FRA
has endorsed a report from a forestry market analyst claiming that
Chinese demand for Canadian timber will increase in 2013.
Seattle,
United States, December 31, 2012 -- Forestry Research Associates
(FRA) has endorsed a report from a forestry market analyst claiming
that Chinese demand for Canadian timber will increase in 2013.
British
Columbia, one of the main timber growing regions in Canada, exported
a total of 5.4 million cubic metres of softwood lumber in the first
nine months of the year. Although this was a slight decline on the
exports in the same period of 2011, Mark Kennedy of CIBC World
Markets claims this is all to change.
Kennedy
said that the small decline is actually quite a good result in light
of the slight weakening of the Chinese real estate industry. The
timber imported into China from Canada is generally used to reinforce
concrete in apartment buildings and also for door and window frames.
This means that imports will always be strongest when the country is
building lots of homes.
FRA,
a research and analysis consultancy, backs Mr Kennedy’s claims that
social housing support and other stimulus moves announced by the
Chinese government could mean more timber imports. He claims that
between 2013 and 2015, timber imports could increase by as much as 20
per cent. Canada, in turn, supplies more than 80 per cent of all the
lumber exported from the US.
In
terms of China’s demand for new homes, some two million homes that
were previously demolished need to be rebuilt and, even without this,
China plans is to build some 10.75 million new homes every year for
the coming 15 years.
FRA’s
analysis partner Peter Collins, said, “With this kind of real
estate development happening, we are confident that demand for
sustainable timber will increase over the coming years. In fact,
evidence suggests that demand will outstrip supply by some margin,
which will also lead to rising prices.”
FRA
claims that this all means strong returns for those who invest in
sustainable forestry projects in Canada, through firms like Greenwood
Management.
About
Forestry Research Associates
Forestry
Research Associates is a research and advisory consultancy that
focuses on forestry management, sustainability issues and forestry
investment around the globe.
Media
Contact:
Peter
Collins
Forestry
Research Associates
620
Vineyard Lane
Bainbridge
Island, WA 98110
(206)
316 8394
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