Page 1

Vol 17 No 2

June 2011

ISSN 1173-5899

Rugby in heaven while world holds breath over global climate change

Rank ‘devolving Carters as refinance deadline looms Chinese forestry company Stock Exchange Woes Arauco’s forest offshoots lift income for Angelini Group CMPC investing US$220M on bioenergy developments

Southern Hemisphere Forest Markets Market data by country: Chile, New Zealand, Australia and South Africa MAF log prices

June

Pages 8-11 Page 12

© The Southern Hemisphere Forest Industry Journal is published by Trade and Media Services Ltd. Street address: 5 High Street, Rotorua 3201, New Zealand. Mail address: PO Box 6215, Whakarewarewa, Rotorua, New Zealand Tel: 64-7-349 4107; Fax: 64-7-349 4157; Email: info@southem.com; www.southem.com Editor and Director: Michael R. SmithForest Industry Journal Vol. 17 No. 2 1 Southern Hemisphere 2011


Rugby in heaven while world holds breath over global climate change By Mike Smith Not long after the Rugby World Cup kicked off in New Zealand another event with global consequences will be held in South Africa. Rugby, for who don’t know, is football with an oval ball that is passed through the hands from player to player. Unlike soccer, kicking is reserved for those moments in a game where a side is either desperate to achieve a position on the field or has an attempt to gain extra points. Also, unlike soccer, the latter penalty or conversion is taken by kicking the ball over the goal and not into the back of it. Rugby is the chief sport of New Zealand and a top sport in other southern hemisphere countries like South Africa and Australia as well having a strong following in Argentina and Uruguay. Pacific Island nations have a particular passion for rugby, playing with the kind of flare and vigour that makes them somewhat unnerving opponents for those teams playing the game in a more classical manner. The Pacific islands’ play-making skills have made themselves felt in some other southern hemisphere countries, which has marked them out from their more conservative counterparts from the northern hemisphere. Whether this makes teams from the South better than those from the North better is a much debated point between fans and the kind of media pundits littering the scene. Whichever team wins the competition will have bragging rights as the Rugby World Cup Champions for the next four years. The early forecasts were for hosts New Zealand to generate NZ$280 million in ticket sales for a cost of NZ$310 million. A more recent report from the Centre for the International Business of Sport at Britain’s Coventry University suggested the country could earn an extra NZ$1.44 billion (US$1.21 billion) by the end of the decade as a result of increases in tourism, sponsorship and business development. ( Another kind of world cup will be held in the southern hemisphere between 29 November and

9 December 2011, when South Africa will be hosting the 17th session of the Conference of Parties of the United Nations Framework in Climate Change and the seventh Conference of Parties serving as the meeting of the Parties to the Kyoto Protocol (COP17/CMP7). The prize? Potentially, some would say, avoiding the end of the world as we know it. The economic benefits of the Durban COP17 event, should the participants get it right, will make the Rugby World Cup spin-offs look like chicken feed. One important similarity is that the Pacific islands will play an important side-bar role at COP17, being as they are the countries and territories already starting the have the impacts of climate change visited on their shores. The proponents of the Durban event are boosting as much as their rugby counterparts. Christiana Figueres, Executive Secretary United Nations Framework Convention on Climate Change (UNFCCC) says on the event’s web site: “By mastering the challenging Durban agenda, governments can take a significant step towards a climate change regime that delivers on the ground.” Maite Nkoana-Mashabane, South Africa’s Minister of Foreign Affairs and President-Designate of COP 17/CMP 7, says: “It may seem impossible, but working together we can all rise to our responsibilities.” The key words here may be “significant step”, “impossible”, and “working together”. The similar event held in Copenhagen in 2009 made some progress apparently but left participants and observers deflated – The Guardian newspaper’s Mark Lynas was not alone when he labelled it “a disaster”. One of the UN-based programs which seems to have taken off in the period between Copenhagen and Durban known as REDD projects. REDD+ is part of the UN-REDD Programme, which stands for “United Nations Collaborative Programme on

2 Southern Hemisphere Forest Industry Journal Vol. 17 No. 2

Junio 2011


Reducing Emissions from Deforestation and Forest Degradation in Developing Countries”. See UN-REDD web site for more information. The UN-REDD Programme does not purchase credits, however one option is to link REDD projects in developing countries to carbon markets in developed countries. Richard Hayes of Environmental Intermediaries & Trading Group Ltd highlights reafforestation projects using the REDD program methodology as a key area where the New Zealand-based company has been extremely busy in 2011. “We have people and projects being commissioned in that area (REDD) now, in Africa and the Pacific Islands, and so that sector is growing pretty rapidly.” The growth initially came from a couple of projects being verified and validated under the voluntary carbon standard (VCS) and the interest in getting positions with REDD by one of the big United Kingdom climate funds and a couple of government agencies, such as the Norwegian Government which is investing a large amount of money toward REDD. As part of the VCS methodology, plantation forestry has been accepted as part of a REDD project and the issues of permanence and risk associated with the fact around harvest intentions is deal with in the methodology. “So there’s a general level of acceptance of the robustness of the VCS REDD methodology in particular, and the consequence of that is that the buyers are feeling more confident in those projects. As a result of that, at last we are seeing a lot of interest from the European market in particular.” A number of queries were raised about REDD projects in the year or so after the UN implemented the REDD concept in 2008. Headlines in 2009 included: “More questions than answers on carbon trading in PNG [Papua New Guinea]” and “New research questions value of REDD project in Sumatra”. Hayes says he believes REDD projects EITG is involved in are relatively robust. June 2011

EITG’s Richard Hayes - REDD projects are now relatively robust. “The forest conservation projects in particular are very well supported in one form or another.” Support was coming particularly from Europe and particularly from the supermarket chains for REDD+, the further extension of the program which also involves socioeconomic and community issues and is broader than the biodiversity issue. “[REDD+] is certainly getting a lot of interest and acceptance by the entities that would probably see it becoming more mainstream and being part of what emerges post-Kyoto 2012 and likely to be accepted in the European Community trading scheme. So certainly, REDD is becoming more widely accepted.” As a director of a company with a vital interest in this area he could be expected to attend the COP17 conference in Durban. However, Hayes does express some misgivings about the value of attending such conferences from a business viewpoint. “These things are an interesting structure, because our organisation, being commercial, it’s very difficult to interface with the discussions around regulatory structures. I think the main benefit of being there quite often is to be able to demonstrate

Southern Hemisphere Forest Industry Journal Vol. 17 No. 2 3


to people who are expounding certain strategies that they are able to be implemented in real terms.”

job” not unlike other government economic reforms over the past 20 years.

Like most “global event” organisers, the Rugby World Cup’s boosters projected hundreds of millions of people would tune into the matches. It’s sometimes thought that such events are better viewed from afar, online or via TV. So is that what it is like to watch climate change negotiators in, for want of a better word, action?

“The basis of the scheme is that it is the most efficient way of New Zealand to reduce emissions and meet its Kyoto commitment. The scheme puts a price on emissions from sectors like industry, transport and electricity, and provides credits for [plantation] foresters who absorb emissions with new plantings.”

“I think that’s a very good analogy,” Hayes says. Smith says the most complex parts of the scheme “Particularly the analogy being that you don’t know are the allocations provided to balance the playing anything about the game. You don’t know anything field for sectors which high emissions but whose about the rules; you don’t really know the players overseas competitors do not face carbon charges, but there are a lot of things gothe compensation paid out ‘What occurred around the and ing on. for loss of property rights for main event sometimes be- pre-1990 forests and fishing “There are a lot of ancillary quota owners. events wrapped around it so came more important than people are selling you jerseys and the main event itself, and The Minister says a sharp various accessories and perhaps switch from deforestation to aftrying to engage you in what’s was like the “engine room” forestation in 2009 reflects the been happening in the stadium where the most important significant costs of permanently or what is about to happen in the removing forest and the income stadium but at a more remote lo- discussions were going on.’ stream for new forests from the cation.” ETS. What occurred around the main event sometimes became more important than the main event itself, and was like the “engine room” where the most important discussions were going on. “So they are an interesting structure and I know from past experience they have opportunities to create considerable gains or otherwise waste a considerable amount of time and air.” Australia’s bid to introduce a carbon pricing scheme has met with considerable opposition, not least from plantation forest owners who feel sidelined as the same time as special considerations are made for the agriculture sector and other industries. The Australian plan has come at a time when the already embedded New Zealand Emissions Trade Scheme (NZ ETS). A review of the NZ ETS was released in June 2011 and Environment Minister Nick Smith notes in the Foreword that “The implantation of the ETS over the past year has been a complex

“This change has had a dramatic impact on New Zealand’s net emissions and is essential to meeting our Kyoto obligations over the period 2008-2012.” In spite of this positive note, new planting rates in New Zealand do still remain stubbornly low, although this may no longer have much to do with the ETS but also plain economics. Smith says New Zealand is on target to meet its Kyoto obligations. “Our net emissions are down for two consecutive years, the first time since 1990. Without the scheme, the New Zealand taxpayer could have faced a substantially greater cost of meeting New Zealand’s obligations through paying for increased emissions.” As one whose company has to operate within the scope of the NZ ETS and is also fully involved in the international carbon credit marketplace, Richard Hayes has a good overview.

4 Southern Hemisphere Forest Industry Journal Vol. 17 No. 2

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“I think there are a lot of elements of the NZ ETS that have gone extremely well, and I think the Australians have got an opportunity to learn, not from the mistakes that we made but from some of the issues that were brought up along the process and have been dealt with.”

There were two types of foresters:

Hayes says the NZ ETS, because its structure was with certain fixed boundaries based on fixed boundaries, for example, NZ$25 cap [per ton of carbon] as one of the traders said it was like a free call option of NZ$25, there were some elements that created distorted outcomes.

• Post-1989 foresters who are effectively able to opt into the ETS and are not required to do so.

“That was always going to be the case when you create something with operational boundaries. It’s not unusual for humans to test the boundaries for all sorts of reasons.”

“It appears that effectively neither group has opted in, in any great volumes at this stage.”

‘I think the Australians have got an opportunity to learn, not from the mistakes that we made but from some of the issues that were brought up along the process and have been dealt with.’

An example of a “perverse” outcome was where some emitters, such as oil companies and energy groups, had simply added the $25 on to the cost of their products to consumers, even though the actual carbon price for NZ Units (NZUs) had fluctuated between $22 and $13.80 a ton.

“So I think that what happened to some degree is that the emitters have simply charged us $25 and all surrendered credits for their obligations to 2010, so there’s been a perverse outcome in so far as we’ve all paid for the emission cap but I can’t think of anybody who has paid $25 for any sort of carbon credit through the existence of the ETS at this stage.” Asked whether this was simply a case of winners and losers created by a supply and demand situation within the NZ ETS system. Hayes says that the government review committee’s preliminary report had made the comment that only 25% of the expected forest-based carbon credits had already been issued. “I believe from the other numbers that I’ve seen that, for example, the number of participants in the NZ EUR that a lot of foresters have stayed away from registering.”

June 2011

• Those managing pre-1990 forests subject to compulsory registration, who are entitled should they register by the end of the year for compensation for a change of land use.

Hayes says from a supplier’s perspective, if everybody had opted in, it could be expected that there was going to be a surplus pre-2012 of forestbased credits in comparison with the expected volumes of credits that needed by the various emitters.

“Of course, that dynamic has changed completely as soon as the price of international credits has come down below the $25 threshold.” Certified emissions reduction credits (CERT credits), where credits are earned from a new technology project or emissions reduction strategy in a developing country, are permitted in the NZ ETS. “So last year in December, when these CER credits dropped below NZ$20, from the point of view of supply, there was effectively an infinite supply of credits of that type in the NZ ETS and certainly they were cheaper than NZUs and they dragged the price of the NZU down.” The CER-type of credits can be bought on an option basis and are traded in hundreds of thousands a day and millions every month and were available for purchase every day for delivery on 31 March 2012. “So you don’t even need to pay for them and have holding costs from, say, today until 31 March.”

Southern Hemisphere Forest Industry Journal Vol. 17 No. 2 5


Figure shows types of units surrended during the first surrender period.

NZ AAUs 3.17%

CERs 1.6%

NZ$25 Fixed Price Option 0.45%

Other NZUs 30.78%

Forestry NZUs 64%

Report on the New Zealand Emissions Trading Scheme, June 2011.

The CER credits had brought a completely different element into the market and Hayes says he believed many emitters bought a large number of CERs in December 2010 and a large number were sold when the price of CERs went above $25 again and the market for NZUs crept up and peaked around $22.

people to transact, which was a positive. At a forestry carbon conference in Auckland, New Zealand, the comment was made about the number of companies which had effectively been paying the $25 charge realised they could go on the market and buy these credits for less and had been able to start handling their own liabilities.

“Those emitters were simply cashing up their CERs and buying NZUs from $18, $19, $21, making themselves an arbitrage profit.” This theory was illustrated by figures showing that few CERs were surrendered, so there was an “enormous opportunity for arbitrage”.

“So that’s probably a very good example of the market working very well. So we are seeing more participants, more information and more activity. The ability to have these CERs has created some liquidity and opened up the ability to move in and out of the market on an international basis. I think the system is evolving quite well.”

Hayes gave the example of a forest-owner client who had earlier decided to sell NZUs, not worry about what would happen at harvest-time regarding units, and instead invested in a commercial property and was able to buy a record number of CERs for NZ$13.50 and subsequently sell them for NZ$65,000 cash. “He’s feeling very pleased with himself because he is not worried about any harvest liability, because he has repurchased credits and has executed a simple arbitrage transaction and made $6.50 a credit in his pocket.” This was in some respects a sign of a functioning market. Even though there was an over-supply, there were also some drivers causing

Hayes does have a criticism that the advice early on the NZ ETS system’s evolution came from forest managers. “I think it was just a bit unfortunate that forest managers took it upon themselves to give what amounts to financial advice and give advice on market which, in hindsight, some have proved to be right and some have proved to be horribly wrong.” Hayes says strategies were still evolving in how best to deal with forest owners’ risks in terms of carbon credits. A lack of understanding of the risks and risk mitigation strategies are holding people back from becoming involved. However, this was to some extent a factor due to this being a new market.

6 Southern Hemisphere Forest Industry Journal Vol. 17 No. 2

Junio 2011


Southem News Rank devolving Carters as refinance deadline looms

Arauco’s forest offshoots lift income for Chile’s Angelini Group

New Zealand group Carter Holt Harvey (CHH) is reported to be “devolving” with the planned sale of its New Zealand businesses. The New Zealand Herald reported CHH’s owner, Rank Group's Graeme Hart, wants to focus his attention on his substantial United States and European assets.

Income forest products helped boost the gross profits of Chile’s Angelini Group by 57% to US$782 million to March 2011. The result was helped by a better result from the forest sector, which saw price rises in the businesses of pulp, panels and sawn wood in the first quarter of 2010.

CHH, with a history dating as far back as the mid- to late 1800s, now comprises three core businesses - packaging, pulp and paper, and building supplies.

Copec Group Companies grew a 127% annually over the first quarter of the year, resulting from a strong growth in sales, particularly pulp products, according to a company statement.

Hart bought the company, then one of the country's biggest, for NZ$3.3 billion in 2006 and quickly sold its substantial forest estate for NZ$1.6 billion, the NZ Herald reported. He has since sold property, worth about NZ$300 million, and dairy farms, worth about $200 million. He sold CHH's Australian and NZ folding box business to Australian packaging company Colorpak in October.

The profit for Angelini Group reached the US$295.3 million compared to the US$130,2 million obtained in the same periodof 2010.

Rank is now seeking to sell CHH's pulp, paper and packaging assets in Australia and New Zealand before a refinancing deadline in December 2011, market sources are reported as saying.

Chinese forestry company with NZ and Canada interests in Toronto Stock Exchange woes Trading in Sino Forest was halted in Toronto recently after shares in the Chinese forestry group plunged more than 20 per cent following a highly critical research report by Muddy Waters, a research firm founded by short seller Carson Block. Financial Times said in a report that Sino Forest is one of dozens of Chinese companies listed on foreign stock exchanges – three of them in the forestry sector – that have been targeted by short sellers in recent months and have had their shares suspended from trading. Sino Forest has also been involved in forestry deals in New Zealand and Suriname. June 2011

“The gross gain increase was contributed mainly by divisions of Celulosa Arauco y Constitución, by US$403 million; Compañía de Petróleos de Chile Copec, by US$319 million; Abastecedora de Combustibles, by US$36 millones; Igemar, by US$12 millones and Sonacol for US$11 million,” the company said in the statement.

CMPC investing US$220M on bioenergy developments The Matte family’s big forest industry group CMPC is plans to invest US$220 million working toward supplying energy from its own resources, as it faces higher national costs This has come about due to the group’s processes being among the most intensive industries in their energy use, Estrategia has reported. "Indeed, the energy topic is of vital importance for our operations. In 2009 the directors of CMPC approved the construction of two boilers of biomass for the generation of electricity in pulp plants at Santa Fe and Laja, both located in the region of the Biobío," said the general manager of CMPC, Hernán Rodríguez. “Today this construction is in the middle of process and means an investment of US$200 million for the company, " he said.

Southern Hemisphere Forest Industry Journal Vol. 17 No. 2 7


Chile exports and prices 80.0 70.0 60.0 50.0 40.0 30.0 20.0 0.0

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

10.0

2007

2008

2009

2010

2011

Pine lumber , woodchip, plywood price indices (100 at 2003) 250.0 200.0 150.0 100.0 50.0 0.0 2010

Plyw ood

Q1

Woodchips

Q4

2009

Q3

Q2

Q1

Q4

Lumber

Q3

2008

Q2

Q1

Q4

2007

Q3

Q2

Q1

Q4

Q3

2011

Total

Chile exports of pulp products ($M f.o.b.) 350 300 250 200 150 100

0

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

50

2008

2009

2010

2011

Bleached Pulp, Fish Meal, Copper and Oil Prices 500.0

2,000.0

450.0

1,800.0

400.0

1,600.0

350.0

1,400.0

300.0

1,200.0

250.0

1,000.0

200.0

800.0

150.0

600.0

100.0

400.0

50.0

200.0

0.0

(Pulp and Fish Meal)

COMMODITY PRICES The bleached pulp price was US$727.9/m.t. in March 2011, up 13.3% on March 2010. Oil prices remained relatively static throughout 2010 but rose at the start of 2011 to reach US$107.1/b in March, 23.8% more than March 2010. The key copper price was up 21.7% in March 2011 compared to March 2010, at US$432.3/lb. Fish meal, at US$1,717.6/m.t., was up 2.5% on the previous March.

90.0

Q2

PULP EXPORTS Pulp exports were stronger in most areas, with the total value reach US$2,531 million for the 12 months ended March 2011, up 18.9% on the same period 2010. Most of this increase was due to the value of bleached pulp exports, which rose 18.7% to US$2,301 million over the 12-month period, lifting 55.0% in March 2011 compared to March 2010.

100.0

Q1

WOOD PRICE INDEX The price index for exported lumber products in the first quarter of 2011, at 88.8, was similar to Q3 and Q4 of 2010, which compared with the 120-plus levels of quarters from 2005. The Q1 2011 woodchip price index was firmer at 202.4 than the 192.7 of Q4 2010, reflecting a trend. The plywood price index, was significantly lower as well, at 65.2 in Q1 2011 compared to 125.7 in Q1 2010, again reflecting a lower trend.

Chile Exports of Pine Lumber Products ($M)

(Copper and Oil)

PINE LUMBER EXPORTS Pine lumber exports from Chile totalled US$606.4 million in the 12-month period ended March 2011, up 28.19% on the year ended March 2010. The value of exports rose in May and remained steady. March 2011 exports at US$55.5 million were 44.0% higher than the same month 2010, although February and March were similar.

0.0 2008

Source: Chile data. CopperGovernment (US$/lb.) Oil (US$/bb.)

8 Southern Hemisphere Forest Industry Journal Vol. 17 No. 2

2009

2010

Bleached pulp (US$/T.M..)

2011

Fish meal (US$/T.M.B.)

Junio 2011


New Zealand exports, value and housing trends New Zealand lumber exports (NZ$M f.o.b.) and trend line 350 300 250 200 150 100 50 0

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 2008

2009 Pine lumber

Wood products

New Zealand lumber exports by value trend (US$/cubic metre) 400 350 300 250 200 150 100 50 0

2008

2009

2010

2011

New Zealand building consents (number by month) 3,000

2,500

2,500

2,000

2,000

1,500

1,500 1,000

1,000

500 0

500

J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M

(Houses and Apartments)

HOUSING STARTS Residential building consents issued in the 12-months ended March 2011 was 5.0% lower than in the same period 2010 at 14,611 in total. March 2011 consents were down 27.6% to 1,087 but this was up 10.5% on February 2011. House building consents were down 4.1% in the 12-months ended March 2011 compared to the same period March 2010, at 13,583. Apartment building still struggles being 15.4% in the March 2011 year at 1,028 compared to the same period 2010.

2011

Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

VALUE TRENDS After weakening off in late 2010, the dollar per cubic metre value of pine lumber product exported lifted in the first three months of 2011. A value of US$409/m3 was reached in January 2011 compared to US$376/m3 in the previous month. The February 2011 was down slightly to US$388/m3 but lifted again in March to US$393/ m 3.

2010

(All dwellings)

LUMBER EXPORTS The value of pine lumber exports from New Zealand was NZ$786 million in the 12 months ended March 2011, or 21.8% more than the previous year. As illustrated in the graph, exports dropped in January but more than recovered in the next two months to reach NZ$65.6 million in March, although this value was 3.9% lower than in March 2010.

2007

2008

Houses

2009

Apartments

2010

0

2011

All dwellings

Sources for all tables: Statistics New Zealand

June 2011

Southern Hemisphere Forest Industry Journal Vol. 17 No. 2 9


Australia housing, exports and imports Australia building consents - total private sector houses (by month)

HOUSING STARTS Total dwelling approvals in the 12 months ended March 2011 6.1% higher than in the March 2010 12-month period, at 158,000. However, private sector house approvals were down 8.9% to 100,000. The start of the year is normally a lower period but numbers in March for both total and private sector approvals were down in March 2011 on the previous March, falling 9.6% and 17.9% respectively at 13,652 and 8,524 respectively.

PAPER TRADE Paper product imports at A$2,820 million rose 13.1% in the 12 months ended March 2011 compared to the March 2010 12-month period. Imports of A$221 million in March were 10.4% higher than in February but were 5.2% lower than in March 2010. Exports of A$821 million were up 17.3%. Although imports trailed downwards in Q4 2010 and January, they lifted in February and March where they ended at A$73 million and A$74 million respectively.

14000 12000 10000 8000 6000 4000

0

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

2000

2009

2010

Total dwellings

2011

Private sector houses

Australia wood product exports & imports (A$M f.o.b.) 120 100 80 60 40

0

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

20

2008

2009 Exports

2010

2011

Imports

Australia paper product trade (A$M f.o.b) 350 300 250 200 150 100 50 0

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

WOOD PRODUCT IMPORTS & EXPORTS Wood product imports and exports were up in the March 2011 year. Exports rose 18.8% compared to the 2010 year, at A$304 million, and imports lifted 14.5% to A$1,083 million. However, the difference in exports and imports at the start of 2011 is interesting. The March 2011 imports of A$99 million were 7.0% higher than in March 2010 and were 13.1% higher than in February. At the same time, imports at A$19 million in March 2011 were 29.6% lower than March 2010 and 32.1% down on February 2011.

16000

2008

2009 Exports

2010

2011

Imports

Source for data: Australian Bureau of Statistics

10 Southern Hemisphere Forest Industry Journal Vol. 17 No. 2

Junio 2011


South African housing, exports and imports South African residential building consents by value (Rand ‘000)1

HOUSING STARTS The value of residential building approvals in South Africa in the 12 months ended March 2011 was 11.2% up when compared to the 2010 March year, at R63.6 million rands. The March 2011 figure of 2.9 million rands was 32.1% higher than in March 2010 and 33.0% higher than in February. Total building approvals in the 12 months ended March 2011 of 63.6 million rands were at a similar level to the previous year. Total building approvals of 5.9 million rands in March were 8.8% higher than in March 2010 and 17.6% up on February.

PAPER PRODUCT TRADE The paper product trade at the start of 2011 received a lift, with an increase in exports and imports. Exports for the 12 months ended March 2011 at R4,746 million were 1.7% down on the same period ended March 2010. Exports in March at R389 million were 2.6% up on March 2010 and 6.9% higher than in February. Imports of R7,0 million in the 12 months period ended March 2011 were 2.7 higher than the March 2010 year. Imports in March 2011 of R632 million were 8.9% higher than in March 2010 and 8.4% higher than in February.

June 2011

8000 7000 6000 5000 4000 3000 2000 0

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

1000

2008

2009

Res idential

2010

2011

Total

16000

160000

14000

140000

12000

120000

10000

100000

8000

80000

6000

60000

4000

40000

2000

20000 0

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

0

(Total sales)

(Exports & Imports)

South African pine lumber exports and total sales (m3)2

2009

Exports

2010

Imports

2011

Total sales

South Africa’s paper trade (Rand Million) 900 800 700 600 500 400 300 200 100 0

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

WOOD PRODUCT SALES Total pine lumber sales in the 12 months ended March 2011 at 1.4 million m3 were 5.9% higher than in the March 2010 year. Exports of pine lumber product in the 12 months ended March 2011 totalled 3.4 million m3, down 32.9% on the March 2010 year. Imports of lumber totalled 66,246 m3 in 2011, up 5.9% on the same period 2010.

9000

2008

2009

Exports

2010

2011

Imports

Sources: 1Statistics South Africa; 2South African Lumber Index, Crickmay & Associates

(Pty) Ltd and Department of Trade and Industry.

Southern Hemisphere Forest Industry Journal Vol. 17 No. 2 11


NZ Log Price Summary

March 2011 Quarter and 12-Quarter Average As at: June 2011 June 2010 (Quarter)

September 2010 (Quarter)

December 2010 (Quarter)

March 2011 (Quarter)

12-quarter average

Pruned

154-187

148-219

176-203

179-197

168

Unpruned A-grade

129-156

127-144

118-121

132-144

115

Unpruned K-grade1

115-140

109-118

106-130

130-148

106

Pulp

105-127

103-105

100-120

129-137

90

P1

125-161

125-156

130-154

128-147

132

P2

104-131

108-127

109-132

110-127

107

S1

95-102

97-103

97-100

88-98

92

S2

94-103

89-101

92-102

92-103

86

L1 and L2

73-109

71-99

73-102

72-103

77

S3 and L3

75-84

81-94

80-86

82-92

73

Pulp

44-57

44-59

46-58

47-57

50

Generic Log Type & Pricing Point EXPORT (NZ$ per JAS m3 f.o.b.)

DOMESTIC (NZ$ per tonne delivered at mill

Source: NZ Ministry of Agriculture and Forestry, Senior Analyst, MAF Policy Information & Regions 2 = Korea grade

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NOTE: Direct payment to NZ$ and US$ bank accounts are available. Please contact us for details. Return to: Trade and Media Services Ltd, P.O. Box 6215, Whakarewarewa, Rotorua, New Zealand Street Address: 5 High Street, Rotorua, New Zealand 3201 Fax: 64-7-349 4157; Tel: +64-7-349 4107; Email: southem@wave.co.nz URL: www.southem.com 12 Southern Hemisphere Forest Industry Journal Vol. 17 No. 2

Junio 2011

Southern Hemipshere Forest Industry Journal Vol 17 No 2 - June 2011  

This edition of the Jouranl focuses on the upcoming climate change talks to be held in South Africa later this year.

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