China is Now the World’s Largest Importer of Softwood Lumber and Logs Despite a Slowdown in Imports During the 4Q/11
Importation of softwood logs and lumber to China has increased continuously over the past 15 years, and in 2011 the country was the largest importer of softwood lumber and logs in the world, according to the Wood Resource Quarterly. Total import value equaled almost eight billion US dollars last year, which was an increase of 57 percent from 2010, and up from only 70 million dollars 15 years ago. Annual growth over the past five years has been almost 30 percent, and over the past 15 years, the CAGR has been as high as 36 percent.
Increased Foreign Interest in Pulp Mills and Plantations in Australia While the Timber Ownership Is in Transitional Mode
The plantation ownership in Australia is in transition after the Management Investment Scheme (MIS) collapsed in 2009, reports the Wood Resource Quarterly. Foreign pension funds and pulp companies have shown increased interest in acquiring timber assets as forest plantations owners have gone into receivership.
Exports of Logs and Lumber from the US and Canada to China are on Pace to Reach a Record 2.6 Billion Dollars in 2011
Shipments of softwood lumber and logs from the US and Canada to China will reach a new record high in 2011. In 2010, the two countries exported 1.3 billion US dollars worth of softwood products; if the pace seen in the first seven months of 2011 continues, the two countries’ exports will more than double from last year, reaching a record 2.6 billion US dollars, according to the Wood Resource Quarterly.
Wood Pellet Exports from the US and Canada to Europe Reached 1.6 Million Tons in 2010, a Doubling of Shipments in Just Two Years, Reports the North American Wood Fiber Review
Over the past two years, North America has become a major supplier of wood pellets to Europe. In 2010, an estimated 1.6 million tons of pellets were shipped from the US and Canada to the Netherlands, the UK and Belgium, according to the North American Wood Fiber Review. This is a doubling of volume compared to 2008.
Wood Costs for the Global Pulp Industry Have Increased 17 Percent the Past Two Years; Only the Us South Has Bucked the Trend
Global market pulp production increased by seven percent in 2010, which increased demand for wood raw-material. As a result, prices for wood chips and pulplogs were up in most regions of the world, according to the Wood Resource Quarterly. The Softwood Wood Fiber Price Index (SFPI) has increased 16.5 percent the past two years, while the Hardwood Wood Fiber Price Index (HFPI) went up 17.7 percent.
The Wood Chip Cost Discrepancy Between Pulp Mills in Western and Eastern Canada Was the Lowest It Has Been in 10 Years in the 4q/10, Reports the North American Wood Fiber Review
Over the past 20 years, pulp mills in Eastern Canada have consistently had higher wood fiber costs than the mills in the Western provinces with the exception of a short period in 1995, according to the North American Wood Fiber Review. In the 4Q/10, softwood chip prices had fallen in Quebec and Ontario and increased in British Columbia and Alberta resulting in the smallest cost gap between the two regions in 10 years.
China’s Hunger for Wood Raw-material Pushes Timber Prices Upward, Increasing the Importation of Logs and Wood Chips to Record Levels in 2010
The forest industry in China is continuing its expansion, and with limited domestic timber resources, importation of logs and wood chips are at an all-time high, especially as tight supply of domestic logs has increased local log prices to new highs in the 2Q/10, according to the Wood Resource Quarterly.