Hurricane Sandy boosts Timber prices, claims FRA

Timber prices are rising as a result of the devastation caused by Hurricane Sandy, which could mean growing returns for those with investments in timberland, according to reports by FRA.

Bainbridge Island, WA, November 01, 2012 - Timber prices are rising as a result of the devastation caused by Hurricane Sandy, which could mean growing returns for those with investments in timberland, according to reports by Forestry Research Associates (FRA).

The Chicago Mercantile Exchange was up yesterday by the maximum daily rate of $10 for 1,000 board feet. The rise is the result of the demand for timber for use in the rebuilding of thousands of homes, which were damaged by the hurricane throughout the Eastern US. Daryl Swetlishoff, form Raymond James Ltd, told Canada’s Globe and Mail Newspaper, “Lumber prices are atypically high for this point in the year, and bucking a seasonal trend already.

“For the near term, even if the hurricane is partially a psychological impact on lumber, prices are going to be buoyant, he added.

Several large forestry firms in Canada are now preparing to up their production in order to meet the new demand for lumber. The US might also import timber from elsewhere, such as Latin America, according to FRA’s analysis partner Peter Collins. Mr Collins explained: “The impact of Sandy was obviously devastating for many people living on the East Coast and the demand for timber to quickly rebuild their homes will be huge.”

Investing in sustainable timber, through plantation projects like those run by Greenwood Management and other similar firms in Brazil, can be a lucrative option at the moment. “Several analysts are predicting a boom in timber prices as demand continues to creep up,” added Mr Collins.

Mr Swetlishoff added, “A shock like this could keep prices higher and for longer in a season when it is typically weak. We’re tempering our view by saying that prices were already a bit elevated.”

Prices are high due to strong demand from emerging economies like China and India, which are importing huge amounts of timber for house building and infrastructure development.

Contact:
Peter Collins
Forestry Research Associates
620 Vineyard Lane
Bainbridge Island, WA 98110
(206) 316 8394
info@forestry-research.com
http://www.forestry-research.com

Reports of Increased Timber Prices Welcomed by FRA

Forestry Research Associates (FRA) has highlighted the news from the Malaysian Timber Council (MTC) that the prices paid for its exported timber products are up by five per cent year-on-year.

Bainbridge Island, WA, October 08, 2012 - Forestry Research Associates (FRA) has highlighted the news from the Malaysian Timber Council (MTC) that the prices paid for its exported timber products are up by five per cent year-on-year.

“This is great news for timber investors, as it suggests demand for timber is up and prices could rise globally,” stated FRA’s analysis partner Peter Collins. The chief executive officer of the MTC, Cheah Kam Huan, explained that the majority of the growth has been measured in the second half of the year so far. He explained that the first half saw prices that were less favourable but that demand from the US and elsewhere, particularly for timber furniture, was driving prices up in the past few months.

Speaking at the International Conference on Market Requirement for Timber and Timber Products, Mr Cheah said, “Hopefully, the second half would be better than the first half. So far, it is showing good results.” In fact, exported timber furniture prices increase by an impressive 12 per cent so far this second-half.

In addition to this good news came further positive noises from US–based International Wood Products Association, Brent McClendon, who added that the value of hardwood plywood imports to the UK from Malaysia so far this year had increased by 70 per cent.

FRA said that the reports that timber demand from the US was rising was great news for timber investors everywhere. Mr Collins added, “We can see demand for timber continuing to rise from the US, due to the improvements in the housing market.”

FRA supports a range of timber investment schemes and supports sustainable plantations investment projects like those run by firms like Greenwood Management and Ethical Forestry Investment in Brazil and elsewhere.

“Sustainably managed plantation timber is a good investment option for those looking to diversify their portfolios.” added Collins.

Contact:
Peter Collins
Forestry Research Associates
620 Vineyard Lane
Bainbridge Island, WA 98110
(206) 316 8394
info@forestry-research.com
http://www.forestry-research.com

Timber Prices Growing "Thanks to Asian Housing Boom", says FRA

Timber prices are increasing in the US because the demand for lumber continues to grow in Asia, according to FRA and research from the Claymore Beacon Global Timber Index.

Bainbridge Island, WA, August 22, 2012 - Timber prices are increasing in the US because the demand for lumber continues to grow in Asia, according to Forestry Research Associates (FRA) and research from the Claymore Beacon Global Timber Index.

The figures show that log exports from the US to Asia increased by 5.2 per cent in the first three months of 2012 and analysts believed that the boost to demand came as a result of the booming global housing market.

“Growing economies, like China and India, are all hard at work building new homes for people increasingly moving into urban areas to take the newly created jobs in these regions,” explained FRA’s analysis partner, Peter Collins. “Lumber is one of the main building materials used in these countries and they are shopping millions of tons of logs in form elsewhere to meet demand, which is great news for timber and forestry investors worldwide.”

An example of the house-building boom in China comes from the latest figures from Xinyuan Real Estate Company, which reported growth of 73.53 per cent for so far in 2012.

Now is a great time to invest in timberland, according to FRA and other forestry investment experts. The market for housing in the US is also looking to be improving, which will mean the domestic demand for timber logs will also increase over time.

“Timber is a great medium to long-term investment solution for those who want a low-risk portfolio,” stated Mr Collins.

Investing in forestry through sustainable plantation projects, such as those run by firms like Greenwood Management in Brazil and Canada, is a popular option. These plantations investment plans allow people to directly buy forestry land with as little as $10,000. The plantations are already in operation and the cyclical growing model means returns start to be seen by investors before their specific trees come to maturity.

Contact:

Peter Collins

Forestry Research Associates

620 Vineyard Lane

Bainbridge Island, WA 98110

(206) 316 8394

info@forestry-research.com

http://www.forestry-research.com

FRA Claims Increased Exports to China to Boost Timber Prices

Forestry Research Associates (FRA) have commented on new figures from Wood Resources Quarterly that show 2011 exports of softwood lumber from the US and Canada to China will reach record levels.

Bainbridge Island, WA, October 14, 2011 - Forestry Research Associates (FRA) have commented on new figures from Wood Resources Quarterly that show 2011 exports of softwood lumber from the US and Canada to China will reach record levels.

FRA, a research and analysis consultancy, has welcomed the new predictions of record experts, claiming that the demand could drive wood prices up.

Some $1.3 billion worth of softwood products were shipped from the two countries to China last year. Wood Resource Quarterly predicts that if the export rate continues at the level seen in the first seven months of 2011, total exports will double from 2010 values.

Much of the growth in exports has come from the British Columbia region of Canada, where millions of tons of timber killed by the local Pine Beetle infestations have accounted for much of the timber exported. Controversially many of Canada‘s sawmills are seeing a huge amount of their processing work being moved to China, which many claim is threatening jobs.

Despite this, FRA claims that the demand from China is a positive thing for the forestry industry, and particularly for those who are investing in forestry as prices are being driven up. FRA’s analysis partner, Peter Collins explained, “Canada and US forest managers are enjoying impressive increases in the value of their exports thanks to huge demand from East Asia.”

He added that in years to come, demand from the Far East and Europe will exceed supply and more sustainable plantations need to be established to meet this demand. He said, “Firms that are establishing new plantations in developing countries, like Greenwood Management, which has planted forests of teak and eucalyptus in Brazil, will help the forestry industry to meet demand by filling the gaps.”

Wood Resource Quarterly also agrees that the Chinese market will continue to grow, presenting opportunities for expansion for the US and Canadian forestry industries.

Contact:

Peter Collins

Forestry Research Associates

620 Vineyard Lane

Bainbridge Island, WA 98110

(206) 316 8394

info@forestry-research.com

http://www.forestry-research.com