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Wood Products Prices in The U.S. 

16-30th June 2010

Report from North America


 New voluntary standard for imported veneer
The International Wood Products Association (IWPA) released the new voluntary ¡°Product Standard for Imported Rotary Cut Wood Veneer and Platforms.¡± This standard supersedes the ¡°Product Standard for Imported Wood Veneer and Platforms¡± from May 2000. The IWPA represents the North American imported wood products industry.

A key reason for updating the standard was that veneer faces have become much thinner. The new specifications establish minimum acceptable requirements for each grade made from various wood species, and reflect the current trend in the way veneers are being produced and used in veneer and plywood markets. It contains quality criteria and provisions for packing. Requirements are described for wood species, veneer types, grades and sizes, sanding and finishing. It is intended for voluntary use by suppliers of wood veneer products and platforms, North American buyers, distributors and architects.

The IWPA included references to the Lacey Act in the new standard to assure US consumers that the wood products are legally sourced, thereby increasing the market potential for imported wood. The standard is available from the IWPA online store at:
www.iwpawood.org/storeindex.cfm

US Senate passes legislation for national formaldehyde standards
The ¡°Formaldehyde Standards for Composite Wood Act¡± would establish national emission standards for formaldehyde in new composite wood products. The standards would follow the recently adopted California standards that apply to hardwood plywood, particleboard, MDF and any products containing these materials.

Voluntary formaldehyde emission standards already exist on a national level, but many imports of wood composites do not comply with the voluntary standards.
Under the proposed legislation, starting in January 2013, composite wood products sold in the US would have to meet a formaldehyde emission standards of about 0.09 parts per million. The limits will be stricter than the European and Japanese standards.

Third-party testing and certification will be required to ensure that products with formaldehyde comply with the national standards. The standards will be enforced for imported wood products.

The US wood products industry, environmental, health and labour groups voiced support for the new legislation. The US House of Representative still needs to vote on the legislation before it can come into effect.

Legally verified plywood from China
A Chinese plywood manufacturer, Chinese poplar farmers, a Malaysian timber producer and a UK wood products company have worked together to produce for the first time hardwood plywood in China that has been verified as 100% legal. The first shipment is destined for the UK, but the US is a key market for legally verified wood since the Lacey Act has banned any import and domestic trade in illegally harvested wood and wood products.

This plywood project in China was supported by The Forest Trust and funding came from the Timber Trade Action Plan, the UK Timber Trade Federation and the Rainforest Alliance SmartWood Program.

US imports of tropical lumber, hardwood moulding and flooring in April
While imports of most species of tropical lumber have been higher this year than in 2009, imports slowed in April. Imports of balsa lumber were down 28% compared to imports in January-April 2009. Mahogany, Sapeli and Acajou d¡¯Afrique imports were also lower than in the same period last year. Ipe lumber imports are at same levels as in 2009, albeit much lower than 2008 imports.

Hardwood moulding imports in April also remained at the low levels seen last year. Imports in January-April 2010 were US$56.4 million, -3% compared to the same period in 2009. Jatoba moulding imports from Brazil were US$7.8 million (-20%), while Cumaru remained steady at US$1.6 million. Supplies of Cumaru mouldings from Peru increased greatly to almost US$1 million from the beginning of the year. Both Ipe and Mahogany moulding imports were down by approximately one third compared to the same period last year.

US imports of hardwood flooring were also down in the period to April at US$4 million, -61% compared to the same period in 2009. The decline in hardwood flooring imports that began in 2006 appears to continue this year. All major supplying countries are affected, and among the top three (China, Brazil and Malaysia), China has seen the steepest drop in exports to the US.

Tropical lumber prices
US buyers of tropical lumber from countries in Africa that price primarily in Euro have seen a price decline because of the weak Euro. Prices of lumber sold in US dollars have remained stable. Overall, sales to the US market remain small. After a moderate upturn earlier this year markets appear to have deteriorated again.

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Abbreviations

LM       Loyale Merchant, a grade of log parcel  Cu.m         Cubic Metre
QS        Qualite Superieure    Koku         0.278 Cu.m or 120BF
CI          Choix Industriel                                                       FFR           French Franc
CE         Choix Economique                                                        SQ              Sawmill Quality
CS         Choix Supplimentaire      SSQ            Select Sawmill Quality
FOB      Free-on-Board     FAS            Sawnwood Grade First and
KD        Kiln Dry                               Second 
AD        Air Dry        WBP           Water and Boil Proof
Boule    A Log Sawn Through and Through MR              Moisture Resistant
              the boards from one log are bundled                      pc         per piece      
              together                      ea                each      
BB/CC  Grade B faced and Grade C backed MBF           1000 Board Feet          
              Plywood   MDF           Medium Density Fibreboard
BF        Board Foot F.CFA         CFA Franc        
Sq.Ft     Square Foot              Price has moved up or down

Source: ITTO'  Tropical Timber Market Report

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