Global timber market review #19-2015

– A Chinese company plans to invest $250 million to build a massive wood-processing plant in New Zealand. Fenglin Wood Industry Group, based in Nanning, has already been carrying out a feasibility study on building and operating a highly advanced sawmill in the central North Island, Xinhua news agency reported, which is due to be completed by early 2016.

– Japan is increasingly relying on own domestic lumber production and less on imports. Japan’s lumber self-sufficiency rate has reached a new high of 30% in 2014. This is the highest level in 27 years. According to the Japan Times daily, the recovery reflects increasing demand for Japanese lumber and yen’s weakness, which has lifted prices for imports. There is also an upward trend noticed in biomass power generation.

– As TTJ reported, Sodra’s sawmilling division recorded an operating loss of SKr20m (€2.13 million) in May-August mainly due to lower prices for finished goods and higher prices for raw materials.

– The German wood industry recorded a slight increase in sales of 1.2% in the first half-year, Fordaq reported. A significant influence on the slowdown in growth was the current drop in the construction industry.

– The National Bureau of Statistics in China has released data for investments in real estate in January-August. According to ITTO, total investment volume increased 3.5% year-on-year, but the pace continues to fall. Investment in residential buildings in the first eight months was up by 2.3% and accounted for 67.3% of all investment in real estate.

More detailed review of global market trends of roundwood, lumber, wood panels and pellets as well as news of the Russian timber industry; exclusive articles and interviews; over 25 pages of price charts are available in our digital Russian Timber Journal.