Australian Forest and Wood Products Statistics – March and June quarters 2009
Overview
Highlights in this issue
This issue of the Australian forest and wood products statistics (AFWPS) includes an update of the production and consumption volumes for wood-based panels and trade in forest products for 2008-09.
One of the key indicators of domestic demand for structural wood products, housing starts, fell by 17 per cent in 2008-09, which affected wood-based panel consumption and production in Australia.
Veneer production reached 116 000 cubic metres in 2008-09 as Ta Ann’s two new export oriented veneer mills in Tasmania approached full capacity.
The global financial crisis has resulted in a downturn in demand and subsequent fall in global trade of forest products, affecting the volume of Australia’s imports and exports. In 2008-09, the volume sawnwood imports fell by 20 per cent, wood-based panels by 15 per cent and paper and paperboard by 10 per cent.
However, the value of forest products imports increased by 1.1 per cent to $4.5 billion, because of a rise in the import unit value of paper as well as a large jump in the value of imports of miscellaneous forest products.
The value of Australia’s forest product exports fell by 5.2 per cent to $2.3 billion in 2008-09, mainly driven by a significant drop in the value of both woodchips and packaging and industrial paper exports.
Lower demand from Japanese paper producers, the largest market for Australia’s woodchip exports, contributed to the fall in export volumes. This was partly offset by higher woodchip export prices.
Production and consumption
Domestic demand conditions for Australia’s structural wood products declined in 2008-09, following strong housing activity in the previous year. In 2008-09, total dwelling commencements fell by 17 per cent to 131 000 units.
Consumption of wood-based panels (excluding veneer) in Australia fell by 11 per cent in 2008-09, with significant falls in all panel types (figure a).
Wood-based panel production (excluding veneer) fell by 7.7 per cent to 1.7 million cubic metres in 2008-09. Production of all panel types fell: plywood by 12 per cent, medium-density fibreboard by 11 per cent and particleboard by 4.8 per cent.
Against the trend of a downturn in domestic demand for structural wood products, total veneer production increased to 116 000 cubic metres in 2008-09. This reflected production from Ta Ann’s two new veneer mills in Tasmania, which export veneer to Malaysia. These mills approached full production capacity in 2008-09.
Trade
The overall value of imported forest products increased by 1.1 per cent relative to last year, reaching $4.5 billion in 2008-09. The increase was attributed to rises in the value of paper manufactures, miscellaneous forest products and paper and paperboard. The value of sawnwood and pulp imports fell in 2008-09.
While the total value of paper and paperboard imports rose by 1.3 per cent to $2.3 billion in 2008-09, the volume imported declined by about 10 per cent. Rises in the unit price of paper imported offset the significant fall in volume. For example, the volume of packing and industrial paper imported fell by 16 per cent, but the unit price rose 22 per cent in 2008-09, leading to a 2.2 per cent rise in the total value of imports, to $481 million.
The value of paper manufactures imports rose by 15 per cent to $590 million in 2008-09, driven by a $26 million increase in imports from China.
The value of imports of miscellaneous forest products also increased, up by 12 per cent in 2008-09, reflecting an increase in the value of imports of mouldings from Indonesia and builder’s carpentry from New Zealand and the United States.
Sawnwood imports decreased by almost 18 per cent to around $405 million in 2008-09 and the volume fell by almost 20 per cent, affected by low sawnwood demand resulting from reduced housing activity. New Zealand, the largest supplier of coniferous sawnwood to Australia, accounted for the largest decrease in sawnwood imports in 2008-09. Imports of sawnwood from all other major trading partners, except the United States, also declined.
The value of forest product exports decreased by 5.2 per cent to $2.3 billion in 2008-09. The decline was largely a result of a 7 per cent decline in the value of woodchip exports, to slightly less than $1 billion, as export volumes contracted. While the value of exports of veneer almost doubled and sawnwood increased slightly, the value of most other major product categories fell (figure b).
The volume of woodchip exports decreased by 15 per cent to 5.3 million bone dry tonnes in 2008-09. However, the fall in the total value of exports was only 7 per cent, as rises in contract prices in 2008 partly offset the fall in volumes (figure c).
The prices of broadleaved and coniferous woodchips to Japan recorded increases of 8 per cent and 21 per cent, respectively, in 2008-09 despite reduced volume demanded by Japanese paper manufacturers in the first half of 2009.
China increased its imports of Australian woodchips by 74 per cent to 484 000 bone dry tonnes in 2008-09. While China currently purchases a small proportion of Australia’s woodchip exports, it is likely to have strong growth potential into the future relative to Japan.
Exports of recovered paper, which have experienced strong growth over the previous few years, declined in 2008-09, with the total export value down 6.7 per cent to $235 million. This can be attributed to a fall in demand from China, Australia’s largest market for recovered paper. While the total volume of exports decreased by 5.4 per cent, at 1.2 million tonnes in 2008-09, the volume is more than three times higher than five years ago.
Exports of veneer continued to increase in 2008-09, as Ta Ann’s two export veneer mills in Tasmania approached full capacity. The total volume of exported veneer more than doubled from an estimated 35 000 cubic metres in 2007-08 to about 86 000 cubic metres in 2008-09. The value of exports almost doubled to reach $36.5 million in 2008-09, with the majority of the volume going to Malaysia for processing into plywood.
The value of sawnwood exports increased by 3.6 per cent in 2008-09, reaching $125 million as a result of increases to China, Chinese Taipei and Viet Nam. Export volumes increased by almost 5 per cent to 355 000 cubic metres over the same period. However, sawnwood export volumes are still below the peak of 416 000 cubic metres reached two years ago. Exports to Viet Nam have almost halved during this time.
The total value of wood-based panel exports fell by 6.9 per cent in 2008-09 as a fall in medium-density fibreboard exports more than offset the rise in veneer exports.
The value of paper and paperboard exports decreased by 4.7 per cent to $605.4 million in 2008-09. Falls were recorded across all categories, with the exception of household and sanitary products.
Exports of further manufactured paper increased by around 2.5 per cent, to $106 million in 2008-09.
