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Blog
July 5, 2022 / July 5, 2022 by Panu Anttila
July 05, 2022. – Plywood buyers and sellers have been busy this year, once again. The global plywood market is inter-connected, and the supply/demand changes somewhere impact all continents. We look at things from a company perspective, but we are all part of a bigger network. When entering a holiday season, it is nice to […]
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June 17, 2022 / June 17, 2022 by Panu Anttila
June 17, 2022. – I guess all of us have noticed how gasoline, electricity, and food prices have increased lately. At the same time, our eyes have opened to see how massive the Russian oil exports are. And even more dramatically, how big wheat exporters both Ukraine and Russia are. If a commodity gets expensive […]
June 3, 2022 / June 10, 2022 by Panu Anttila
June 3, 2022. – There are different routes between plywood producers and end-users. With some industries and customers, the route is direct from the mill to mill. In some industries, the chain may consist of importers, wholesalers, specialized dealers, and subcontractors. Typically, all the players in the chain keep a buffer stock to ensure continuous […]
May 20, 2022 / June 10, 2022 by Panu Anttila
May 20, 2022. – In 2011 the hardwood plywood price delivered to the German border was 539 €/m3. Eight years later, in 2019, the price was the same 539 €/m3. Inbetween 2011 and 2019 the highest annual average was 583 €/m3 in 2014. In other words, the 2010s was a flat decade for plywood prices. […]
May 6, 2022 / July 9, 2024 by Panu Anttila
May 6, 2022. – The hardest shock effect in the plywood market has passed and corrective measures are in process. Companies have had no other choice but to keep calm and adapt to the situation. However, as the Russian share in birch plywood is huge, the second wave is probably approaching. Russia will not disappear […]
April 22, 2022 / July 9, 2024 by Panu Anttila
April 22, 2022. – The famous quote by the American author Mark Twain says “Buy land, they’re not making it anymore.”. Every time I hear it, which is in a few years’ intervals, I think about how the quote fits the world today. In 2022, it fits well. The land is the platform to build […]
April 8, 2022 / July 9, 2024 by Panu Anttila
April 8, 2022. – While the western trade routes fade away, the Russian authorities tell that exports will be re-directed to Asian markets. It gives a feeling like the Asians are standing still without materials, and will quickly start buying Russian products once they get the opportunity. That is hardly the case. Business deals are […]
March 25, 2022 / July 9, 2024 by Panu Anttila
March 25, 2022. – The birch plywood buyers are in big trouble. I bet that nothing this quick and drastic has ever happened on the supply side. In 2021, Russia and Belarussia exported together 3 Mm3 of birch plywood in round figures. At the same time, the European producers’ exports were 1 Mm3. European producers […]
March 11, 2022 / March 11, 2022 by Panu Anttila
March 11, 2022. – In 2021, Russia exported 2,758,393 m3 of birch plywood. In 2022, it will be less. Companies that buy and further process plywood are mapping different options to overcome the inevitable shortage. The list looks like this: Alternative suppliers Alternative plywood types Alternative wood panels Alternative other materials Change of product design/construction […]
February 25, 2022 / March 11, 2022 by Panu Anttila
February 25, 2022. – Yesterday a war inflated in Ukraine. That is very unfortunate. Business and economy feel secondary in situations where people are losing lives and fleeing from their homes. In any case, this crisis will have diverse implications for the world economy, not to mention the diplomatic climate. If the situation has been […]
February 11, 2022 / February 11, 2022 by Panu Anttila
February 11, 2022. – The Winter Olympic Games are currently being held in China. It is great to see strong and skilled sportswomen and men competing. On average the Olympic athletes are in their mid-twenties. This year the most experienced and oldest athlete is the German speed skater Claudia Pechstein, 49. If the western world […]
January 28, 2022 / January 28, 2022 by Panu Anttila
January 28, 2022 – This week companies start to unfold the 2021 results. It was an unusual year, and so will also be some of the annual results. When a customer orders three truckloads of plywood and gets only two, the price has no other option than go up. In the first half of 2021, […]
January 14, 2022 / February 1, 2022 by Panu Anttila
January 14, 2022. – Do you remember a year ago how the wood panel demand storm was building up? At first, inquiries sneaked in softly. Soon they got bigger and bigger and exceeded everyone’s capabilities to deliver. The hit sentences of spring 2021 were: “When is my order coming?” and “There has been a delay.” […]
December 17, 2021 / February 1, 2022 by Panu Anttila
December 17, 2021. – If you got today an idea to build a plywood mill, where would you put it? 100 million dollars are burning your pockets, and you want to pick the best plywood production location in the world. Your success will be measured by the return on investment (ROI) over a 30 year […]
December 3, 2021 / February 1, 2022 by Panu Anttila
December 3, 2021. – Yesterday evening I got an email from my electricity seller. The message said that the company will stop delivering electricity after Friday. That’s today. It is -10°C outside and the house will freeze in hours without electricity. The company is a trader. It buys electricity from the open market, and sells […]
November 19, 2021 / February 1, 2022 by Panu Anttila
November 19, 2021. – When discussing with plywood experts everybody says how difficult it is to predict the near future. The market factors are various from rising costs to log shortage, and anti-dumping to crazy freight prices. The normal time perspective of the wood panel business is in months, quarters, and years. Company strategies are […]
November 5, 2021 / February 1, 2022 by Panu Anttila
November 5, 2021. – During this week countries have discussed mitigating actions in the Glasgow Climate Change Conference. Decisions and promises have been made, but the reality depends on the country-level actions. At least as important are voluntary actions of individual companies and people. Companies want to differentiate from competitors, and green values offer one […]
October 22, 2021 / February 1, 2022 by Panu Anttila
October 22, 2021. – Long gone are the days of annual plywood sales contracts with fixed prices. The recent volatile market conditions have shrunk the contract periods shorter and shorter. For long-term customers, it doesn’t make sense to agree on the terms for each container/trailer separately. Long contracts take more time to agree, but during […]
October 8, 2021 / January 27, 2022 by Panu Anttila
October 08, 2021. – Microchips and wood panels got a new friend in September when electricity joined the club of soaring prices. There are several short-term reasons for the increased prices, but also the long-term impact of the transition to greener energy sources. For the manufacturing industries, like plywood, electricity price is a significant cost […]
September 24, 2021 / February 1, 2022 by Panu Anttila
September 24, 2021. – During this week my house has been a construction site. Together with a heating system change, we arrange some new rooms in the basement. The “crew” consists of a plumber, an electrician, and “Bob the Builder”. The building and installation work has gone well, but even one week only is long […]
September 10, 2021 / February 1, 2022 by Panu Anttila
September 10, 2021. – In 1979 an American academic Michael E. Porter introduced his Five Forces Framework on business competition. According to the theory, companies face threats from substitute products, current competitors, and new entrants. In addition to the three threats, companies have to deal with bargaining power of customers, and suppliers. On mature markets […]
August 27, 2021 / February 1, 2022 by Panu Anttila
August 27, 2021. – According to reinsurance company Swiss Re, the global insured losses totalled 36 billion euros during the first half of 2021. Swiss Re estimates that a major part of the losses (34 billion euros) were because of extreme weather. In total, the losses were 65 billion euros, but all damages were not […]
August 13, 2021 / February 1, 2022 by Panu Anttila
August 13, 2021. – According to Wikipedia, business cycles are intervals of expansion followed by recession in economic activity. Within the last 12 months, we have had expansion, that is for sure. Fortunately, there are no signs of recession, but for long-term business, less steep ups and downs would be appreciated. Turns are happening fast. […]
July 30, 2021 / February 1, 2022 by Panu Anttila
July 30, 2021. – This year has been busy for people in the wood business. The good demand is a great thing. However, it also brings along additional issues, problems and extra work. These issues are mainly around availability, and often they are hard to solve. Asking for more money while limiting the volume does […]
