FRA: US and Canada timber prices rise due to Asian demand by pressreleasesolution

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									FRA: US and Canada timber prices rise due to Asian demand

Forestry Research Associates (FRA) has welcomed figures showing timber
prices rising in North America.

July 10, 2011 -- The latest briefing from Wood Resources International
LLC, shows that timber prices in the US and Canada increased by 20 per
cent last year due to increasing demand from East Asian markets. The
North American Wood Fiber Review claims that softwood sawlog prices have
increased steadily over the past two years in all regions of North
America.

Some of the largest increases were in the northwest US, driven by the
fact that total timber exports from the West Coast to Asia last year were
the highest in 14 years. The demand in Asia is being led by China, which
has developed an insatiable appetite for raw materials to help it fulfil
its economic growth potential.

FRA analyst Peter Collins said, "The demand from East Asia – including
from Japan in the wake of the devastating earthquake and tsunami in March
– has directly benefited the timber business in North America. Both the
USA and Canada are enjoying higher prices for their exported timber,
which also means the industry no longer has to rely on growth in the US
construction industry, which is still slow, to survive."

Areas in Western Canada are also seeing prices rise more than forestry
firms in the East, with prices for timber from trees such Douglas Fir and
Hemlock, rising considerably in the past two years (by between 19 and 25
per cent).

Despite the fact that Canadian timber prices have risen so significantly,
the country still has some of the lowest cost raw materials in the world,
which could be why East Asia is so keen to do business there at the
moment. Western Canada has the lowest sawlog prices in the world,
according to Wood Resource Quarterly.

Another reason Asia is keen to do business with US and Canadian forestry
owners is because Russia has made it increasingly difficult for other
nations to buy timber from their forests. As a result, the US and
Canadian forestry industries have benefited hugely from the boom in
construction taking place in Asia.

Contact:
Peter Collins
Forestry Research Associates
620 Vineyard Lane,
Bainbridge Island, WA 98110
United States
Tel: (206) 316 8394
Email: info@forestry-research.com
Web: http://www.forestry-research.com

Forestry Research, Wood Fiber Review, construction industry, forestry
firms

								
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