EUROPEAN Softwood Imports Are Continuing to Stream Into Australia

EUROPEAN softwood imports are continuing to stream into Australia, placing pressure on domestic producers as housing starts struggle. Imports of softwood sawn timber rose to about 156, 000 cubic metres over the September quarter, a rise of 7.1 per cent after a relatively low result in the June quarter, according to the latest URS timber market survey. URS said softwood timber imports were generally declining despite the high value of the Australian dollar, reflecting a period of falling dwelling starts. Over the year to September, total dwelling construction approvals fell by 9.31 per cent. In the same period, residential housing construction was down by 12.88 per cent. "However, softwood timber imports have not declined as sharply as dwelling commencements over this period, which gives an indication of the increased competitiveness of importers in the marketplace, " URS said. Favourable conditions for importers had been driven by the historically high $A, low shipping costs, sufficient global supply and weaker economic conditions in North America, Europe and New Zealand. Europe and NZ remained the main source of softwood timber imports, URS said. Europe, including the Czech Republic, Germany, Sweden and Austria, accounted for 45 per cent of imports, while NZ accounted for 37 per cent. NZ imports reached 57, 500 cubic metres over the September quarter, the largest quarterly import volume from NZ since the 2008 September quarter. The issue of timber imports was raised this month by a federal parliamentary inquiry, which recommended that the federal government should probe whether Australia should create a national plan for plantations and aim for wood supply "self-sufficiency". The House of Representatives standing committee on agriculture, resources, fisheries and forestry, said self-sufficiency would see the timber industry make a greater contribution to the construction industry. Source: smh.com.au