February/March 2016

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F2M Market Watch

In This Issue

9 Predictions for Global Wood Consuming Industries in 2016

Siting a New Biofuel or Biochemical Facility? Maximize Your Resource Study

Three Essentials Elements of a Quality Biomass Feedstock Price Index

FAO Report Highlights Resurgence in Global Wood Production

Tree Harvesting and its Effect on Soil Nutrients

How do Rising and Falling Prices Affect Wood Supply Chain Cost Components?

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Economic Outlook

		9 Predictions for Global Wood Consuming Industries in 2016 By Pete Stewart Most of the growth in demand for pulp and paper products will come from the non-Western world. Demand in both North America and Europe will be flat to lower, while Africa, Asia Pacific, Latin America and the Middle East will all see upticks. Overall, the strongest growth categories will be for market pulp, packaging, tissue and towels and specialties. Continue reading → ...ť

		Siting a Biofuel or Biochemical Facility? Maximize Your Resource Study By Stan Parton Proper site selection of a wood-consuming biofuels or biochemicals manufacturing facility is imperative for its long-term success. Prior to siting a new facility, or even deciding whether to repurpose an existing facility, due diligence requires that the project developer seek verification that adequate feedstock can be procured from the supply region for the life of a project. This verification is a complex process. The only way to hedge against uncertainty with any degree of confidence is with the fact-based data and reliable forecasts of a comprehensive resource study. Continue reading → ...ť

		Forest Biomass Receives Carbon-Neutral Classification in Senate Amendment By John Greene The cause for biomass as a carbon-neutral renewable resource has received an important endorsement. Last week, Senators Susan Collins (R-ME), Amy Klobuchar (D-MN) and Angus King (I-ME) received unanimous consent for their sponsored amendment to the Senate energy bill that affirms the carbon benefits of biomass. The Senate is currently debating a broad energy policy bill, the first in almost a decade, which will have important implications for biomass as an energy source in the future. Continue reading → ...ť

		Three Essentials Elements of a Quality Biomass Feedstock Price Index By Stan Parton For any manufacturing process that uses biomass as primary feedstock, the operating cost with the highest variability will be the actual cost of that feedstock. This also holds true for manufacturers of biofuels or biochemicals that are derived from wood raw materials. Driven by market supply and demand that includes fluctuations in cost drivers such as stumpage price, diesel price and CPI, feedstock costs can vary significantly over time. Continue reading → ...ť

		FAO Report Highlights Resurgence in Global Wood Production By John Greene Last month, we covered the comprehensive Global Forest Resources Assessments (FRA) for 2015 released by The Food & Agriculture Organization of the United Nations (FAO), which provides a consistent overview of the world's forests and how they are changing at five- to ten-year intervals. FAO also recently released new data through 2014 noting that there has been a resurgence in global wood production. Continue reading → ...ť

		Tree Harvesting and its Effect on Soil Nutrients By Jay Engle We are currently experiencing a global resurgence in wood production, and as biomass derived from forest residues continues to become more popular as an alternative and renewable source of energy, questions regarding forest sustainability and land management inevitably become the focus of many discussions. And rightfully so. While a forest is so much more than its available timber, an important-and often overlooked-aspect of responsible forest stewardship concerns maintaining overall land quality. Continue reading →...ť

		How do Rising and Falling Prices Affect Wood Supply Chain Cost Components? By Pete Coutu Navigating the dynamic wood supply market in North America can be challenging. As supply and demand factors constantly affect prices on a regional-and even countywide-basis, price volatility due to supply and demand exists independent of supply chain efficiency efforts. This means that any realized cost benefit is usually passed between members of the wood supply chain. It's an ever-changing relationship: generally speaking, when price goes up, the supply side benefits; when price goes down, the consumption side benefits. Continue reading →...ť

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