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The COP26 Deforestation Pledge Will Not Cut Global Lumber Supply Please mention the Source


The COP26 Deforestation Pledge Will Not Cut Global Lumber Supply Please mention the Source

IndexBox has just published a new report: ‘World – Industrial Roundwood – Market Analysis, Forecast, Size, Trends and Insights‘. Here is a summary of the report’s key findings.

Over 120 countries signed the Glasgow Leaders’ Declaration on Forests and Land Use, a voluntary commitment to halt deforestation. The world’s top lumber suppliers, such as Canada, Russia and Sweden, are among the signatories, as well as those countries with the highest rates of tropical forest loss – Brazil and Indonesia. Based on experience from a similar 2014 agreement signed in New York, the obligations will not force suppliers to significantly slow their pace of deforestation but rather instigate an increase in planting new trees to replace those cut-down.

Key Trends and Insights

In November 2021, more than 100 countries signed the Glasgow Leaders’ Declaration on Forests and Land Use, obligating them to halve deforestation by 2020 and cease it altogether by 2030. The endorsers account for about 90% of global tree cover, and 28 out of these countries are obligated to stop clearing tropical forests to produce palm oil, cacao and soy. The COP26 obligations permit the continuation of clearing forests as long as new trees are planted to replace those cut down.

The declaration is accompanied by $19.2B in financing and is legally non-binding because it was approved outside the UN Framework Convention on Climate Change. The world’s largest lumber suppliers, such as Canada, Russia and Sweden, are among the signatories, as well as those countries where tropical forests are located, namely Brazil and Indonesia. Malaysia, Laos, Cambodia, Myanmar and Paraguay, which are among the countries with the highest deforestation rates, did not sign the Glasgow Declaration.

According to Global Forest Watch, in 2020, the global landmass covered by forests decreased by 25.8M Hectares. The most significant decrease in forest mass was recorded in Russia (5.44M ha), Brazil (3.29M ha), Canada (1.20M ha), the US (1.97M ha) and Indonesia (962K ha). As a consequence of Covid restrictions, global trade in industrial round wood decreased from $17B to $15B, dropping in real terms from 233 to 205 cubic meters.

Theoretically, the Glasgow Declaration could have a severe effect on the global lumber market. If it were legally binding, the critical lumber supplying countries would decrease logging activities, which would lead to a deficit in lumber around the world. The resulting effects of the preceding 2014 New York declaration prove that such agreements do not slow down the pace of deforestation in signatory countries, for example, Indonesia. It’s more likely that governments will increase efforts to plant new trees to comply with the agreement and only insignificantly decrease logging. The high demand for lumber in the construction industry will decrease prospects of reining in the pace of deforestation worldwide.

Global Industrial Roundwood Imports

In 2020, overseas purchases of industrial roundwood decreased by -12% to 205M cubic meters for the first time since 2017, thus ending a two-year rising trend. In value terms, industrial roundwood imports fell $16.9B to $14.8B (IndexBox estimates) last year.

In 2020, China (92M cubic meters) represented the leading importer of industrial roundwood, committing 45% of total imports. Austria (21M cubic meters) ranks second in total imports with a 10% share, followed by Sweden (6.2%). Germany (9.1M cubic meters), Finland (7.1M cubic meters), Japan (6.6M cubic meters), Belgium (5.7M cubic meters), India (4.4M cubic meters), South Korea (4.4M cubic meters), Poland (3.4M cubic meters) and Canada (3.2M cubic meters) took a relatively small share of total imports.

Imports into China increased at an average annual rate of +4.2% from 2010 to 2020. At the same time, Belgium (+9.5%), Austria (+4.8%), Sweden (+1.9%) and India (+1.3%) also displayed positive paces of growth. Moreover, Belgium emerged as the fastest-growing roundwood importer globally, with a CAGR of +9.5% from 2010-2020. Poland and Germany experienced relatively flat trend patterns. By contrast, Finland (-2.8%), Canada (-3.1%), Japan (-5.5%) and South Korea (-8.4%) illustrated downward trends over the same period.

In value terms, China ($8.4B) constitutes the largest market for imported industrial roundwood worldwide, comprising 57% of global imports. The second position in the ranking was occupied by Austria ($713M), with a 4.8% share of global imports, and it was followed by India, with a 4.4% share.

The average industrial roundwood import price stood at $72 per cubic meter in 2020, flattening from the previous year. Prices varied noticeably by the country of destination; the country with the highest price was India ($147 per cubic meter), while Austria ($35 per cubic meter) was amongst the lowest. From 2010 to 2020, the most notable rate of growth in terms of prices was attained by South Korea, while the other global leaders experienced more modest paces of growth.

World’s Largest Industrial Roundwood Suppliers

In 2020, New Zealand (40M cubic meters), distantly followed by the Czech Republic (21M cubic meters), Germany (20M cubic meters), the U.S. (18M cubic meters), Russia (15M cubic meters), and Uruguay (12M cubic meters) represented the leading exporters of industrial roundwood, together constituting 64% of total exports. Australia (7.4M cubic meters), Norway (6.8M cubic meters), Canada (4.4M cubic meters), France (4.2M cubic meters), Latvia (4M cubic meters), Papua New Guinea (3.9M cubic meters), and Belarus (3.6M cubic meters) followed a long way behind the leaders.

In value terms, New Zealand ($2B), the U.S. ($1.6B) and Russia ($1B) were the countries with the highest levels of exports in 2020, together accounting for 40% of global exports. Germany, the Czech Republic, Uruguay, Papua New Guinea, Australia, Canada, France, Norway, Latvia and Belarus lagged somewhat behind, together accounting for a further 39%.

Source: IndexBox Platform 


Indian Polypropylene Exports Swell Driven by Booming Demand from China

IndexBox has just published a new report: ‘India – Polypropylene In Primary Forms – Market Analysis, Forecast, Size, Trends And Insights’. Here is a summary of the report’s key findings.

Indian exports of primary polypropylene skyrocketed from 518K tonnes in 2019 to 794K tonnes in 2020 due to robust supplies to China, Turkey and Viet Nam. In value terms, exports reached $673M, rising by +22.5% y-o-y in 2020. China remains the largest importer, accounting for 44% of total polypropylene exports from India. Turkey and Viet Nam were distantly following China. Last year, China boosted its purchases from 130K tonnes in 2019 to 352K tonnes in 2020, while Turkey saw a 12%-growth. Viet Nam has also significantly increased the imports from India. In 2020, the average export price for primary polypropylene from India amounted to $847 per tonne, dropping by -20.1% y-o-y.

Indian Polypropylene Exports by Country

India’s polypropylene exports surged from 518K tonnes in 2019 to 794K tonnes in 2020. In value terms, polypropylene in primary forms exports soared to $673M (IndexBox estimates), rising by +22.5% y-o-y in 2020.

China (352K tonnes) was the main destination for polypropylene in primary forms exports from India, with a 44% share of total exports. Moreover, polypropylene in primary forms exports to China exceeded the volume sent to the second major destination, Turkey (102K tonnes), threefold. The third position in this ranking was occupied by Viet Nam (61K tonnes), with a 7.7% share.

China increased its imports from 130K tonnes in 2019 to 352K tonnes in 2020. Turkish purchases grew from 90K tonnes to 102K tonnes over the same period. Exports to Viet Nam rose from 37K tonnes in 2019 to 61K tonnes in 2020.

In value terms, China ($279M) remains the key foreign market for polypropylene in primary forms exports from India, comprising 41% of total exports. The second position in the ranking was occupied by Turkey ($90M), with a 13% share of total exports. It was followed by Viet Nam, with a 7.8% share.

In 2020, the average polypropylene in primary forms export price amounted to $847 per tonne, shrinking by -20.1% against the previous year. Average prices varied noticeably for the major external markets. In 2020, the countries with the highest prices were Nepal ($935 per tonne) and Italy ($909 per tonne), while the average price for exports to China ($791 per tonne) and Portugal ($860 per tonne) were amongst the lowest. In 2020, the most notable growth rate in terms of prices was recorded for supplies to Bangladesh, while the prices for the other major destinations experienced a decline.

Source: IndexBox Platform


Vietnam Drives Out China from the American Wooden Kitchen Furniture Market

IndexBox has just published a new report: ‘U.S. – Wooden Furniture Of A Kind Used In The Kitchen – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

In 2020, American imports of wooden furniture for kitchens soared by +22% y-o-y to 52M units or $1.9B in value terms. Supplies from Vietnam and Malaysia offset the dramatic drop in imports from China after the tariffs on Chinese products increased. Among other countries, Indonesia, Taiwan, Thailand and Mexico saw the highest spikes in wooden kitchen furniture exports to the U.S. The average wooden kitchen furniture import price dropped by -18.1% against the previous year. 

American Imports of Wooden Kitchen Furniture by Country

In 2020, the amount of wooden furniture for kitchens imported into the U.S. surged to 52M units, increasing by 22% compared with 2019. In value terms, wooden kitchen furniture imports totaled $1.9B in 2020 (IndexBox estimates).

In 2020, Vietnam drove out China from the leading position in the American imports and became the largest exporter of wood kitchen furniture to the U.S. Over the last year, the supplies from Vietnam rose from $224M to $487M. Malaysia occupied second place in the list of top suppliers to America, boosting its exports to the U.S. from $148M in 2019 to $415M in 2020. Indonesia recorded the highest spike in kitchen furniture exports to the U.S. In 2020, Indonesia ramped up the supplies from $13M to $103M. Among other countries, Taiwan, Thailand and Mexico featured the most prominent export growths of kitchen furniture to the U.S. The purchases from China fall dramatically from $831M to $132M owing to raising tariffs on Chinese imports.

Vietnam (16M units), Malaysia (11M units) and Canada (6.1M units) were the main suppliers of wooden kitchen furniture imports to the U.S., with a combined 64% share of total imports. China, Indonesia, Mexico, Italy, Taiwan and Thailand lagged somewhat behind, together comprising a further 27%.

In value terms, the largest wooden kitchen furniture suppliers to the U.S. were Vietnam ($487M), Malaysia ($415M) and Canada ($301M), together comprising 62% of total imports. China, Italy, Indonesia, Mexico, Thailand and Taiwan lagged somewhat behind, together comprising a further 28%.

The average wooden kitchen furniture import price stood at $37 per unit in 2020, with a decrease of -18.1% against the previous year. Prices varied noticeably by the country of origin; the country with the highest price was Italy, while the price for Taiwan was amongst the lowest.

Source: IndexBox Platform

chromium oxide

Powder Chromium Oxide to see a Significant Consumption in the Near Future

The demand for chromium oxide will witness consistent expansion on account of its rising usage across heavy-duty applications. They are mainly inorganic pigments and record a higher requirement in paints, roofing & ceramic tiles, architectural coatings, and plastics. The materials are incorporated in the generation of high temperature as well as abrasion-resistant refractory bricks for use in glass and fiberglass. They are also employed as green pigments for coloring building materials and plastics,

Chromium oxide compounds act as major ingredients of the refractories and brake linings. They are also used as raw materials in the ceramic industries for the manufacturing of chromium metal and mixed metal oxides. The product is also utilized to stain slips and bodies along with producing red and orange glasses to filling hollows in horizontally fired tiles. Furthermore, high purity grade chrome oxide is marking its presence in the production of chromium metal.

Reports suggest that the global chromium oxide market size could reach an exponential CAGR through 2027.

The adoption of powder chromium oxide structures will increase with their excessive use as pigments. They possess considerable stability and are hence utilized in the making of paints, inks, dyes and glasses. They are also the colorant constituents in chrome and institutional green colors. Besides, the powdered compound offers ease of availability as it can be easily packaged in jars, pails, drums, multiply paper bags, bulk bags, and fiberboard containers.

Pigment grade chromium oxide components are pegged to record a considerable demand in the next few years considering their increasing applications in the paints industry. They can be accessed in the form of chrome yellow, green, red, orange as well as tin pink. As they possess high-temperature resistance and sunlight fastness, they are used to generate the color in various minerals and gemstones. These substances are also known to be relatively stable in air and are unaffected by acids as well as alkalis and sulfur dioxide & hydrogen.

The application of chromium oxide compounds across the paintings and coatings sector is likely to commendably stir. This can be attributed to the increasing adoption of chrome oxide green to offer excellent quality and firmness of coloring. It is highly preferred in the coating of various cosmetics and is used to impart a greenish color for painting glass.

Speaking of which, global chromium oxide manufacturers are keen on bringing innovations and modifications in their existing offerings to increase their footprint across the world. These firms are focusing on marketing initiatives such as mergers, partnerships, and acquisitions to sustain the inclining competition. To state an instance, in July 2018, Sun Chemical along with its parent firm, DIC Corporation, acquired the high-purity iron oxides portfolio of Cathay Industries, which is based in Indiana, U.S.

The present COVID-19 outbreak drew a comparatively declining effect on the production of chromium oxide components owing to the regulation of lockdown policies in the initial months of 2020. However, the gradual easing of the trade barriers and the resumption of the paints, coatings, dyes, and ink industries is expected to bring positive impetus to the product demand.

Materials Handling Company Tri-Lift, NC Earns MVP Award

Thanks to the company’s ongoing success in 2018, full-service materials handling equipment and warehouse products distributor Tri-Lift NC was awarded Most Valuable Partner Award for 2018 by the Material Handling Equipment Distributors Association (MHEDA). MHEDA serves as the only national trade association focused on improving  the proficiency of independent material handling distributors. To qualify for the coveted recognition, recipients must successfully complete categorical requirements in the following areas:

-Industry Advocacy
-Customer Service & Safety Practices
-Business Networking
-Continuing Education
-Business Best Practices

“We are honored and proud to have earned this distinction from an association like MHEDA” said Bob Bond, President, Tri-Lift NC, Inc. Bond added “all of our employees work hard daily to ensure not only customer satisfaction, but create efficiencies to make Tri-Lift NC, Inc. more responsive and productive and we thank all of our great customers we have worked with in 2018 to make this possible.”

Additionally, recipients must meet said criteria with “less than 10% of the association’s membership earning the award” and provide evidence of their business commitments to all participants from customers to suppliers.

“MHEDA MVP winners are among an elite group of distributors that have reached a pinnacle of the best service to customers combined with industry leading business practices,” said Doug Carson, 2018 MHEDA Chairman of the Board and VP of Marketing & Sales for Fallsway Equipment Company in Akron, OH.

Source: EIN Presswire