plans for a new particle board plant for Kawerau that is expected to bring 100 jobs to the district. The Chinese-based Guangxi Fenglin Wood Industry Group has announced plans to establish the plant, to be built on Putauaki Trust land adjoining SH34, within two years.

It will produce 600,000cu m of panel boards a year for exports mainly to China. The announcement comes following a recent visit to China by representatives of Kawerau District Council, the Putauaki Trust, Toi-EDA, Eastern Bridge, New Zealand Trade and Enterprise and the Ministry of Foreign Affairs and Trade.

The delegation visited the Fenglin Group’s Mingyang MDF (medium-density fibreboard) and Huizhou particle board plants, and met group founder Mr Liu, chairman Mr Cui and chief executive officer Mr Wang. Council economic and community development manager Glenn Sutton said a number of factors led to the group’s decision to invest in Kawerau.

Overseas Investment Office approval and other consents now need to be obtained, but if everything goes to plan the plant should be fully operational by 2020. The Fenglin Group is a leading wood industry group in China, listed on the Shanghai Stock Exchange.

It has four large-scale wood-based panel plants in Guangxi’s Nanning and Baise cities and in Guangdong’s Huizhou City, including two medium-density fibre board (MDF) facilities and two particle board (PB) facilities (one PB facility is in construction) with a total capacity of 1.1m cu m a year. The company also owns 14,000ha of fast-growing eucalyptus plantations for industrial use. More >>.

Source: Rotorua Daily Post

Barko Hydraulics, LLC has announced ARDCO Equipment as its new dealer for logging and land clearing equipment in Louisiana.

“ARDCO Equipment is a great addition to our dealer network,” said Alecia McKay-Jones, dealer development manager for Barko. “We look forward to them representing Barko and serving our valued forestry customers in the Gulf Coast region.”

Based in New Iberia, Louisiana, ARDCO Equipment will handle sales and service of Barko loaders, industrial wheeled tractors, harvesters and feller bunchers. The dealership was recently established after several years of operating a rental fleet in the area alongside ARDCO’s manufacturing operation.

“We’re thrilled to be the official dealer in the region for Barko,” said David Langley, director of business development and operations for ARDCO Equipment. “Their rugged lineup of forestry and logging machines is a perfect complement to ARDCO’s long-standing reputation as The Off-Road Standard.”

Barko Hydraulics, LLC is part of the Pettibone, LLC Heavy Equipment Group. Founded in 1963, Barko has consistently led the industry with innovative solutions to the forestry, scrap and construction markets, including industrial tractors, crawlers, handlers, loaders, forwarders, chippers and harvesters. For more information, call 715-395

Hiab, part of Cargotec, has delivered to its customer in Sweden the first LOGLIFT forestry crane equipped with the camera-based HiVisionTM control system. HiVision moves crane operation to the truck cabin. It has four cameras on top of the forestry crane that provide the operator with a realistic 270-degree view. This enables the crane operator to see the working area and operate the crane from the truck cabin using virtual reality goggles.

Hiab’s long-standing customer Ackestens Åkeri AB chose a LOGLIFT forestry crane with HiVision on their new Scania truck. “We have always been eager to try new things in our business,” says Mr. Johan Ackesten, the owner and founder of the company. “We were one of the first companies in this business in our area to buy a cabin-equipped forestry crane in the 1990s. When we saw and tested HiVision last year, it was quite obvious for us to go for this innovative solution. Also, my sons working with me in the company were very eager to acquire the next generation forestry crane”, Mr. Ackesten explains.

The criteria for Ackestens Åkeri buying LOGLIFT forestry crane with HiVision were safety, ergonomics and better economy. “Climbing into the cabin especially in harsh weather conditions can be dangerous. There is no need to do that anymore. Also, our customers in the forest industry appreciate that we can load more timber when we save on the weight of the cabin”, Mr. Ackesten says.

“We are very happy that customers have shown an interest and trust in the HiVision control system. We will continue the close cooperation also in the future in order to gain the customer’s insight for further development”, says Martin Klyver, Sales and Product Business Manager, Hiab.

During the spring Hiab will continue HiVision deliveries in Europe and Japan.

Video link:  https://youtu.be/u8eYfMH2zaY

For more information, please contact:

Martin Klyver, Sales and Product Business Manager, Hiab; tel. +46 706 260 660, martin.klyver@hiab.com

Hanna-Kaisa Talvensaari, Senior Communications Manager, Hiab; tel. +358 40 758 1572,

hanna-kaisa.talvensaari@hiab.com

Hiab is the world’s leading provider of on-road load handling equipment. Customer satisfaction is the first priority for us. Around 3,000 professionals at Hiab work to provide high-performance products and services that meet customer needs globally. Our product range includes HIAB loader cranes, JONSERED recycling and forestry cranes, LOGLIFT forestry cranes, MOFFETT truck mounted forklifts and MULTILIFT demountables, as well as DEL, WALTCO and ZEPRO tail lifts. www.hiab.com

Hiab is part of Cargotec. Cargotec’s (Nasdaq Helsinki: CGCBV) sales in 2016 totalled approximately EUR 3.5 billion and it employs over 11,000 people. www.cargotec.com

Terex Ecotec are putting final plans in place ahead of their debut attendance at Recycling Activ Show, Germany, on 27^th – 29^th April.  The unique and dynamic trade fair pairing recycling aktiv and TiefbauLive will be held for the first time at Karlsruhe Trade Fair Centre as part of the event’s usual two-year cycle. A wide range of machines, systems and related services from the recycling and civil engineering sectors will be showcased for trade visitors, complete with hands-on live demonstrations.

Terex Ecotec will attend with their German dealer, Kölsch, and are excited to be demonstrating two of their environmental solutions, the TBG 620 High Speed Shredder and the TTS520-3 Trommel.

The TBG620 is a powerful, compact and flexible high speed industrial shredder that can be utilised for various shredding tasks in the field of waste wood.  Due to a multitude of possible settings for the shredding process, a variety of materials can be shredded onsite to the customer’s desired size.  Applications include shrubbery clippings, garden waste, compost material, organic waste, bark, trunk and root wood.

The TTS 520-3 is the second unit demonstrating and this range of mobile trommel screen systems are designed with productivity and end-user flexibility, ease of serviceability and low maintenance.  This unique and patented 3 fraction trommel is an efficient alternative to a star screen.  It is important to note that besides soil, this drum screen is also designed to screen a wide range of different material to include biomass, compost, gravel and waste.

Visit Terex Ecotec in R420, Outdoor Area, where you have the opportunity to see our environmental solutions up close and talk with our technical sales and applications specialists who will be on hand to offer their unique combination of experience and expertise.

To view our full environmental solutions log onto: www.terex.com/ecotec

The latest WOOD MARKETS annual survey of the “Top 40” Canadian and U.S. softwood lumber producers featured steady production growth in 2016 due to the cooperation of a strong U.S. market, plus growth in China. Amid an absence of any major mill acquisitions, almost all of the production gains came from existing mills. Of the top forty companies, only three in Canada and four in the U.S. recorded any production declines – a sign of a good year.

These and other industry highlights were recently released in the March 2017 issue of WOOD Markets Monthly International Report. The consultants at International WOOD MARKETS Group, Vancouver B.C. have conducted this survey annually since 1997.

The Canadian top 20 lumber companies saw their output rise from 19.6 billion bf in 2015 to 20.45 billion bf last year, while their share of national production slipped to 72% (from 74%). However, Canadian mill investments in the U.S. South are proving very strategic due to the ample timber supply in the region and high sawmilling margins (the result of low timber prices). As well, with U.S. duties being implemented on Canadian lumber shipments commencing in May, Canadian mill ownership in the U.S. is looking to be a very astute move. While there was no U.S. sawmill acquisition activity in 2016 by Canadian companies, the current collective U.S. mill count of West Fraser, Canfor and Interfor — 39 mills in all — allows their sawmill operations to enjoy excellent diversification.

Turning to the ranking of the top 20 Canadian firms, 12 were based in Western Canada and collectively produced 14.7 billion bf (52.0% of Canada’s shipments); this was higher by 390 million bf (+2.7%) than in 2015. Production for the top eight eastern Canadian producers was 5.7 billion bf (20.1% of Canada’s shipments), up 445 million bf (+8.4%) from the prior year.

The top five Canadian producers were as follows: West Fraser, Canfor, Tolko, Resolute and Western Forest Products. Of note, West Fraser surpassed Canfor as Canada’s top lumber producer — a position the former last held in 2011. Collectively, the top five raised their production to 12.3 billion bf (43.0% of Canadian lumber output), versus 12.0 billion bf (45.1%) in 2015. West Fraser inched up to lead spot, raising its output by 197 million bf (to 3.80 billion bf; +5.5%) at its 13 mills. Canfor dropped to second position with 3.79 billion bf and recorded a decline in output of 42 million bf (-1.1%). Tolko placed third, with its output falling by 63 million bf to 1.90 billion bf (-3.2%) as it cut production by half at its Quesnel, B.C. mill beginning in October 2016 (it also closed its Merritt, B.C. mill in Q1/17). Fourth-place Resolute gained 166 million bf (+9.9%) to reach a healthy 1.84 billion bf. Western Forest Products saw its output expand by 52 million bf (to 943 million bf).

In the U.S., total lumber shipments of the top 20 companies rose from 19.7 billion bf to 20.9 billion bf (+6.3%). The top 20 U.S. companies increased their output at a pace that was almost twice that of the entire U.S. industry and 50% more than that of the top 20 Canadian companies. The top 20 firms produced 63.9% of all U.S. softwood lumber shipments in 2016 (versus 62.1% in 2015). Despite the lack of export duties on Canadian lumber in 2016, the larger U.S. sawmills enjoyed excellent results. This growth indicates the rising confidence of the largest U.S. producers (including Canadian owners) in the housing market recovery and corresponding lumber consumption growth. The other apparent driver behind these growth strategies (on both sides of the border) was the need to improve cost-competitiveness by driving down costs and increasing efficiencies.

As In 2015, Weyerhaeuser retained its first-place U.S. position through a moderate increase of 230 million bf to 3.64 billion (+6.7%). Weyerhaeuser’s acquisition of Plum Creek Timber was the blockbuster deal of the year: it included two sawmills (with timberlands that are now the core assets of the combined companies with a total of 13 million acres of forests). Georgia-Pacific remained in second position with an estimated 2.5 billion bf (+6.9%). In third place was West Fraser, growing its production by 131 million bf to 2.14 billion bf (+6.5%) as a result of the rebuilt Quincy mill being in operation for the full year. Sierra Pacific was in fourth spot with production down 22 million bf to 2.01 billion bf (-11%). Interfor retained its fifth-place spot with production of 1.61 billion bf, a decrease of 101 million bf (-5.9%). The top five U.S. firms produced 11.9 billion bf, representing 36.3% of all U.S. lumber shipments, a slight (3.5%) increase from 2015.

Four of the largest North American softwood lumber producers have operations in both the U.S. and Canada. These publicly traded companies were positioned in both the top six in Canada and U.S. for last year (the percentage of their 2016 U.S. lumber production is shown in brackets): Weyerhaeuser (81%), West Fraser (36%), Canfor (26%) and Interfor (65%). “When comparing the earnings (EBITDA) amongst the four companies,” noted Russ Taylor, WOOD MARKETS’ President, “Weyerhaeuser’s above-average earnings since 2014 is noticeable (and has the highest percentage of U.S. mill assets) and this does lead to a timely question: why is the U.S. claiming that Canadian mills are subsidized when Weyerhaeuser is achieving such exceptional financial results with only 19% of its mill production in Canada?” The other three Canadian-based companies achieved lower earnings than Weyerhaeuser over the same three-year period and have more Canadian-based mills than Weyerhaeuser.

Peterson’s all-new 3310 Drum Chipper is a radical departure from traditional drum chippers.

With a 540 hp (402 kW) Caterpillar engine, the 3310 has the power to handle up to 24-inch (61 cm) diameter logs. The fully enclosed engine compartment keeps things clean, but easily serviced by large access doors on both sides of the machine.

The 3310’s transverse design allows for a much smaller operations deck, and the rotatable end load or optional top load spout design allows for trailers to be loaded in a variety of positions, depending on the demands of the job site.

Using the proven drum and knife design used on the larger 4300-series drum chippers, the 3310’s main components are robust and offer long life.

The 3310 is available with a four-pocket drum for typical biomass chips, or a eight-pocket drum for microchipping applications. The chips exit the machine from an innovative auger system which feeds an accelerator to increase payload density.

Designed for export markets, the 3310 can be easily transported in a high-cube, 40-foot container, significantly saving on overseas shipping expense.

Global trade of wood chips has seen spectacular development the past 15 years with a steady increase of about four percent annually (volumes year-over-year were up 11 of the past 14 years), according to the Wood Resource Quarterly (WRQ). In 2016, an estimated 35.6 million tons were shipped, predominantly to pulp mills in China and Japan, which can be compared to only 21 million tons 15 years ago. While trade of hardwood chips reached a record high in 2016, shipments of softwood chips have levelled out the past few years with 2016 volumes being slightly lower than the ten-year average.

Japan and China are by far the two dominant consumers of globally traded wood chips. Their dominance is particularly accentuated for hardwood chips, where they imported 84 percent of the world’s total imports in 2016, up from 75 percent in 2007. China has surpassed Japan as the largest importer of chips in the world, and with expansion of pulp capacity on the horizon in China, it is likely that the country will be the number one destination for wood chips for many years to come.

The major sources of hardwood chips for the two dominant importers include (in ranking order in the 4Q/16); Vietnam, Australia, Chile and South Africa. The biggest change on the supply side the past three years has been the sharp increases in hardwood chip shipments from Australia, South Africa, Brazil and Chile, while exports have fallen from Indonesia, Uruguay and Thailand.

About 30% of global chip trade occurs outside of the Pacific Rim with Finland, Sweden and Turkey being the major destinations. The Finnish forest industry has long been reliant on both logs and wood chips from neighbouring Russia and the Baltic States. In 2016, Finland imported almost 1.7 million tons of chips to its country’s pulp industry, of which a majority was softwood chips from Russia. Current import volumes are down about 25% from five years ago, partly because of increased availability of domestic chips and higher usage of pulplogs.

Source: Wood Resources International LLC, www.woodprices.com

The new mid-size G-Series forwarders’ engine, new control modules, simple CAN busses and streamlined electrical system create a balanced and strong combination.

John Deere’s G-Series mid-size forwarder models 1110G, 1210G and 1510G have the new 6.8L John Deere 6068 PowerTech Plus engine meeting the latest Stage 4/Final Tier 4 emissions regulations. The better coupling of the powerful diesel engine with the power train results in a clear improvement in performance. The control system and user interface on the G-Series forwarders have been further developed and improved to maintain high uptime. The TimberMatic F-16 control system features a configurable user interface, cruise control and inclination display. The new software version enables service personnel remote access to the machine. New MECA control modules, simple CAN busses and a streamlined electrical system improve the efficiency of machine functions.

We test new machine models for a minimum of 2,000 hours before starting serial production.

Steadfast traction and easy-to-use boom The Intelligent Boom Control makes boom handling more efficient and increases productivity by as much as one load per day. In the new 2.0 version of IBC, the precision of the grapple control has been improved, especially in long reaches. 80% of Nordic customers opt for IBC for their forwarder.

Adaptive driveline control is a new, unique feature available only for John Deere G-Series mid-size forwarders. The software-based control system improves the drivability and productivity of the G-Series forwarders. The operator selects the desired RPM setting (Eco, Normal, Power) for the operating conditions, and the system automatically adjusts the engine’s RPMs to correspond with the engine load and keeps the engine’s RPMs steady also during high loads.

During high-load situations, the new driveline control ensures that the diesel engine runs smoothly and uses the available maximum tractive force efficiently. Also the response of the drive pedal and frame steering have been improved with smart electronic filtering.

The John Deere 1110G is a general machine-class forwarder with an engine that has 6.6% more power and 4.1% more torque than its predecessor. The 1110G is also available with a short wheelbase. The shorter wheelbase has been achieved by moving the rear axle forward by 40 cm and thereby allowing the load space to remain unchanged. The machine’s stability remains good and its agility improves, which is beneficial particularly in thinnings. The John Deere 1210G forwarder engine has 7.6% more power and 7.8% more torque than the previous model. There are several load space alternatives with different widths for different uses. Optional Variable Load Space (VLS) consists of three special bunks with telescopic stakes that can be extended hydraulically. The headboard moves both horizontally and vertically and extends with the load stakes. The area of the VLS is 4.0-4.8 m2. The John Deere 1510G forwarder’s new engine increases the machine’s power by 5.1% and the torque by as much as 8.7%. The added power and tractive force increase the machine’s productivity. The 1510G is also more agile than the previous model because the slewing angle has increased from 42 to 44 degrees. Long bogie for soft terrain The John Deere 1210G and 1510G forwarders are also available in a long bogie version. The distance between the front and rear wheel hubs in the rear bogie has been increased to 1890 mm, i.e. 390 mm longer than in the standard model. The power train and turning radius are the same as with the standard HD portal bogie-equipped machine. The ground pressure of the rear chassis equipped with tracks is 14% smaller compared to an ordinary bogie axel.

The low ground pressure of the machine’s front and rear chassis make the machine an excellent choice for logging on soft terrain. The tracks are shallower and the depression is smaller. The long bogie functions well also on normal terrain and brings stability when navigating over obstacles in rocky terrain. Our machines are also known for the unique rotating and levelling cabin that improves the operator’s working conditions. It offers significant improvement both in the machine’s productivity and in operator comfort by reducing vibration by as much as 30-50% during operation.

Further information: Elina Suuriniemi John Deere Forestry Oy Tel. +358 400 466 476 SuuriniemiElina@JohnDeere.com