Australian Timber Market Survey

13 September 2012

URS has released details of their Australian timber market survey for the June quarter. The key findings are as follows

The number of approvals for the construction of private sector detached

houses fell by 5.6% over the June quarter 2012, which indicates soft

demand for structural timber products. Construction activity in the

housing market remains subdued with the latest available data on the

number of new dwelling commencements showing a decline of around

12.6% over the March quarter 2012;

Import volumes of softwood and hardwood sawn timber fell by around

4% and 16%, respectively, over the June quarter 2012, despite a strong

Australian dollar and low international freight costs. Meanwhile, imports

of wood-based panels and engineered wood products increased by

around 11% over the quarter, to be around 7% higher over the year to

June 2012;

Prices for major softwood structural MGP10 and MGP12 products

softened over the June quarter, with price falls ranging from around

1% to 2%. This continues a downward trend for MGP products over the

18 months leading up to June 2012, which has coincided with the

downturn in housing construction activity; and

Price movements for kiln dried structural hardwood products F17 and

F27 showed moderate increases of around 1% and 2%, respectively,

over the six months to June 2012. Hardwood fl ooring products, including

Spotted Gum, Blackbutt, and Victorian Ash species, experienced price

increases of around 3% to 5% over the same period.

URS has released details of their Australian timber market survey for the June quarter. The key findings are as follows

The number of approvals for the construction of private sector detached

houses fell by 5.6% over the June quarter 2012, which indicates soft

demand for structural timber products. Construction activity in the

housing market remains subdued with the latest available data on the

number of new dwelling commencements showing a decline of around

12.6% over the March quarter 2012;

Import volumes of softwood and hardwood sawn timber fell by around

4% and 16%, respectively, over the June quarter 2012, despite a strong

Australian dollar and low international freight costs. Meanwhile, imports

of wood-based panels and engineered wood products increased by

around 11% over the quarter, to be around 7% higher over the year to

June 2012;

Prices for major softwood structural MGP10 and MGP12 products

softened over the June quarter, with price falls ranging from around

1% to 2%. This continues a downward trend for MGP products over the

18 months leading up to June 2012, which has coincided with the

downturn in housing construction activity; and

Price movements for kiln dried structural hardwood products F17 and

F27 showed moderate increases of around 1% and 2%, respectively,

over the six months to June 2012. Hardwood fl ooring products, including

Spotted Gum, Blackbutt, and Victorian Ash species, experienced price

increases of around 3% to 5% over the same period.