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Reports of Increased Timber Prices Welcomed by FRA
Forestry Research Associates (FRA) has highlighted the news from the Malaysian Timber Council (MTC) that the prices paid for its exported timber products are up by five per cent year-on-year.
“This is great news for timber investors, as it suggests demand for timber is up and prices could rise globally,” stated FRA’s analysis partner Peter Collins. The chief executive officer of the MTC, Cheah Kam Huan, explained that the majority of the growth has been measured in the second half of the year so far. He explained that the first half saw prices that were less favourable but that demand from the US and elsewhere, particularly for timber furniture, was driving prices up in the past few months.
Speaking at the International dlwtq Conference on Market Requirement for Timber and Timber Products, Mr Cheah said, “Hopefully, the second half would be better than the first half. So far, it is showing good results.” In fact, exported timber furniture prices increase by an impressive 12 per cent so far this second-half.
In addition to this good news came further positive noises from US–based International Wood Products Association, Brent McClendon, who added that the value of hardwood plywood imports to the UK from Malaysia so far this year had increased by 70 per cent.
FRA said that the reports that timber demand from the US was rising was great news for timber investors everywhere. Mr Collins added, “We can see demand for timber continuing to rise from the US, due to the improvements in the housing market.”
FRA supports a range of timber investment schemes and supports sustainable plantations investment projects like those run by firms like Greenwood Management and Ethical Forestry Investment in Brazil and elsewhere.
“Sustainably managed plantation timber is a good investment option for those looking to diversify their portfolios.”
Forestry Research Associates
620 Vineyard Lane
Bainbridge Island, WA 98110
(206) 316 8394