South Africa: Until the housing sector comes back to life wood markets will remain quiet

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The pine market has been steady over the past two weeks say traders. The loss of a sawmill in the Cape fires and the resultant damage to plantation forests in the Cape has not affected the market. Analysts say the pine market was oversupplied and this is likely to continue while demand is weak.

There are very few long term contracts for the truss manufacturers so they are operating hand to mouth with no work between orders. The rebuilding in the fire damaged Cape areas will generate some new business but it is expected that there will be a slow start in rebuilding. Most of the damage is under inspection by the insurance companies which have yet to release funds.

The commercial property market has provided a little business but, as the latest RMB/BER survey shows, activity is well down. It is expected that there could be a short-term boost in shop-fitting due to the liquidation of some big retailers and some overseas operations such as River Island closing their operations.

The board market is also depressed say analysts and the arrival of some imported panels at very competitive prices because of the strong Rand has unsettled the market for domestic products. The entire panel market is very quiet as, up to now, the promised government infrastructure programme has not started yet.

Demand for meranti is very quiet and shippers have not been successful in securing better prices mainly due to their need to remain competitive with other materials such as Aluminium.

Traders report some demand for Acajou but the supply of Kiaat from Mozambique has basically dried up because of heavy demand from the Chinese market.

Demand for American hardwoods remains steady, being kept alive by shop-fitters and there is some demand from high end furniture manufacturers but the low and medium price markets are very weak. The June issue of Sawmilling South Africa has reported seven South African designers are working with American Hardwood Export Council (AHEC), to design a ‘Seed to Seat' project at 100% Design South Africa 2017.

The ‘something to sit on’ pieces, which will be made from a selection of four American hardwood species - American cherry, tulipwood, soft maple or red oak - will be unveiled at 100% Design South Africa 2017, running from 9-13 August in Johannesburg.

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