FRA has welcomed the news that the demand for timber is on the up thanks to the increasing appetite for timber in China.
Bainbridge Island, WA, February 14, 2012 - Forestry Research Associates (FRA) has welcomed the news that the demand for timber is on the up thanks to the increasing appetite for timber in China.
Figures on timber harvesting in 2011 analysed by forestry economist, Gary Lettman, showed that harvests had picked up last year with the number of board feet harvested looking better than the past few years, which have been disappointing for the US forestry industry.
West Wood Productions Association’s CEO, Kevin Binam claims that demand in 2012 is going to improve, but is still cautious. He said, “There’s not anybody out there jumping for joy, saying it’s going to be a roaring good year, but everybody expects 2012 to be a little better than 2011.”
Many mills in the US are still running at around 80 per cent capacity, up from around 70 per cent last year in many cases. Industry insiders said they will be able to ‘ramp up’ production should demand increase even further from China and other emerging markets.
Exports of logs to China totalled 1.1 billion feet, up 108 per cent in the first ten months of last year, which indicates a major improvement in demand from the country. Binam said, “That’s been a big game changer for, not all the Western [US] mills, but certainly for some.”
FRA’s analysis partner, Peter Collins, said that although the experts are remaining tight-lipped about the prospects in 2012, the increase in demand from China is great news for the industry, which has had a tough few years. He said “We expect this increase in demand to translate to higher timber prices, with investment in sustainable forestry plantations in developing countries still proving popular with Western investors.”
FRA is an analysis and research consultancy that specialises in forestry investment. It supports a range of sustainable projects in which people can invest, including Greenwood Management’s teak and eucalyptus plantations in Brazil.
Contact:
Peter Collins
Forestry Research Associates
620 Vineyard Lane
Bainbridge Island, WA 98110
(206) 316 8394
