Consumables

Hardwood chip shortage expected in Asian markets by 2019

Wednesday 01. April 2015 - Despite an adequate supply of hardwood fiber to Asian markets early this year, a shortage in hardwood chip supply is expected to take place over the next five years

A surplus of hardwood fiber in Asian markets exists in early 2015, but this market is expected to change dramatically over the next five years. It is forecasted that by 2019 there will be a shortage of hardwood chip export supply relative to strong demand in Asia, and a subsequent increase in hardwood chip prices by 2018-2019. These findings and more were recently released in the 2015 International Pulpwood Trade Review by RISI, the leading information provider for the global forest products industry.
“This year started off with an apparent weakness in hardwood chip prices, in contrast to softwood chip prices which have been increasing. However, the forecasted shortage of supply for Asian markets – relative to projected demand – could result in significant changes,” said Robert Flynn Director of International Timber at RISI and co-author of the annual report.
“Over the last year, we have seen other shifts in global supply of hardwood chips. In 2014, shipments from Southeast Asia declined; the first time volume from the region has reduced since 1998. Similarly, traditional hardwood chip suppliers in Australia and South Africa gained greater share of the market for the first time since 2007. Australia’s volume increased 29% and South Africa’s jumped 32% compared to 2013,” continued Flynn.
The announced government policy to limit woodchip exports from Vietnam, by far the largest source of supply for the international markets, was another factor which could “throw the woodchip markets into turmoil,” according to Flynn.

http://www.risi.com
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