Summary
• Many Quebec sawmills have shut down.
• UK softwood exports plunged to 10,935m³ in the first half of 2008.
• Quebec has achieved Eurocode 5 and can CE mark.
• Hardwood suppliers are targeting the UK.
Now could be a good time to buy a sawmill in Quebec.
When TTJ caught up with Quebec Wood Export Bureau softwood manager Glen Meehan in London recently, Mr Meehan admitted that, if he had the money, he would be the first in line.
The reasoning is that demand in the depressed sawmilling sector will return sooner or later, and there will be less competition because of the number of mills which have closed. “It will be great for those mills that do stay in business,” said Mr Meehan. “Eventually, the demand will come back.”
In one area of Quebec, only five of 23 mills are left. And if mill machinery is not used it will rust in the wet, humid environment of Quebec.
“There are many factors in the market now that have caused this. The problem is pricing is really down and the currency is not helping. But there are still some large amounts of timber being used,” said Mr Meehan.
Improvement
He said sharp price cutting by German and Swedish mills had exacerbated the problem.“But the situation should rectify. We’re starting to get some calls, so we think demand is returning.”
He said Norwegian importers had been having trouble sourcing specifications and were planning a visit to Quebec to discuss their requirements.
Promoting wood in non-residential construction is a focus for the industry as it tries to widen its reach beyond the suffering housing market. “There are mills selling large volumes to the Middle East at the moment,” said Mr Meehan.
One niche in this lucrative market is internal doors. “You have these amazing buildings being built at the moment that are about 70 storeys high. That is a lot of doors in a small land area.”
Other export business includes concrete formwork and framing in the UAE.
The softwood carcassing export trade with the UK, so strong 18 months ago, has dropped off the radar. In the first half of 2008, Quebec’s UK volumes dropped to 10,935m³ from 80,608m³ the year before.
But Guy Careau, president of Quebec softwood sawmiller Careau Bois, said he would be surprised if any carcassing was now UK-bound. Mr Careau came to a TTF softwood meeting last year as part of a QWEB delegation to woo the UK softwood trade with competitive prices. At the time he was regularly shipping about 70 containers to Liverpool, but now it is zero.
“We could be in the UK market at any time we want but there is no interest from the UK at the moment,” he said. “That’s just the way it goes. Sometimes we are in and sometimes we are out. It’s currency exchange that drives that. But, hopefully, one day we will be back, it’s an easy market sector for us and we like selling wood to the UK.”
Careau Bois is now doing a lot of business in the Middle East, with the likes of Egypt, Israel and Dubai.
Niche markets
Doncaster-based Davidson Timber, Tembec’s UK agent, has a good inside track on the Canadian situation. “When you look at the numbers that came out of Quebec in the first half, we were a big chunk of that,” said Davidson managing director Chris Skelton. “I doubt that will be replicated in the second half. Canadian CLS will drift away. But the niche markets should stay and hold up.”
These niche markets include eastern white pine, cedar and Douglas fir.
“Our customers are wanting more regular supply rather than break bulk supply from Canada. The Canadian business is a big part of what we do, it’s just missing at the moment.”
So, UK importers of softwood construction timber are now more focused on the likes of Sweden and Germany. But QWEB is still cultivating long-term partnerships between the two countries and points to progress made in securing Eurocode 5 and putting systems in place for all mills to CE mark products.
With the largest forest cover of all the Canadian provinces, (84.6 million ha (56%) of its land mass, an annual harvest of 35 million m³, and the fact that more than 60% of QWEB members are exporters, the expectation is that the bulk trade will be resumed, at some point.
But there is interest in the UK from several Quebec hardwood companies, who are actively looking at boosting their sales. Stephanie Vandystadt, sales manager at DV Hardwoods, said the company was looking to put a special focus on the UK market in the year ahead.
The sawmiller, which produces 40 million board feet a year, has supplied the UK for many years, with about 20 containers of framing lumber for the furniture industry being exported annually. Its red oak is also used to make coffins.
DV Hardwoods is primarily a maple and birch producer but also offers a range of other hardwood timbers. The company has been positioning itself for the future by closing three older plants and building a single C$19m purpose-built super mill for optimised production.
Ms Vandystadt said DV was looking at the routes to UK market and was open-minded about working with merchants and importers, as well as selling direct to manufacturers. DV expects to be Forest Stewardship Council-certified shortly, which should give it additional help selling products in the UK.
Hardwood flooring
Another company interested in the UK is Model Hardwood Inc, a pre-finished hardwood flooring
supplier, which sources all its flooring from sister company PG Hardwood Flooring Inc. The group, which also includes Plancher Beauceville, achieved sales of about 16 million board feet in 2007, of which 6 million ft² were for Model alone.
Karine Grandmont, the group’s marketing manager, said it wanted to sell to the UK again and would like to hear from potential distributors and retailers. It has already registered on a UK product directory.
Model’s FSC-certified “Unique Collection” focuses on vibrant colours, while the M by Model Collection features rich tones and metallic textures. “Model flooring is ideal for consumers in search of new trends and businesses looking for distinction and originality,” said Ms Grandmont.
