Tag Archives: timber prices

Business

Timber Prices set to continue to Rise, claims FRA

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FRA has welcomed a report from Investorplace.com, claiming that timber prices are not set to fall in 2013, making the asset class a good bet for investors looking to diversify this year.

Seattle, United States, January 8, 2013 — Forestry Research Associates (FRA) has welcomed a report from Investorplace.com, claiming that timber prices are not set to fall in 2013, making the asset class a good bet for investors looking to diversify this year.

There are several reasons that the article gives for retaining faith in timber prices in the US. Writing for Investorplace.com, Aaron Levitt says, ‘Driven by several forces – including a rebound in the US housing market, expanding pulp sales and a few issues with Mother Nature – timber became the commodity du jour during the last year.’

He goes on to talk about the gains in the US housing market that are expected this year. Increases in house prices in 2013 will be the first since 2006 and, in response to this, new home building is up by an impressive 42 per cent on a year ago.

This increase in housing starts is the main reason for the increase in lumber prices, according to Levitt, and FRA has welcomed this news. Its analysis partner, Peter Collins, said, “The knowledge that 42 per cent more homes are being built than a year ago in the US is a strong indicator that timber prices will be on the up in 2013 and beyond.”

“Now is great time to invest in timber and timberland for a medium and long-term investment that is likely to diversify a portfolio against risk and act as a hedge against inflation,” he went on to say.

To illustrate this point, the price of framing timber, which is used in new homes, has increased by 38 per cent in 2012 to around $373 per 1,000 board-feet.

FRA supports a wide range of sustainable, environmentally friendly alternative investments, including investing in sustainable plantations of non-native trees in Brazil and Canada. Investments in these kinds of plantation can be taken out through firms like Greenwood Management.

About Forestry Research Associates

Forestry Research Associates is a research and advisory consultancy that focuses on forestry management, sustainability issues and forestry investment around the globe.

Media Contact:
Peter Collins
Forestry Research Associates
620 Vineyard Lane
Bainbridge Island, WA 98110
(206) 316 8394
info@forestry-research.com
http://www.forestry-research.com

Business

Hurricane Sandy boosts Timber prices, claims FRA

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Timber prices are rising as a result of the devastation caused by Hurricane Sandy, which could mean growing returns for those with investments in timberland, according to reports by FRA.

Bainbridge Island, WA, November 01, 2012 – Timber prices are rising as a result of the devastation caused by Hurricane Sandy, which could mean growing returns for those with investments in timberland, according to reports by Forestry Research Associates (FRA).

The Chicago Mercantile Exchange was up yesterday by the maximum daily rate of $10 for 1,000 board feet. The rise is the result of the demand for timber for use in the rebuilding of thousands of homes, which were damaged by the hurricane throughout the Eastern US. Daryl Swetlishoff, form Raymond James Ltd, told Canada’s Globe and Mail Newspaper, “Lumber prices are atypically high for this point in the year, and bucking a seasonal trend already.

“For the near term, even if the hurricane is partially a psychological impact on lumber, prices are going to be buoyant, he added.

Several large forestry firms in Canada are now preparing to up their production in order to meet the new demand for lumber. The US might also import timber from elsewhere, such as Latin America, according to FRA’s analysis partner Peter Collins. Mr Collins explained: “The impact of Sandy was obviously devastating for many people living on the East Coast and the demand for timber to quickly rebuild their homes will be huge.”

Investing in sustainable timber, through plantation projects like those run by Greenwood Management and other similar firms in Brazil, can be a lucrative option at the moment. “Several analysts are predicting a boom in timber prices as demand continues to creep up,” added Mr Collins.

Mr Swetlishoff added, “A shock like this could keep prices higher and for longer in a season when it is typically weak. We’re tempering our view by saying that prices were already a bit elevated.”

Prices are high due to strong demand from emerging economies like China and India, which are importing huge amounts of timber for house building and infrastructure development.

Contact:
Peter Collins
Forestry Research Associates
620 Vineyard Lane
Bainbridge Island, WA 98110
(206) 316 8394
info@forestry-research.com
http://www.forestry-research.com

Business

Reports of Increased Timber Prices Welcomed by FRA

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Forestry Research Associates (FRA) has highlighted the news from the Malaysian Timber Council (MTC) that the prices paid for its exported timber products are up by five per cent year-on-year.

Bainbridge Island, WA, October 08, 2012 – Forestry Research Associates (FRA) has highlighted the news from the Malaysian Timber Council (MTC) that the prices paid for its exported timber products are up by five per cent year-on-year.

“This is great news for timber investors, as it suggests demand for timber is up and prices could rise globally,” stated FRA’s analysis partner Peter Collins. The chief executive officer of the MTC, Cheah Kam Huan, explained that the majority of the growth has been measured in the second half of the year so far. He explained that the first half saw prices that were less favourable but that demand from the US and elsewhere, particularly for timber furniture, was driving prices up in the past few months.

Speaking at the International Conference on Market Requirement for Timber and Timber Products, Mr Cheah said, “Hopefully, the second half would be better than the first half. So far, it is showing good results.” In fact, exported timber furniture prices increase by an impressive 12 per cent so far this second-half.

In addition to this good news came further positive noises from US–based International Wood Products Association, Brent McClendon, who added that the value of hardwood plywood imports to the UK from Malaysia so far this year had increased by 70 per cent.

FRA said that the reports that timber demand from the US was rising was great news for timber investors everywhere. Mr Collins added, “We can see demand for timber continuing to rise from the US, due to the improvements in the housing market.”

FRA supports a range of timber investment schemes and supports sustainable plantations investment projects like those run by firms like Greenwood Management and Ethical Forestry Investment in Brazil and elsewhere.

“Sustainably managed plantation timber is a good investment option for those looking to diversify their portfolios.” added Collins.

Contact:
Peter Collins
Forestry Research Associates
620 Vineyard Lane
Bainbridge Island, WA 98110
(206) 316 8394
info@forestry-research.com
http://www.forestry-research.com

Business

Timber Prices Growing “Thanks to Asian Housing Boom”, says FRA

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Timber prices are increasing in the US because the demand for lumber continues to grow in Asia, according to FRA and research from the Claymore Beacon Global Timber Index.

Bainbridge Island, WA, August 22, 2012 – Timber prices are increasing in the US because the demand for lumber continues to grow in Asia, according to Forestry Research Associates (FRA) and research from the Claymore Beacon Global Timber Index.

The figures show that log exports from the US to Asia increased by 5.2 per cent in the first three months of 2012 and analysts believed that the boost to demand came as a result of the booming global housing market.

“Growing economies, like China and India, are all hard at work building new homes for people increasingly moving into urban areas to take the newly created jobs in these regions,” explained FRA’s analysis partner, Peter Collins. “Lumber is one of the main building materials used in these countries and they are shopping millions of tons of logs in form elsewhere to meet demand, which is great news for timber and forestry investors worldwide.”

An example of the house-building boom in China comes from the latest figures from Xinyuan Real Estate Company, which reported growth of 73.53 per cent for so far in 2012.

Now is a great time to invest in timberland, according to FRA and other forestry investment experts. The market for housing in the US is also looking to be improving, which will mean the domestic demand for timber logs will also increase over time.

“Timber is a great medium to long-term investment solution for those who want a low-risk portfolio,” stated Mr Collins.

Investing in forestry through sustainable plantation projects, such as those run by firms like Greenwood Management in Brazil and Canada, is a popular option. These plantations investment plans allow people to directly buy forestry land with as little as $10,000. The plantations are already in operation and the cyclical growing model means returns start to be seen by investors before their specific trees come to maturity.

Contact:
Peter Collins
Forestry Research Associates
620 Vineyard Lane
Bainbridge Island, WA 98110
(206) 316 8394
info@forestry-research.com
http://www.forestry-research.com