PefiectStorm

(Continuedfrom page I I) formaldehyde (UF) and melamine urea formaldehyde (MUF) resins used as binders for PB and MDF have been screaming upwards for the last year. UF resin prices increased an average of 30Vo in fourth quarter 2007 alone. These price increases stem from shortfalls in methanol supply and an increase in the demand for urea, two of the primary feedstock chemicals used to produce PB and MDF resins.

For Canadian producers, the situation is even worse. Recent rate cuts by the U.S. Federal Reserve will likely keep the U.S. and Canadian dollars at or near parity for the foreseeable future. Worst case for Canadian producers is that the loonie continues to strengthen against the greenback. Over the last year, the loonie's assent has essentially tacked on an additional l57o to 2O7o to bottom-line production costs for Canadian PB and MDF mills (Table 1).

As incredible as it might seem, another major storm on the horizon will fuel this already desperate situa- tion into a full-blown conflagration.

On April 26,2007, the California Air Resources Board (CARB) approved wide-sweeping restrictions on formaldehyde emissions from woodbased panels, including hardwood plywood, PB and MDF. In order to meet the new standards, producers who have not already done so will be required to either install equipment to control air emissions or cgase operating altogether. According to a source at one mill, a capital outlay of approximately $3 million will be required to modify their process. Due to the high cost of compliance, it is rumored that several prominent mills are slated for closure.

- Jesse Neese is product manaqer, wood products cost benchmarking, Jbr RISI, the leading information provider for the global forest products industry and publisher of Crow's Weekly Market Report, the longest-running source oJ prices in the North American lumber and panel industry. He can be reached at ( 503 ) 364-397 I or jneese@ risiinfo.com.

Economy Driver Crushed

Brian Adkins, a 43-year-old delivery driver for Economy Lumber, Oakland, Ca., was killed Feb. l4 when a load of lumber fell on top of him while unloading at a residential construction site.

Police said the truck was parked on a steep grade. When the driver started to unload the boards, the three-ton shipment shifted and fell on top of him. CaI-OSHA was notified and is expected to investigate the incident.

Lausmann Grows Specialties

Lausmann Lumber. Loomis, Ca., has added several new products to its family of appearance grade specialty lumber.

Lausmann is now stocking and distributing steamed garapa hardwood decking, Wynndel Specialty Products' full line of WynnWood ESLP l" boards and lx6 and lx8 end-matched pattern stock, and specialty wood products from Bitterroot Valley Forest Products.

"With the ever-changing, down economy, we need not only to continue to grow, but to offer 'like' items of specialty appearance grade to our customers," said Chuck Luzader.

The distributor took on Wynndel end-matched ESLP as an alternative to