ARBOR RESOURCES Ltd

  • Home
  • Heat/Drying Plant
  • Equipment for sale
    • Forklifts
    • Remanufacturing Plant
    • Vehicles
    • Yard
    • Misc Machinery
    • MISC FOR SALE
  • Sale Specials
  • Our Timber
    • Timber Standards
    • Timber Grades
    • Available stock
    • Affordable Outdoor Timber
  • About
    • About Us
    • Our Operations
    • Environment Policy
    • The Team
    • Why Pine?
    • Testimonials
    • Your Industry >
      • Your Industry
      • Architects, Engineers & Specifiers
      • Exterior Joinery & Construction
      • Furniture & Interior Joinery
      • Industrial, Pallets & Packaging
      • Health & Safety
      • Landscaping & Heavy Construction
    • Learn More >
      • NZ Pine Info >
        • Statistics
        • Area Planted
        • Plantations
        • Where Harvest Go
        • Forecasts
        • Useful Links
      • FAQs
      • Glossary >
        • Wood Terms
        • Shipping Terms
      • Videos
      • Downloads
  • Orders & Inquiries
    • Orders & Inquiries
    • Timber Exports Inquiry
    • New Zealand Domestic Sales
  • Blog
  • Contact Us
  • 联系我们
  • Blog
  • Home
  • Heat/Drying Plant
  • Equipment for sale
    • Forklifts
    • Remanufacturing Plant
    • Vehicles
    • Yard
    • Misc Machinery
    • MISC FOR SALE
  • Sale Specials
  • Our Timber
    • Timber Standards
    • Timber Grades
    • Available stock
    • Affordable Outdoor Timber
  • About
    • About Us
    • Our Operations
    • Environment Policy
    • The Team
    • Why Pine?
    • Testimonials
    • Your Industry >
      • Your Industry
      • Architects, Engineers & Specifiers
      • Exterior Joinery & Construction
      • Furniture & Interior Joinery
      • Industrial, Pallets & Packaging
      • Health & Safety
      • Landscaping & Heavy Construction
    • Learn More >
      • NZ Pine Info >
        • Statistics
        • Area Planted
        • Plantations
        • Where Harvest Go
        • Forecasts
        • Useful Links
      • FAQs
      • Glossary >
        • Wood Terms
        • Shipping Terms
      • Videos
      • Downloads
  • Orders & Inquiries
    • Orders & Inquiries
    • Timber Exports Inquiry
    • New Zealand Domestic Sales
  • Blog
  • Contact Us
  • 联系我们
  • Blog

Arbor Resources Blog Updates

​Chinese imports of softwood and hardwood wood products will be
significantly altered in 2022 if Russia’s log export ban is implemented
China is the world’s largest importer of softwood and hardwood logs, and for many decades,
Russia has been a significant log supplier for them. This relationship may change in 2022
if Russia implements their proposed ban on exports of softwood logs and valuable
hardwood logs, while also introducing export taxes on green lumber. All these policy
changes are designed to encourage increased domestic production of higher-valued forest
products.
The Russian parliament has not yet announced the final legislative proclamation, so it is
not clear if there will be a complete or phased-in ban, a significant export tax, or even the
possibility of a state-owned export monopoly. However, a signal has been sent to the
marketplace that Russia will no longer be a major supplier of softwood and hardwood logs.
One consequence of this decision is that Chinese wood manufacturers will need to explore
new long-term log supply regions.
In 2020, China imported almost 6.5 million m3 of logs from Russia, predominantly
softwood species. The trade was substantially less than in any year during the past two
decades. Nevertheless, Russia was still the largest supplier of hardwood logs to China in
2020 (more prominent than any other source of temperate or tropical logs) and the thirdlargest
supplier of softwood logs.
It is crucial to keep in mind that China has shifted from sourcing logs from Russia to
European suppliers the past few years as insect-infested timber in Central Europe has been
in temporary abundance. From 2018 to 2020, softwood log imports from Europe increased
from 1.3 million m3 to 12.3 million m3, while Russian-supplied logs fell from 7.8 million
m3 to 4.2 million m3. However, shipments from Europe are not sustainable long-term.
According to the just-released study by the consulting firms Wood Resources International
and O’Kelly Acumen (Russian Log Export Ban in 2022 - Implications for the Global
Forest Industry), China is expected to source more sawlogs from Oceania, Europe, and the
US short-term. Longer-term, the study anticipates that China is likely to shift further from
WRI Market Insights 2021
- a subscription service from Wood Resources International
Global Sawlog Markets
Wood Resources
International
importing logs to lumber, thus creating opportunities for lumber manufacturers, mainly in
Europe and Russia, to increase shipments to this growing market.
The excerpt above is from the just-released Focus Report “Russia Log Export Ban in 2022 –
Implications to the Global Forest Industry”, published by Wood Resources International LLC
and O’Kelly Acumen. For more information about the study or to inquire about purchasing the
60-page report in easy-to-read slide format, please contact either Hakan Ekstrom
(hakan@woodprices.com) or Glen O’Kelly (glen.okelly@okelly.se). A Table of Contents of the
report is available on our website. Click here!
Contact Information
Wood Resources International LLC
Hakan Ekstrom, Seattle, USA
info@WoodPrices.com

India - a market to watch

6/7/2018

0 Comments

 
Picture
India’s wood products market continues to expand rapidly. Today, softwood is gaining market share over hardwood, assisted in part by limited volumes of renewable or certified hardwood fibre. At the same time, a variety of initiatives are pointing to huge future increases in Indian wood products demand: India’s goal of growing the share of manufacturing in its GDP to 25% by 2022; proposed massive infrastructure investments (e.g., 500 new cities, 50 subways and 250 airports by 2030); and a backlog in housing construction (up to 65 million units). 

There is a “Make in India” campaign that is well on its way to making the nation a haven for investment and a propeller of economic growth. On the threshold of major reforms and poised to become the third-largest economy in the world by 2030, Make in India has announced a variety of initiatives that will facilitate the indigenous manufacturing of furniture, and ease the way for doing business in India. 

Indian dynamics are somewhat like China’s were some 10 years ago: constrained domestic production and a likely eventual surge in imports to meet domestic demand. Despite notable differences, India compares favourably to China and the U.S. Ranked as one of the top three most attractive investment destinations in the world, India is also one of the fastest-growing global economies. According to a study by the World Bank, India’s organized furniture industry is expected to grow by 20% per annum over the next few years, crossing the US$32 billion threshold by 2019. 

Foreign direct investment in India’s real estate sector, the government’s “Housing For All by 2022” initiative, and development of 100 smart cities to accommodate a growing urban population are some of the growth drivers reviving the real estate and construction sector. The anticipated increase in the tourism, hospitality, retail and hospital sectors is also expected to spur furniture demand in the country. The rise in demand for residential realty is a huge 20%, and the home furniture market should witness the fastest growth of all sectors in the next five years, followed by the office and institutional segments. 

According to a World Bank study, the Asian market is thought to be the biggest consumer of furniture worldwide, and India holds a major slice of the pie. The foreign direct investment enterprise under Make in India has already resulted in 60% growth in inflows, and it is this government campaign, along with the objective of high standards of quality, that is steadily attracting international capital and technological investment in the country, facilitating local production. 

With rapidly depleting global hardwood supply and huge consumption growth anticipated in India, the demand for imported softwood will only expand. One forecast is calling for massive softwood expansion: from ~2.5 million m3 in 2017 to over 65 million m3 in 2027. There are several developments that support this type of growth rate projection. For one, government and consumer perceptions around sustainable supplies (as opposed to illegally sourced lumber) are starting to change (India is currently considered the third-largest world market for illegal timber, following China and Vietnam). There is also the so-called “Ikea effect” that is allowing more consumers to be exposed to the look and use of softwood furniture. In fact, Ikea is planning to open 25 stores in India in next five years, with about 30% of the business volume to be sourced locally. 

“Is India the new China?” That’s a question that continues to be asked and the answer, simply put, is yes. It is only a matter of time. Many game-changers support this premise: 

- India has a young population, with a median age of 30 from now until 2050; 
- 100 million students graduate every year; 
- India has the fastest-growing GDP (7.4 %), surpassing even China; 
- The country is the world’s largest democracy, led by a growth-oriented leader with a majority government; 
- For the first time in India, corruption is being dealt with decisively; 
- There is a robust and transparent financial sector in the country; 
- India is leapfrogging to a digital economy, with almost 1 billion people now having biometric identification and 300 million smartphones; 
- The domestic construction industry in India is US$1 trillion in scale; 
- The country has industrial corridors and smart cities; and
- India’s real estate market permits direct foreign investment. 

As a result of all of the factors noted above, India will continue to be a softwood market to be watched. As of now, its growth prospects look mammoth! ​

0 Comments



Leave a Reply.

    Author
    ​FRANK T DAVIS 

    A SURLY AND CYNICAL OLD CURMUDGEON WITH A JAUNDICED VIEW OF THE POLITICAL ELITE .

    Archives

    March 2021
    July 2020
    February 2020
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    September 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016

    Categories

    All

    RSS Feed

PLEASE NOTE: ARBOR DOES NOT TRADE IN LOGS, ONLY SAWN TIMBER AND TIMBER PRODUCTS!

About
Our Timber
Your Industry
Timber Export
Learn More
Orders & Enquiries
Blog
Contact Us
© COPYRIGHT 2015 Arbor Resources Ltd. ALL RIGHTS RESERVED.