The ITTO’s bi-weekly market update newsletter contained an interesting lead story on surging demand from China. From 2001 to 2010, log imports doubled from 17 million cubic meters (m3) to 35.4 million m3.
... With the international supply of commodity wood products falling and with rising domestic demand analysts expect to see a strong upward pressure on timber prices in the domestic market.
Interestingly, the article predicts that by 2015 the deficit of timber will be 180 million m3 - an increase of 550% increase over the amount imported in 2010. Meanwhile, log imports from Russia increased 12% by volume and 40% by value just in the first half of the year.
The report did not cite its source of information, but even after discounting the projected deficit by 50%, the growth in future demand and prices could be significant.
That’s positive news for the value of the timber being produced on Planting Empowerment’s plantations.