Forest products

SANTIAGO -(Dow Jones)- Increasing demand from China and other emerging Asian markets will drive Chile's forestry industry in coming years, said a panel of industry executives Tuesday.

Chile's forestry sector, which produces wood boards, plywood and pulp, accounts for 8% of global forestry exports. It is also the Andean nation's second-largest exporting industry, just behind mining, and contributes 3% of the country's gross domestic product.

Recent data on the Brazilian timber industry reveals that exports of timber products from the country (excluding pulp and paper) were at US$206 million in June, up a healthy 19 per cent on the previous year.

During the same period, exports of tropical sawnwood fell in both volume and value terms, however, to 38,500 cu.m and US$17.9 million, a decrease of 4.7 per cent in volume and 3.8 per cent in value terms on 2009.

As European paper-making continues to falter, the Asian superpower is growing capacity at a great rate.

Due to the global recession that began in the second half of 2008, China’s total log imports declined in 2009 to 28.1 million m3 (-5.1%). The unexpected turnaround in the Chinese economy, starting in Q2/2009, significantly moderated the falling trend in Chinese log import volumes for the year. China’s log imports were valued at about US$4.1 billion, down 21% by value from 2008. reports International Wood Markets Group, The total decrease in log imports from 2007 to 2009 was a whopping nine million m3 - a staggering 24%.

The Investments in Forest Industry Transformation (IFIT) program was launched today by the Government of Canada.

The $100-million program will help to expand opportunities for Canada’s forestry sector through the development of innovative projects and technologies.

The Honourable Christian Paradis, Minister of Natural Resources, launched the program today in Ottawa and made a call for proposals that could receive IFIT funding.