US: Massive log exports to China boom prices and profits

Fuente:
RW/RS
Vistas:
10038
  • text size

In northwestern United States, logging activity is in full mode in the forests of Douglas fir and hemlocks (Tsuga heterophylla or western hemlock). ''Logging companies are operating at full capacity,'' said Garett Weaver of the Oregon Loggers Association. If you want to find the reason for this situation, you have to look towards Asia.

At the moment, including British Columbia, about 11 million m3 of unprocessed logs are being shipped every year to China (about 70% of the total). This represents an increase of 30% over 2012-2013. And this trend is confirmed in 2014, when in the first months of this year, exports were up 14%, followed by a further increase of 10% in the second quarter compared to the first.

The states of northwestern USA are the main contributors to exports (53% of the total), followed by British Columbia (41%). This phenomenon is now spreading in the south of the United States, where export of yellow pine logs rose 130% in the first five months of 2014. These exports, destined mainly to China and India, increased share from 2% to 6% of the US total in just two years.

''Half of forest harvesting on the west coast of the US and Canada are going as unprocessed logs to China. Volumes increased significantly in 3 years and log prices follow the same progression,'' said Darren Hadlock of the Quadco company. This boom in log exports to China have great consequences for forest owners. Thus, prices of Douglas jumped 78% since 2009 and 17% since 2012. The price surge of hemlock is even more impressive: +93% since 2009 and 18% since 2012 (see table below).

Manufacturers of forestry machines are ''rubbing their hands''. This renewed activity is increasing their business. ''After the 2008 crisis, our clients had rounded back. But today we are witnessing a renewal of our machinery fleet. On the northwest sector of which I am responsible, we went from 10 heads sold in 2009 to 60 in 2014,'' says Darren Hadlock, who also speaks about an explosion in orders spanning on over 4 months now.

PRICE OF LOGS IN THE NORTHWEST of US

Washington State (USA), Avg $ per MBF

Domestic market:

  2007 2008 2009 2010 2011 2012 2013 09/2014 10/2014
Douglas 520 448 348 436 551 538 611 613 628
Hemlock 418 345 288 370 481 471 530 546 556

Exports:

Douglas 652 668 583 562 666 662 729 743 759
Hemlock 522 500 417 516 613 542 720 635 649
Red cedar 1016 1096 657 925 867 838 955 1136 1179

1 MBF = 2,36 m3

                 

Source : Northwest Forestry Services

Publica comentario