Tough times continue for sawn timber in Australia

The tough market for sawn timber is expected to continue over the next 15 months. Australian producers face increased pressure from imports as a result of the high Australian dollar and a global surplus of timber. This comes at a time when the Australian housing market is rather sluggish and Australian producers have the capacity to supply much of the domestic market.

According to the recently released report, Sawn Timber in Australia: 2012-2026 by BIS Shrapnel, 2013, conditions will continue to present challenges for Australian saw millers, with a weak housing market and strong import competition.

However, there is light at the end of the tunnel. BIS Shrapnel forecasts indicate the residential construction sector will grow particularly strongly in 2014 and 2015, and sawn timber demand is expected to increase more than 10 per cent over the next three years.