Poplar Prices Soaring High – Market Insight

hardwood price
hardwood price

Overview :

The global pandemic has disrupted some of the major demand and supply equilibriums across the wood industry and ‘Poplar’, often known as ‘Whitewood’ is no different.

• We (Brenlo Ltd) prefer American Poplar because it has smoother finish, and clean sharp edges unlike Canadian Poplar (Aspen) which is not ideal for painting, tends to fuzz up during milling process and is not a stable product.

• FAS (First and Seconds) grade that we use, is the best grade in the market that offers the least amount of defect based on surface measure of each board. The minimum width of FAS is 6”.

Moreover, Toronto is the single largest consumer market for primed grade Poplar.

Breaking the Equilibrium:

1. Broken Supply Chain

• As the pandemic urgency commanded, the mills were shut down, directly impacting the production lines. The sawmills-initiated layoffs and scaled down the production.
As we discussed in our last newsletter, the basic economics can be clearly observed in Poplar price hike scenario as well.

•The production lines continued to be closed causing an all-time supply dip in 60 years and this was way down from the annual prediction made by industry specialists.

2.  Rise in DIYers and High-end Renovations

• Interestingly, when people were at home, they started looking at renovations and home improvements. In a couple of months, the continuous demand for furniture, luxury home renovations, kitchen cabinetry and more, kicked up once again.

• Massive ongoing renovations not only impacted the softwood, but also the hardwood. This effect was clearly visible on different product groups including ‘Poplar’ wood.

During the first two months of the recession, home-improvement sales shot up by 13%. That phenomenon caused lumber demand to spike, even as sawmills were halting production. (Credit: The Fortune)

• The following graph depicts the macro level scenario where there is an approximate increase of a billion DIYers over the period of 1 year.

Moreover, there is a significant rise of approximately 40 % in housing starts in GTA, Ontario over the last 2 years.

Wood price hike
Credit : Fortune.com

3. Major Employee Crisis

As the demand continued rising up, employees were still preferring to stay back at home with the acceptable subsidiaries and incentives offered by the government. This industry is still suffering from the lack of staff.

 

American Poplar - Unfolding the Pricing and the Road Ahead:

Home construction remains high in demand. With an incessantly increasing demand, prices surged beyond expectations and the figures almost doubled in the last 2 years.

BRENLO is communicating, on a weekly basis, with some of the largest hardwood mills in North America who consistently agree to the following points:

Prior to the new Covid variant (Omicron), Poplar prices were stabilizing with a chance of potential price reduction based on volume increase from the Mills. However, this new variant is going to have an impact on production and our expectation is of an estimated price rise between 5%-15% in the coming months.

• The production lines are open and mills are incentivizing employees such as signing bonuses to join back. However, the situation still remains delicate.
• Production is likely to increase but it will take some time to bring everything on track and meet the demand curve.
• The organizations such as Northwest hardwoods are investing in upgrading their capabilities and technologies. They are focusing on increasing production and buying more timberland.

What is Brenlo doing:

Hardwood Poplar price

In fear of further disruptions in supply chains, Brenlo is taking a large position in Poplar, specifically 4/4 (which is used for most casing, jambs, doorstops & baseboards). Our goal is to ensure that we carry a strong inventory position so that you have confidence that we will have your product in stock or be able to meet custom product lead times.

1. We have doubled our rough lumber inventory for the year 2022 to balance out an unsure supply chain.

2. We are increasing our manufacturing capabilities to meet tight project deadlines.

65 Worcester Road
Toronto, ON M9W 5N7
P:  416-749-6857
F:  416-749-8969
E:  [email protected]

7000 Tranmere Dr
Mississauga, ON L5S 1L9
P:  905-677-9204
F:  905-677-7859
E:  [email protected]

Copyright © 2021 Brenlo Ltd.

1. Broken Supply Chain

• As the pandemic urgency commanded, the mills were shut down, directly impacting the production lines. The sawmills-initiated layoffs and scaled down the production.
As we discussed in our last newsletter, the basic economics can be clearly observed in Poplar price hike scenario as well.

•The production lines continued to be closed causing an all-time supply dip in 60 years and this was way down from the annual prediction made by industry specialists.

Economic Outlook: Hardwood Plywood Market

Plywood forecast news
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Plywood forecast news

INDUSTRY UPDATES - PLYWOOD Supply, Price and Impact

What are the primary channels of Plywood?

A growing market appetite from the DIYers and home renovators segment has contributed to disrupting the demand-supply equilibrium. To understand the overall situation, we need to be aware of the global supply chain, limits on labor, rising raw material costs, limited supply of said materials, unprecedented congestion at the ports; all under the umbrella of inflation.

Let us begin by understanding the role of housing, that impacted the primary channels of Plywood :

  • Distribution
  • OEMs (Original Equipment Manufacturers)
  • Retail

All these primary channels reacted differently to economic shutdowns due to Covid-19.

  • The demand for Plywood quickly surged because of the growing DIYers segment.
  • Resulted Situation – Demand continued to rise while production was still shut down and impacted.
  • Subsequently, because of quick stock-outs, people started looking for priced alternatives.

The following image shows an increase in the number of DIYers over the past year.

Core Reason : Massive Shutdown in production but an unexpected recovery of residential construction.

Who suffered the most : OEMs and Distributors

This following graph depicts an incessant rise in single-unit housing. This is also an opportunity for the industry players.

Plywood Market

Growth Projection of Hardwood Plywood

The projection says 10+% YoY growth for domestic decorative hardwood plywood in 2021, with moderate and slight growth in 2022 and 2023, respectively.

(Source : https://www.columbiaforestproducts.com/2021/03/01/role-housing-hardwood-plywood-forecasting/)

  • Not only the COVID-19 pandemic has  impacted the markets but also, the massive changes happening in regards to imports of competitive products—hardwood and softwood plywood.
  • These product categories have also been impacted by the “Trade War” with China.
  • The projections are somewhat similar to MDF. Read here.

The following table compares the total volume of hardwood and softwood plywood imports decline from China with the total row volume change percentage.

2021-22 to show strong double-digit growth in single-unit housing units, driven by very low inventories, low borrowing rates, an exodus from large urban areas to suburban communities, and several other variables. 

Brenlo's Take - What we are doing ?

We are in this together.

  • We are trying to match our pace in this disruptive supply and demand equilibrium. 
  • With our initiatives, we are keeping our customers informed about the potential price rise because of unexpected demand surge.
  • We are building our stock inventories to cut down lead times and support projects.
  • We are constantly increasing our manufacturing capabilities by hiring new skilled staff.

Check out our updated catalogue here.

Follow us on Instagram for latest products and industry updates

65 Worcester Road
Toronto, ON M9W 5N7
P:  416-749-6857
F:  416-749-8969
E:  [email protected]

7000 Tranmere Dr
Mississauga, ON L5S 1L9
P:  905-677-9204
F:  905-677-7859
E:  [email protected]

Copyright © 2021 Brenlo Ltd.

Will Barn Doors continue to trend?

Barn Doors Brenlo
Barn Doors Brenlo

Barn Doors will continue to trend in 2022-23

Barn Doors are making a statement by creating a timeless look, both for interior and exterior living spaces. These doors combine practicality and aesthetics by bridging ease and look together.These doors are commonly hung as a sliding door that requires a track and a hardware to support its move.

While deciding on a barn door, always visualize the open and shut doors separately. Both the looks are pretty unique and add accent to the entire space.

Considering the current trends, Barn doors are trending and people want to add these doors as an element to define their interiors. Surely, this trend is going stronger and is picking up more with each passing day.

Barn Doors Brenlo

Going further in this article, let’s talk about the functionality and the appeal of a barn door. Subsequently, we will understand the types, unique elements and inspirational design ideas.
Let’s slide through the Barn Doors.

Functionality of a Barn Door

Barn Doors are extremely functional that fit in well in all kind of spaces, be it small or large. These doors can be a perfect replacement to a pocket door, which sometimes can be difficult to adjust. 
It is a great offering to make to a customer who needs to save on space and add popular elements to curate an inviting ambience. Barn doors provides a better solution in terns of flexibility or dexterity.

 

Barn Doors are Lighter!

Well, thats a blessing in disguise. Barn Doors are lightweight and easier to slide because they are installed on a track, making them suitable and user friendly for people of all ages.

Barn Doors Brenlo

Barn Doors as Space Guards!

We call these unique doors as ‘Space Guards’ because of their ability to save a good amount of space allowing you to utilize the area more efficiently. Every inch matter when you are planning interiors for a smaller space and then these doors can also help you organize your large living area into smaller spaces. Check out the amazing ideas to use Barn Doors.

Barn Doors Brenlo

Focal Point of the living space

With a unique appeal and appearance, undoubtedly the barn doors become the central point of focus. These doors generate interest by elevating any basic uninteresting design format into a charming modern design.

Barn Doors Brenlo

Barn Doors, essentially can belong to any part of your home. Before you decide on a barn door, make sure to have an adequate support for its installation. You can get your doors custom designed and as unique as you want.
Brenlo Ltd has a strong history of supplying incredible doors and mouldings . They have one of the most supporting staff who walk through with you at every step. Checkout their amazing door display at the showroom and reach out to them at [email protected]

65 Worcester Road
Toronto, ON M9W 5N7
P:  416-749-6857
F:  416-749-8969
E:  [email protected]

7000 Tranmere Dr
Mississauga, ON L5S 1L9
P:  905-677-9204
F:  905-677-7859
E:  [email protected]

Copyright © 2021 Brenlo Ltd.

How high-quality French Doors can beautify your living space?

High Quality French Doors
High Quality French Doors

Why Choose High Quality French Doors ?

A French door is primarily constructed using glass and appears more like a wall-size window, rather than a regular door. These doors offer a major advantage of allowing light to flow more easily between spaces.

French doors have recently regained their popularity and are a major contributor to home improvement projects. These doors can be included in the original architectural design of a home or can be replaced with the present doors. These doors beautify living spaces by connecting them visually to adjoining interior or outdoor zones.

Type of French Doors

                                                                                                                                                        Exterior French Doors

French doors are known for creating those welcoming first impressions.

French Doors Brenlo
Credit :Pinterest

                                                                                                                                                     Interior French Doors

French doors can be used as a partition between spaces to create that visually attractive interior design.

Credit : Pinterest

                                                                                                                                                                                 Pocket Doors    

Pocket French doors save space by sliding inward instead of swinging outward.

Credit :Pinterest

                                                                                                                                                                            Multifold Doors

These doors create a beautiful frame appearance when folded and becomes a stately wall of light, when closed.

Brenlo French Doors
Credit :Pinterest

                                                                                                                                                                            Sliding Doors

Sliding French doors are mainly used in balconies to save on the space and create a magnificent look.

Credit :Pinterest

Door manufacturing facilities such as Brenlo Ltd can custom design a door that you are looking for. In order to increase the durability of exterior French doors, they use exterior cladding using metal or fiberglass skin to the exterior doors. These doors are sleek, elegant and can be tailor-made to suit any existing home décor.

French Doors are also used as a decorative substitute to solid wood doors which also makes them a great choice for the back patio.

One can choose glass options as per their privacy needs and have doors custom-made. If you want to make sure that your door matches environmental compliance and is only manufactured by a certified company don’t forget to look for FSC logo.

Benefits of French Doors

1. Quick access to patio or outdoor spaces

These doors connect interiors and exteriors creating a seamless spacious look. Easy access to outside areas provides an extension to natural surroundings imbibing positive moods.

Credit :Pinterest

2.  Energy Efficient

These doors allow an incredible amount of natural light inside a living space-saving on energy. These doors not only bring natural light and warmth into your home but also transforms it into a completely new and rejuvenating ambience.

Brenlo Doors
Credit :Pinterest

3. Aesthetic Look

French doors come with decorative aesthetic features that can possibly beautify any living area. They create a sense of openness when used as room partitions as they can make your home look and feel larger.

French Doors
Credit :Pinterest

4. Smart Investment

A French door addition to your home can dramatically amplify the look subsequently increasing the potential value of your home.

Brenlo French Doors
Credit :Pinterest

5. Enjoy cold outdoors from the comfort of your warm Indoors

These doors help you unlock the possibility of relishing winter views without venturing outside.

Credit :Pinterest

6. Noise Block

Whether used as an interior partition or in exteriors, French doors allow you to cut down on unwanted noise without disrupting your views.

Inspirational Gallery : French Doors

Brenlo Ltd has been manufacturing and supplying custom doors and mouldings for more than 30 years. Check out the speciality doors options with a glass type selection.

Check out their project gallery and view the full catalogue to pick your options.

65 Worcester Road
Toronto, ON M9W 5N7
P:  416-749-6857
F:  416-749-8969
E:  [email protected]

7000 Tranmere Dr
Mississauga, ON L5S 1L9
P:  905-677-9204
F:  905-677-7859
E:  [email protected]

Copyright © 2021 Brenlo Ltd.

Everything About Sustainable Wood

Sustainable Wood - Brenlo Ltd
Sustainable Wood - Brenlo Ltd

EVERYTHING YOU SHOULD KNOW ABOUT SUSTAINABLE WOOD

We must endure ecological balance and strive to sustain the diverse ecosystem of our planet. Sustainable Lumbering is a practice, wherein trees are harvested responsibly without harming the natural aesthetics including native flora and fauna. Sustainable wood is garnered from well-managed forests that are continuously replenished; reversing the adverse effects.

Sustainable Wood

Illegal Logging – Restricted and Endangered Wood Species

ly a few people ponder over the origin of wood used in their furniture, doors or floors. Globally, 15 to 30 percent of timber is taken illegally. (Source: https://theconversation.com)

Global timber trafficking destructively impacts in the following ways:

1.Destruction of endangered wood species, subsequently harming the natural habitat.
2. Striping off the economic livelihood of communities depended on these forests.
3. Financial loss due to untracked smuggling of species abroad. According to Interpol, this alarmingly high illegal timber trade is worth US$50 billion to $150 billion annually.

(Source: https://theconversation.com)

Finding Sustainable Wood

A few companies, such as Brenlo Ltd abide by rules laid by the most prominent Forest Stewardship Council (FSC), a non-profit organization. They have an internationally recognized robust certification system that ensures the use of sustainable woods.

4 Popular Sustainable Hardwood

  1. American Poplar
  2. Cherry
  3. White Oak
  4. Maple
Sustainable Wood Brenlo Doors

1. American Poplar – White Wood
Sapwood: Gray to light brown
Heartwood: Light to medium brown
Grain: Straight with a course, uneven texture
Material Type: Very Durable

2. Cherry

Sapwood: Creamy, Pale yellow color
Heartwood: Initially it is light golden/pink tone and darkens to a rich, reddish-brown color
Grain: Straight Grain, Fine Texture
Material Type: Durable

3. White Oak

Sapwood: Lighter/Creamier in color
Heartwood: Dark/ Gray tones
Grain: Straight Grain, Uneven Texture
Material Type: Durable

4. Maple

Sapwood: Nearly White, Off-white (Sometimes, reddish golden hue)
Heartwood: Dark/ Gray tones (Darker reddish brown)
Grain: Straight Grain, Fine, Uniform Texture
Material Type: Durable

Brenlo's Environmental Compliance

Brenlo has marked its presence for maintaining Industry best practices and environmental compliance.
We are FSC Certified and have an expert staff supporting our active involvement in the Canada Green Building Council, LEED building and AWMAC commercial standards.
We believe in protecting our natural resources and only source our wood which is sustainable. Our suppliers actively enforce all federal and regional Sustainable Forestry Initiatives, and support the standards set by the National Hardwood Lumber Association.
Our belief and systems in place allow us to follow strict guidelines and obtain sustainable wood to help sustain the forests, wildlife habitats and natural ecosystems.

65 Worcester Road
Toronto, ON M9W 5N7
P:  416-749-6857
F:  416-749-8969
E:  [email protected]

7000 Tranmere Dr
Mississauga, ON L5S 1L9
P:  905-677-9204
F:  905-677-7859
E:  [email protected]

Copyright © 2021 Brenlo Ltd.

What’s up with MDF?

MDF Article
MDF Article

What’s Up with MDF?

A growing market appetite and interesting industry dynamics have caused an exponential price drift for MDF since the last year.

As the global economy recovers, the reopening of sectors such as hospitality has resulted in an unusual demand spike, subsequently doubling the MDF prices in the last couple of months.

 

MDF Price Hike and Challenges Ahead

Mills have become very selective in prioritizing their supplies based on operational capabilities, volumes, partnerships and this has impacted smaller industry players. 

MDF prices continue to rise

Will the prices go down? In short, no. In fact, the rising prices are expected to continue in the next quarter as well. Let us look at the following reasons.

MDF
  • The burgeoning building and construction industry and home improvement projects.
  • An organized furniture industry growing at a rate of 20% per year (World Bank Report).
  • Increasing freight charges and import duties.

MDF Shortage 2021 & What is BRENLO doing?

  • Hired more employees to meet production deadlines.
  • Increased Stock inventory to maintain lead times and ensure timely deliveries.
  • R&D on affordable alternatives.
  • Strong Supplying partners.

Years ago, MDF disrupted the market as a cheaper alternative, however, the raised price is the new low now.

65 Worcester Road
Toronto, ON M9W 5N7
P:  416-749-6857
F:  416-749-8969
E:  [email protected]

7000 Tranmere Dr
Mississauga, ON L5S 1L9
P:  905-677-9204
F:  905-677-7859
E:  [email protected]

Copyright © 2021 Brenlo Ltd.