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Wood Products Prices in The UK & Holland

01-15th January 2007

Report from the UK

CPET renews acceptance of five certification schemes 
The Central Point of Expertise on Timber (CPET) has renewed its approval of five certification schemes after a first review of the schemes. The move assures UK government departments that they are buying timber from responsible sources. Biodiversity Minister, Barry Gardiner, announced that the Canadian Standards Association (CSA), Forest Stewardship Council (FSC), Programme for the Endorsement of Forest Certification (PEFC) and Sustainable Forestry Initiative (SFI) would continue to be accepted as assurance of legally logged timber from sustainably managed forests while the Malaysian Timber Certification Council (MTCC) would continue to be accepted as assurance of legally logged timber.

Mr. Gardiner was pleased that the rigorous review saw schemes responding positively to negative findings and making significant improvements to their requirements. He said the government was confident that the systems in place were robust and that these schemes provided credible assurance of responsible timber procurement. The schemes will be reviewed again in 2008. 


ENGOs slam CPET on renewal decision 
Environmental groups including WWF, Greenpeace and FERN, criticized CPET' decision to renew the approval of CSA, PEFC and SFI certified timber in public procurements. The groups said the government was guilty of green-washing bad logging practices and directly contributing to the destruction of ancient forests.

The groups, which are all members and supporters of the FSC, said that several schemes under the PEFC umbrella still allowed large scale, unsustainable logging in high biodiversity areas and inadequate tracking of timber from the forest to the point of sale. Environmentalists were particularly concerned about the acceptance of the Australian Forest Standard (AFS) and the American Sustainable Forest Initiative (SFI), both of which are recognized under the PEFC scheme. The groups added that, in accepting the MTCC scheme, the UK government clearly undermined the current negotiations between the EU and Malaysia to develop a voluntary partnership agreement (VPA) to control illegal logging.

House prices to remain bullish in the short term
UK house prices rose 10.5% during 2006 according to the Nationwide Building Society (NBS). Growth in property prices continued to be strong in December rising by 1.2%. NBS said that few sellers were coming to the market and, as a result, price growth was unlikely to oderate in the short term. The British Woodworking Federation has reported that timber is once again becoming of more interest to architects and specifiers, and recommended to the trade to continue to promote timber as a "green" material.

Manufacturing could slow in 2007 after an 8-year high
UK manufacturing output will probably slow in 2007 following increased production and exports in 2006, according to the Engineering Employers Federation. EEF said productivity outpaced the rest of the economy and exports hit an eight-year high last year. Meanwhile, MFI is poised to lose its crown as UK top furniture retailer after more than twenty years. Argos is expected to take the top spot with DFS and Ikea also ahead of MFI. Furniture group Home-Style is in takeover talks with Steinhoff, a South African firm, which operates Harveys, Benson and the Raylon brands.

Zero-carbon homes could be a boost for timber industry
The UK government and home builders are looking at ways of building all new homes to zero-carbon performance standards with the aim to tackle climate change, in a summit organized by the Home Builders Federation (HBF). Housing and Planning Minister, Yvette Cooper, wants new properties to meet these targets within 10 years, but developers say they cannot achieve this alone. The housing summit, attended by suppliers, utility companies, regulators, local government and environmental groups, marks the most ambitious attempt
by the home building industry to deliver higher environmental standards.

The initiative could be a boost for the timber industry. The number of households in the UK is forecast to increase 23% over the next 20 years. If housing supply remains at 2005 levels, there would be a shortage of 50,000 homes each year across England, according to the Office of the Deputy Prime Minister.

Chancellor Gordon Brown said in his pre-Budget statement last December that it was time to set a long-term framework for curbing emissions from houses, which were about 30% of all emissions. He pledged that within 10 years, every new home would be a zero-carbon home. UK would be the first country ever to make this commitment. Communities and Local Government, Secretary, Ruth Kelly, later announced a consultation on a challenging package of proposed measures to ensure that all new homes would be carbon zero by 2016.
 


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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