Wednesday, August 8, 2012

Imports pose temporary threat for Australian sawn timber producers

The Australian sawn timber industry is experiencing a temporary threat from imports as a result of a strong dollar and a global surplus of timber following the GFC. However, imports are not a significant long term threat, as they are still well below the historical levels of 20 years ago. In the last two decades there has been a significant reduction in sawn timber imports, as domestic production capacity has expanded.

At the same time, exports have grown rapidly in the past five years. By 2014, international and domestic conditions are expected to be more favourable to producers as the dollar declines. Global demand for timber will also improve in response to a stronger housing market in the US and strong demand in Asian markets.

Contact: Bernie Neufeld