Forest Products Industry
Equipment for the leading Japanese wood processing company Chugoku Mokuzai
As a result of long-term cooperation, Hekotek AS has signed a contract for the supply of log feeding equipment, wood chips and sawdust and sawn timber conveyors to the Japanese company Chugoku Mokuzai (Chugoku Lumber Co Ltd.).
Chugoku Mokuzai is one of Japan’s leading wood processing companies with several production units across the country. The new sawmill will be built to replace the production unit destroyed in 2023 by fire in Ibaraki Prefecture on the eastern coast of Japan.
In this new production unit it is planned to saw round logs of Douglas fir (Pseudotsuga menziesii) from North America. The finished sawn timber will be sold by Chugoku Mokuzai mainly on the domestic Japanese market.
The transport capacity of the equipment supplied by Hekotek is expected to be approximately 100 sea containers, the first of which will begin their long sea voyage in the coming months. Production at the new unit is scheduled to begin in early 2027, preceded by an approximately 8-month-long period of installation and testing of the equipment.
The equipment supplied by Hekotek will ensure the feeding of logs at various speeds to the modernmost HewSaw sawline. The entire equipment set supplied by Hekotek is designed and manufactured based on particularly high technological requirements, where the proportion of human labor in the entire production process is minimized.
We would like to thank both the Chugoku Mokuzai project team and our local representative, Oki Kikai Ltd., for their trust and will do everything we can to ensure that the project succeeds as expected.
https://hekotek.ee/equipment-supply-to-leading-japanese-wood-processing-company-chugoku-mokuzai/
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Wales’ first timber industrial strategy
Wales has launched its first Timber Industrial Strategy, to capitalise on growing global demand for timber, which is expected to quadruple by 2050. Source: Timberbiz Deputy First Minister Huw Irranca-Davies launched ‘Making Wood Work for Wales’ at the Royal Welsh Show. The new strategy represents years of collaboration with Wales’s timber sector and follows extensive public consultation. It aims to increase both the scale and value of timber grown and timber products produced across Wales. Greater use of timber in construction will secure the forest industry’s future, supporting new investment, jobs and improved carbon outcomes. Recruiting skilled workers is becoming increasingly important as the industry expands. The strategy will improve communication with young people about forestry careers in Wales, working with Careers Wales and organisations such as the Royal Forestry Society. “I am so proud to be launching Wales’s first ever Timber Industrial Strategy today. I want our forests to be in active, sustainable and diverse use, providing economic, environmental, social and cultural benefits to the people of Wales for many centuries to come and this strategy will play a key role in that,” Huw Irranca-Davies, Deputy First Minister with responsibility for Climate Change and Rural Affairs said. “As the world works towards net zero, timber and wood fibre can make an immediate and important contribution to the materials transition needed for decarbonisation.” Woodknowledge Wales is currently delivering the Welsh-government-funded Home-Grown Homes 2 project using timber in social housing, helping to decarbonise construction, support local supply chains and create more sustainable places to live. “Timber is central to building a low-carbon, circular economy – supporting decarbonisation, rural livelihoods, and sustainable development. Housing is one of the clearest use-cases for scaling up the use of Welsh-grown timber,” Gary Newman, Chief Executive, said.
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FSC approval for Asia-Pacific Regional Forest Stewardship Standard for smallholders
The FSC Board of Directors has approved the transition of the Asia-Pacific Regional Forest Stewardship Standard for smallholders (AP RFSS) from a pilot test to a Forest Stewardship Standard (FSS), marking the end of the five-year pilot test phase initiated after the Board approval in June 2021. Source: Timberbiz This decision marks a significant milestone for smallholder certification in the Asia-Pacific region, ensuring a robust framework for sustainable forest management for very small-size forest producers. The AP RFSS currently targets management units of plantations below 20 hectares in India, Indonesia, Thailand and Vietnam, encompassing timber, Non-Timber Forest Products (NTFP) and ecosystem services. In South-East Asia, relatively large quantities of forest products are produced by very small forest owners, with the average size of a management unit being around 3-5 hectares. The Asia-Pacific Regional Forest Stewardship Standard for smallholders was developed to address the challenges and to provide easier access to FSC certification through: A simplified standard for very small forest producers. Greater flexibility in demonstrating conformity. Ways to reduce certification costs. The AP RFSS was developed as a regional standard through extensive stakeholder consultations and field testing at the country level between 2018 and 2020. By 30 June, 68 AP RFSS audits had been conducted or are currently underway across the four pilot test countries, involving six certification bodies. In 2024, FSC conducted a mid-term progress evaluation. The progress report highlighted several positive results: Alignment with FSC Principles and Criteria, with effective criteria and indicators and low forest management risks. Strong smallholder uptake, with the number of AP RFSS audits more than doubling each year. By mid-2024, nearly 57,000 hectares of plantations were certified in Vietnam and Indonesia. Potential application to natural forests below 20 hectares, including NTFPs and ecosystem services. Based on even more extraordinary results observed in the first months of 2025, the proposal to anticipate the transition of the pilot test to a normal FSS was made to the Board in its 102nd meeting, granting certificate holders access to the long-term benefits of FSC certification beyond the pilot test timeframe. With this approval, the standard will be applied like any other Forest Stewardship Standard from 1 July 2025 onwards. FSC has committed to finalizing all current pilot test activities with certification bodies involved in the pilot test. Additionally, FSC will collaborate with Assurance Services International (ASI) to ensure that the AP RFSS for smallholders continues to adhere to the FSC Principles and Criteria. In further positive news, the scope of the AP RFSS will soon be expanded to include NTFPs and ecosystem services in natural forests, broadening the impact and benefits of the standard for smallholders in South-East Asia. FSC will closely monitor the first audits in Indonesia to ensure effective implementation of the extended standard. Watch these inspiring videos to learn more about the AP RFSS implementation on the ground: Tapping Change: Empowering Smallholders through FSC-Certified Natural Rubber in Kerala FSC standard for small scale producers in Viet Nam.
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First fully automated roof truss production line in the world
Trussmatic, a Finland based robotic automation and software technology company has received its first contract and purchase order from a leading truss manufacturing company Atlas Engineered Products Canada. Source: Timberbiz Trussmatic’s technology, the first fully automated wood roof truss production line in the world, represents one of the most significant manufacturing and production advances impacting the roof truss industry over the last 50 years. Atlas Engineered Products is a leading multiregional Canadian manufacturer of wood structural components, floor and roof trusses, floor and wall panels. It is backed by engineering and assembly services. One of the cornerstones in the company’s growth strategy is automation to bolster production capacity, and serve the rising demand for affordable, modular housing. The present order reflects with a start of a strong partnership between the companies and forms a foundation for AEP’s growth strategy in Canada to automate AEP’s truss plants. Trussmatic’s technology enables AEP to scale nationally without scaling human labour linearly — critical in Canada’s tight construction labour market. Trussmatic systems are ideal for new greenfield facilities as the modular nature of Trussmatic setups allows AEP for standardized deployment across sites — streamlining implementation at multiple plants. “We are extremely happy and honoured to serve the largest truss manufacturer in Canada. The present order makes Trussmatic a truly global player after successful deliveries in Europe, USA as well as in Australia. Our partnership with AEP is a key milestone for us and strengthens our presence in the Northern American market,” says Janne Leinonen, Trussmatic CEO “We are excited to partner with Trussmatic as we take this major first step toward automating our production facilities across Canada,” said Hadi Abassi, CEO & Founder of Atlas Engineered Products Ltd. “Trussmatic’s innovative robotic technology aligns with our vision to increase efficiency, quality, and scalability, allowing AEP to better serve the growing demand for high-quality, affordable housing despite a shortage of skilled labour in the construction industry. This collaboration marks a significant milestone in our commitment to leading the industry with cutting-edge solutions and delivering exceptional value to our customers nationwide.”
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LNG is expensive compared with bioenergy from wood residues
The release of the LNG import investigation in New Zealand confirms what’s already clear. LNG is an expensive energy option according to the Bioenergy Association. Source: Timberbiz “The Bioenergy Association welcomes the investigation,” Executive Officer Brian Cox said. “But we urge the need for a broader energy strategy that includes all technologies, and especially bioenergy. Growing New Zealand’s manufacturing and employment base depends on a stable, secure, and sovereign energy supply. Without it, industry struggles, as energy can make up a third of production costs.” Mr Cox highlighted that the report indicates that LNG’s landed cost is around NZ$18/Giga Joule (GJ), with retail prices likely exceeding NZ$36/GJ. “In contrast, bioenergy heat from wood residues starts at about NZ$13/GJ, almost 40% cheaper than landed LNG. “Electricity-based heat can cost as much as NZ$50-NZ$60/GJ for most users, and upwards of NZ$35/GJ even for very large users. This only reinforces the need to use the right fuel for the right application. “There’s no shortage of biomass for energy use,”Mr Cox said. “In addition to forest and processing residues, New Zealand exports 20 million tonnes of low-grade logs annually, mainly to China. “In energy terms this is a lot – it represents 160m GJ of gas. “For context the whole North Island only uses about 25m GJ of gas. You would need less than 20% of those logs to meet that demand, and could use the rest to make biodiesel, increasing New Zealand’s energy resilience and sovereignty.” Instead of pursuing costly LNG imports or building more power stations under the ‘electrify everything’ model, Mr Cox says policy should support fuel-use efficiency and value creation. “Bioenergy from wood residues doesn’t require growing energy crops. It’s a by-product of forestry and wood processing, creating jobs and new business. Integrating forestry into farms improves land management and farm viability. “Importing LNG does none of this and only adds cost.”
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Wood Mizers on The Block
As The Block 2025 begins airing, viewers will see a lot of new twists unfold this season. For the first time, The Block features completely new homes within a brand-new Daylesford housing estate focused on sustainability. Source: Timberbiz Plus, change came with Bunnings joining as the official DIY partner and established an onsite mini store and nursery. Another new addition that Australia’s popular renovation show added to the series was giving the Blockhead teams a hands-on experience with wood processing equipment. Wood-Mizer, manufacturer of machines to build “From Forest to Final Form,” had a fully hydraulic sawmill, a board edger, and a splitter for making firewood on site for the contestants to showcase their creativity, craftsmanship, and resourcefulness using the natural beauty of wood. The partnership opportunity for The Block and Wood-Mizer happened quickly. Just before starting to film, the two companies came together and found a win-win scenario. With four locations around Australia, including one in Victoria, Wood-Mizer had the resources to bring all the equipment on location and train host, Scott Cam, who would in turn assist the contestants: Britt and Taz, Emma and Ben, Han and Can, Robby and Mat, and Sonny and Alicia. With just a few hours of training, Mr Cam explained, “[Taz] was able to start cutting that himself, which is a testament to this machine and how easy it is to use.” The Wood-Mizer bandsaw sawmills also meet sustainability standards with the ability to produce more boards from every type of timber because of the thinness of the blade. Compared to circle blade timber machines, bandsaw sawmills get 30% more boards from one log and produce less waste. “I hadn’t seen a Wood-Mizer operating before the show…but this is a game changer for me. It’s absolutely fantastic — beautifully engineered, strong, and handles the Australian bush conditions very well,” Mr Cam said. Another favourable twist came when Wood-Mizer customer, The Wood Project, owned by Sarah and Nath Worth, learned that The Block builds were focused on sustainability. Their company, located in Hastings – just two hours from the housing estate, specializes in sustainable and reclaimed timber which is sawn on their Wood-Mizer LT50 sawmill. This model is one of 14 different models. Wood-Mizer’s sawmill line starts with personal, entry level and expands up to professional level, like the LT50. The husband-and-wife team picked some of their prize live edge, wide slabs, and premium Australian hardwood pieces to supply for the show, including Mountain Ash, Messmate, and Sydney Blue Gum, along with salvaged Cypress Macrocarpa and dense ex-power pole Ironbark. Each piece was chosen for its character, durability, and uniquely Australian story. “At The Wood Project, we specialise in giving new life to recycled timber,” Ms Worth said. “Our custom timber pieces are crafted with care, offering unmatched character and longevity. Nath and I felt strongly that The Block homes needed locally sourced and sawn wood that had a sustainability story. We can’t wait to see that story unfold.” Wood isn’t just showcased inside the homes. In keeping with Daylesford’s commitment to wellbeing and natural beauty, the producers of The Block, in collaboration with Brenchley Architects, thoughtfully designed the homes amidst a historic row of cedar trees protected and preserved to create a tranquil atmosphere along a private, no-through street. “Being part of The Block, this season felt like a natural fit,” said Alexa Vorster, Marketing Manager at Wood-Mizer. “Our customers love living surrounded by timber, inside and out and it’s something we see reflected in their own projects that started with wood sawn on their Wood-Mizer. Over our 40-plus year history, customers have shared everything from handcrafted furniture and cozy cabins to large-scale homes and barns, all inspired by their connection to Live the Wood Life.” While Season 21 of The Block will give viewers a sense of how a sawmill is used to produce wood elements for home projects, there are businesses all over Australia using Wood-Mizer machines as a profession and livelihood. To learn more about the machines that were behind the scenes on Season 21 of The Block: The LT35 Hydraulic Sawmill that makes it easy to lift, turn, and cut logs into usable timber with minimal effort The EG300 Multirip Board Edger is a high-speed board edger that smooths and straightens rough wood into clean, finished boards. The high-performance, hydraulic FS350 Firewood Splitter makes splitting wood simple with the ability to produce firewood For more information about Wood-Mizer’s product range and involvement with The Block, visit https://woodmizer.com.au/the-block
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Cultural agility program for better ties to First Nations in Queensland
Timber Queensland has launched Cultural Agility Program: Building on the Strengths of Our Stories, a vital initiative designed to deepen understanding of Indigenous perspectives across Australia’s forest and timber industries. Source: Timberbiz Held in partnership with respected First Nations leaders and cultural educators through Regional Economic Solutions, the two-day program offers a unique opportunity for industry professionals to embrace an exploration of Australia’s shared history, current realities and pathways toward reconciliation and meaningful engagement. “This is about building respectful relationships and recognising the value of Indigenous knowledge in shaping a shared sustainable future for our industry,” said Timber Queensland CEO Mick Stephens. “Understanding cultural context isn’t just the right thing to do — it’s an essential first step to understanding the legacy of past historical experience and the ongoing impact on indigenous people and the importance of trust,” he said. The program creates a safe yet robust environment where participants are encouraged to move beyond rhetoric toward genuine understanding and collaboration. “This shared understanding can enhance workplace inclusion, strengthen community partnerships, and support land stewardship aligned with both traditional and contemporary practices,” Mr Stephens said. Participants will take part in traditional yarning circles and powerful storytelling to discover Aboriginal and Torres Strait Islander ways of knowing, being and doing. Mr Stephens said the Albanese Government’s recently released National Timber Fibre Strategy acknowledges that our industry has much to learn from First Nations Peoples, particularly in forest management and Caring for Country. “There is a sector-wide commitment to increasing understanding and engagement; respectful and appropriate engagement is the starting point. “Timber businesses that embrace cultural agility are better equipped to work collaboratively with Traditional Owners, unlock new opportunities in land management, and contribute meaningfully to shared outcomes,” he said. The program will be held in Brisbane on 9-10 September 2025; more information is available at www.timberqueensland.com.au/events
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Grower research roundtable
Forest and Wood Products Australia is preparing to host a Grower CEO Research Roundtable on August 6 and 7 at the Crowne Plaza Melbourne. This strategic event will bring together key industry leaders to align on future research priorities. Source: Timberbiz FWPA’s Grower CEO Research Roundtable will build on this momentum by bringing the sector’s leaders together to set the future research agenda. The roundtable will include CEOs from across the grower network. Under the guidance of FWPA’s Jodie Mason and Sarah Nolet from Tenacious Ventures, the event will focus on identifying research priorities to address industry challenges and unlock new opportunities for forestry innovation. The workshop aims to build consensus on the highest priority research needs and the most impactful opportunities, ensuring future investments are aligned with industry goals. Leaders from AFWI and AFPA will attend as observers, supporting broader collaboration across the sector. The Grower CEO Research Roundtable is another example of FWPA’s role as a connector — bringing together industry, researchers, and government stakeholders. By enabling open dialogue and strategic alignment, FWPA is helping to ensure that future research is both relevant and actionable. The roundtable also builds on initiatives like the Grower Research Advisory Committee (GRAC), which has shown the value of cooperative research in delivering results for the sector. By bringing industry voices to the table, FWPA is ensuring that RD&E remains grounded in real-world challenges and opportunities. This collaborative approach not only supports innovation but also drives a more sustainable, profitable future for Australian forestry.
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New Code of Practice to improve safety in log transportation
The National Heavy Vehicle Regulator has released a new Code of Practice focused on assisting industry to improve safety outcomes in the transportation of logs. Source: Timberbiz The new Log Haulage Industry Code of Practice (LHC) provides guidance for businesses involved at each level of the forest log haulage task. The Australian Forest Contractors Association has welcomed the release of the new Code of Practice. “Safety is the number priority for all of us in the timber industry. Having this Code to provide guidance for everyone within the Chain of Responsibility is a practical development in a complex operating and legal environment,” AFCA CEO Tim Lester said. “Importantly the Log Haulage Code is not a compliance document, and it does not create any new obligations. It does step through the stages of log haulage operations to describe key risks that may need to be addressed and propose steps that businesses could take in response depending on their role in the chain. “AFCA worked with the NHVR and other industry partners to make sure contents of the Code was relevant to industry and the advice it provides is practical. “There are considerations at every stage of log haulage activities, from contracting and scheduling, route planning and navigating forestry and public roads, through to receival and delivery. “By working together, we can make sure we protect drivers, other road users, trucks and loads to make sure haulage is both safe and efficient and so everyone gets home safely at the end of the day. “Our thanks to all AFCA members who provided input and guidance for the development of the Code. We will continue to work with NHVR and forest services business to increase awareness of the Code and opportunities to mitigate and address risks,” Mr Lester said. Acting Chief Safety and Productivity Officer Kelli Walker said that after several years of development, the LHC offered a practical guide for anyone conducting business in the forestry sector. “We’re extremely pleased to release the LHC after working closely with the Australian Forest Contractors Association (AFCA) and the Australian Forest Products Association (AFPA),” Ms Walker said. “These associations, along with industry representatives, stakeholders and vehicle and equipment manufacturers, helped to recognise key issues in log haulage, such as the risk of vehicle rollover, and load loss. “This new Code strikes a balance between detailed recommendations and practical information, to help an industry which operates in many different environments, with different kinds of products.” The LHC provides information and guidance for any operator whose business: Owns a forestry area where logs are harvested, Harvests or stockpiles logs for transport, Loads, operates or contracts heavy vehicles to transport logs, or Manages a facility such as a mill where logs are delivered. Ms Walker said with heavy vehicles forming an essential part of the forestry industry, the NHVR and its partners were committed to helping improve safety outcomes. “Achieving both productivity and safety in the log haulage industry means every person and business is required to play their role in mitigating and addressing risks,” she said. “It’s fantastic to know the LHC will assist industry to do so and help ensure all workers get home safely at the end of the day. “Thanks to everyone who contributed to the LHC’s development or assisted in providing feedback to help us reach this important milestone.” The NVHR will work further with industry associations and participants to roll out information and awareness of the Code, in a project funded by a Heavy Vehicle Safety Initiative grant.
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Victorian sawmills at reduced capacity and laying off staff
Victorian sawmills are operating at reduced capacity and laying off staff amid weakened demand for timber products on the back of a slowdown in housing construction. Source: The Financial Review Andrew White, the chief executive of the Victorian Forest Products Association, said while the industry had been initially braced for significant supply shortages to meet increased housing demand, they were now struggling to sell their timber. “Some mills have had to downsize their workforce, and they haven’t been able to operate at full capacity,” White said. “There aren’t as many houses being built, and the wood is not going out … We can be doing a lot more, but a lot of these issues are out our control because of the market dynamics.” The Victorian executive director of the Property Council, Cath Evans, called on the state government to reduce taxes and remove red tape, saying the property sector was hamstrung by a “punishing tax regime, economic headwinds and declining investor confidence”. The VFPA said the state’s housing market slump was putting pressure on timber growers and producers, with some of the mills now running only four days a week, and one major sawmill running at 75% capacity. Two years ago, research for Forest and Wood Products Australia found demand for sawn softwood, such as pine timber for house frames, would be three times domestic production capacity. “We have this ironic situation of surplus pine products,” White said. “We want more houses to be built but build times for houses has gone from six months to 10 months, and there are well-documented shortages in supply chains and trades [people], and over regulation of issues at a local level.” White’s parent company, the Australian Forest Products Association, in a submission to a parliamentary inquiry last year revealed domestic timber sales had fallen by more than 500,000 cubic metres since the COVID-19 pandemic, and that the industry had the capacity to supply an additional 50,000 timber frames for new homes annually. The VFPA has also blamed the Allan government’s Big Build infrastructure agenda for drawing apprentices away from regional Victoria to work on major projects in Melbourne, as well as “lengthy and complicated” planning and building approval processes that delay housing developments. A total of 14,804 dwellings commenced in Victoria in the three months to March, according to Australian Bureau of Statistics data released this month, the highest of any state or territory and a 17% lift on the December quarter. Although Victoria recorded the highest number of commencements in the 12 months to March, its 3% annual growth was slower than NSW (6%) and Queensland (9%). The number of houses under construction in Victoria in the March quarter was 22,817, a decline of 2% on the previous quarter. In the 12 months to March, 15% fewer homes were being built compared to the previous year. Housing Industry Association senior economist Tom Devitt said home building was starting to pick up and the impact would soon flow through to the rest of the supply chain. “Early in the pandemic when there was an enormous surge in new homes, it led to a progressively larger and larger demand every step along the supply chain,” Devitt said. “When the demand moderates, the correction becomes even bigger at each stage of the supply chain. Most of those up and down the supply chain have played out but there’s a chance there’s still some of that [continued downturn] happening, especially in products like timber, which was impacted so acutely during the pandemic.” Evans, speaking for the Property Council, said planning approvals needed to be sped up. “These factors have led to project delays and a slowed pipeline, which in turn can impact demand for key materials like timber,” he said. “This is an example of the flow-on effect delays in housing supply are having on the broader sector. To unlock short-term growth in housing construction, we need a sharper focus on delivery.” A Victorian government spokesman said ABS data showed the state was leading the nation on building and approving homes, and the government had fast-tracked almost 5000 homes since it expanded the Development Facilitation Program to include residential developments that had 10 per cent affordable housing. Evans, speaking for the Property Council, said planning approvals needed to be sped up. “These factors have led to project delays and a slowed pipeline, which in turn can impact demand for key materials like timber,” he said. “This is an example of the flow-on effect delays in housing supply are having on the broader sector. To unlock short-term growth in housing construction, we need a sharper focus on delivery.” A Victorian government spokesman said ABS data showed the state was leading the nation on building and approving homes, and the government had fast-tracked almost 5000 homes since it expanded the Development Facilitation Program to include residential developments that had 10% affordable housing.
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Opinion: Allan Laurie – good domestic sawmill demand for NZ
The commercial forestry sector remains in good heart with very good domestic sawmill demand and export sales to China and India chugging along. Prices have remained flat to very slightly up in Export logs which is positive for this time of year. In Canterbury at least, we have high enquiry levels from local sawmills looking for more logs and also wanting some different grades and price levels in the mix. It is excellent to be taking enquiries around pruned logs, confirming strong demand in the appearance grade lumber sector. My spies tell me things are quieter in other regions. China is softening in terms of daily usage, now hovering close to 50,000 cubic metres compared to 60,000 last month. This drop is entirely expected as the summer heatwaves ensure lower productivity and shorter days worked. Inventory has started to increase again, currently sitting at around 4.1m cubic meters, which is not particularly healthy. For readers who follow my report and review others, I am sometimes asked why, for example, I report inventory at 4.1mill m3 and others will be reporting a much lesser number. The difference is my numbers reflect all softwood logs across all ports. Others sometimes only report Radiata pine and some also exclude minor ports without explanation. Prices in the wholesale sector in China are weakening, confirming demand across the eastern seaboard is also weak. Movements have been slight thus far, but sufficient to ensure it is unlikely we will see the price of NZ logs landed in China increase in the near term. Most commentary suggests it with be mid/late Q3 (September) before autumn sales will pick up with any positive movements in prices likely to remain on hold until then. At the same time, the delivery rate of NZ logs to China has also declined, with winter, including heavy rain events impacting productivity. Current log prices are at annualised lower levels also ensuring harvest of forests at some distance from ports remains subdued. The antics of the illustrious Donald Trump continue to impact trade which again is likely to negatively impact demand and therefore pricing. It is great to see, despite the stupidities, wood fibre markets internationally are actually quite stable. It is also good to see an increasing number of Americans are realising their election foley which we can only hope leads to Donald’s reins continuing to be pulled in. For the moment CFR prices (cost of log landed in US$ per m3) for NZ Logs in China are stable to rising slightly. Latest commentary suggests a general movement from US$110 to US113/114 per cubic metre A grade basis, with the quality of cargo and percentages of long lengths impacting final negotiations. It is looking like there will be 37 – 40 shipments from NZ in July which is five to six less than normal. India is continuing to emerge from a market low point with small price increases being the order of the day. There has also been a crazy seller in this market buying high in NZ, selling low in India. The market generally considers their days to be numbered and none too soon for the rest of us. Prices in India for the same A grade basis logs sits around the low to mid US$120s per m3, but sea freight rates are also much higher. Bottom line is, both markets are yielding very similar net returns to NZ forest growers at the wharf gate. Shipping remains in an uncertain space with the recent red sea sinking of a bulk vessel by the Iran backed Houthis rebels making everyone nervous, particularly for ships heading to India. The Houthis say that any Israel-linked ship is a target including US and UK warships, but they have also attacked the ships of many nations with no connection to Israel. For the moment shipping costs are stable but availability for some destinations could become an issue. As always, please remember the thoroughly important message, “despite the challenges, it remains, as always, fundamentally important, the only way forward for climate, country and the planet, is to get out there and plant more trees”. Allan Laurie, Managing Director, Laurie Forestry. Laurie Forestry is a leading Australasian forestry company that provides consultancy, management and marketing services to forest owners, farmers, sawmills and manufacturers.
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