News

Exports to China Crash

22 April 2012

In November and December 2011 log export sales to China crashed 32% over the year   before.

Sawn timber export sales fell 35% over the same period.

To all markets log exports dropped 20%      compared with just 9% for sawn timber. Sawn timber exports are much more diversified by market than log exports so benefitted from    increases to a number of small markets.

Nevertheless, of the 18 sawn timber markets we publish half of them were in negative territory.

On top of a soggy domestic market these stats are extremely worrying.

 

 

 

In November and December 2011 log export sales...

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The Selection an Ordering of Timber

30 January 2012

Timber and it’s importance as a building material in New Zealand has been recognised for over a century and a half. This role is gaining a greater significance with the world wide recognition of timber as a renewable resource and environmentally friendly material that plays an important part in the sustainability of our day to day lives.

We publish a booklet called “Selection and Ordering of Timber” as an educational tool and source of information for people employed in the building sector. The booklet covers a wide range of topics to do with wood properties, how timber is...

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Exciting New NZTIF Timber Promotion Under Way in China

9 January 2012

Capitalising on the extraordinary growth in timber demand from China NZTIF has, after three months of intensive research, initiated a programme which will rival the very successful new market programmes we executed in Australia (treated pine) and the US.

In-market representatives have been appointed and high level discussions on regulatory issues are proceeding with Chinese government representatives.

Substantial business enquiry has already been received and plans for the in-market programme launch will be released early in the New Year.

A confidential briefing for NZTIF members is also planned for the New Year.

The NZTIF board approved the programme at its...

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Canterbury Quake Press Release

9 January 2012

PRESS RELEASE FROM THE NEW ZEALAND TIMBER INDUSTRY FEDERATION
Friday 17 September 2010

Canterbury Quake Proves Timber Construction to Have the Best Structural Integrity and Safety.

The NZ Timber Industry Federation says that had more homes been constructed with raised timber floors in recent years the recent Canterbury earthquake damage and costs of repairs would have been substantially less.

It is evident that raised timber floors combined with timber frames and timber weatherboards have provided structural integrity and safety that is unmatched by other house building designs.

The fact that not one person was killed as a result of the...

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China’s Credit Bubble on Borrowed Time?

9 January 2012

Fuelled by a growing economy China’s voracious appetite for New Zealand forest products had made it the industry’s number one export destination. Are the fundamentals driving this demand about to change?

The Telegraph reports the Royal Bank of Scotland has advised clients to take out protection against the risk of a sovereign default by China as one of its top trades for 2011.

It is believed that China’s credit bubble needs to be burst before inflation levels threaten social stability.

Officially inflation in China was 5% in November; however it is hard to find anyone who believes itr is that...

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Domestic Log Supply 2011 & Beyond

9 January 2012

Domestic log supply was one of the big issues of 2010.

An explosion in log export markets saw some domestic yards empty as unprecedented volumes of logs drove straight past the mill gate and onto the wharf.

The drivers of this export boom are well known. China’s economic growth, fuelled by a government stimulus package in late 2008, continued to power forward and the country’s appetite for wood fibre surged with it.

Growing domestic wood consumption fuelled by a booming property market has been one of the drivers for this record demand for logs.

To compound things Russia, China’s biggest...

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Lumber Exports Surge

9 January 2012

Up 26%on last year the last four months have seen lumber exports bounce strongly.

57% of the increase is to Asia but 31.5% is to some newish markets (Saudi Arabia, the Netherlands and Samoa) which is encouraging.

The 7% lift to Australia has been all about currency with volumes treading water.

June quarter sawmill production was pulled along hinting at a significant recovery.

The recent lags in the exchange rate however is likely to have blunted this early spring growth – September month export sales were back to a much more subdued 6.9% above last year.

Some interesting “new arrivals”...

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Sawmillers applaud Ministers Climate Change stand

9 January 2012

The Minister for Climate Change issues, Nick Smith has spoken from the United Nations conference in Cancun about the importance of having timber products included as part of the solution in cutting global carbon emissions

Brent Coffey, Chief Executive Officer of the New Zealand Timber Industry Federation says Mr Smith’s statement will bring some real cheer to New Zealand sawmillers.

“We thoroughly support the efforts the Minister is making in getting wood recognised as one of the real heroes in the fight against climate change.”

“For years we have been telling Government about the unique environmental credentials of wood.” Current...

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Log Export Surge Falters But Sawmillers Still Affected

9 January 2012

Recent statistics confirm the continuing huge surge in log exports, mainly to China.

They also confirm a timber processing industry which is going backwards, with exports in the six months to June 2011 being 10% lower than last year and a stagnant local market. For the months of May/June timber exports were actually 22% lower than the year before. This is the biggest and sharpest decrease we have on record.

But right now, which is the time zone we actually live in, log exports have collapsed. Almost overnight prices have fallen by up to 30% and export ports at both...

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Sawn Timber Exports Struggle

9 January 2012The four months to June 2011 show a 15% drop in sales. That contraction is very sudden and historically, very large. NZ Exports of Sawn Timber 4mths4mths% Jun-10Jun-11Change Australia68.457.6-15.79 United States62.546.1-26.24 Japan 14.910.5-29.53 China/Hong Kong53.341.8-21.58 Taiwan 10.014.1+41 Thailand9.610.7+11.46 Indonesia10.610.4-1.89 Philippines4.35.2+20.93 South Korea9.113.1+43.96 Vietnam 23.518.7-20.43 Malaysia2.73.8+40.74 New Caledonia2.83+7.14 Samoa 3.13.6+16.13 South Africa2.63.742.31 Spain 3.42.2-35.29 India 0.74+471.43 Maldives01.2-1 Total 281.5249.7-11.3 All countries310.5264.3-14.88 Annualised it means that the cashflow from exports has dropped by $138 million. At the same time, we calculate, the total cost of purchasing logs to be cut for export, would have actually increased (due to price increases) despite less production. Given that other factors of production would have been inflating at an average of 5%, the shrinkage in cash flow would have...

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