Australian timber industry news

German company NiTO has developed wooden bricks with which it hopes to revolutionize the construction industry. It says these bricks are an innovative, sustainable and easy-to-use building system made of 100% solid wood that offer quick assembly, a healthy indoor climate and are fully recyclable. Source: Timberbiz At a time when the construction industry faces immense challenges, from skilled labour shortages to rising material costs to increasingly stringent environmental regulations, the NiTO wood brick presents itself as a solution. This innovative product not only promises ecological benefits but also addresses pressing economic and social problems. Made from 100% solid wood without additives or adhesives, it is fully recyclable and seamlessly integrates into natural material cycles. This consistent implementation of the circular economy in the construction sector is an important step towards reducing the industry’s ecological footprint. Moreover, every building constructed with NiTO wood bricks actively contributes to climate protection by binding CO2 in the long term. About one ton of CO2 is bound per cubic meter – a significant contribution to the fight against climate change. The shortage of skilled workers poses major challenges for the construction industry. NiTO offers a clever solution. Thanks to the innovative tongue-and-groove system, the wooden bricks can be easily stacked like oversized toy blocks. This simplification of the construction process allows even less specialized workers to be employed efficiently. The speed is particularly impressive. You need less than a minute for one square meter of NiTO wall, while conventional masonry takes about 30 minutes. This enormous time saving allows companies to realize significantly more projects with the same workforce, thus counteracting the shortage of skilled workers. The increase in efficiency through NiTO directly affects the cost structure of construction projects. Shorter construction times mean lower personnel costs and faster completion of projects. This not only increases profitability for construction companies but also makes new buildings more attractive and affordable for end customers. In addition, the simplicity of the system opens up new possibilities for personal contributions. As a builder, you can actively participate in the construction process and thus save additional costs. This flexibility and cost efficiency strengthens the competitiveness of construction companies. The NiTO wooden brick is more than just an innovative building product – it represents a paradigm shift in the construction industry. It shows that sustainable, efficient and cost-effective construction is not only possible, but the future of the sector.

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Under the leadership of climate scientist Hans Joachim Schellnhuber, the Science and Timber Construction Alliance (SITCA) was launched. The initiative aims to transform the construction sector into a driver of climate protection through sustainable forest management and modern timber construction. Source: Timberbiz Together with its founding partners IIASA, Hilti, WIEHAG, binderholz, EGGER, Stora Enso, and the Austrian Federal Forests, SITCA combines scientific expertise with the innovative strength of leading companies from the construction and forestry sectors. “We are approaching dangerous tipping points in the climate system. At the same time, the global built environment is responsible for more than one-third of CO₂ emissions – making it the single greatest leverage point for preventing a looming ‘Hothouse Earth’ scenario,” Prof Hans Joachim Schellnhuber, Director General of IIASA, said. “Cities must be transformed from sources of CO₂ into carbon sinks. Timber construction is the most important tool to achieve this. “The combustion of fossil fuels and the destruction of natural ecosystems have significantly increased the concentration of CO₂ in the atmosphere. Trees absorb CO₂ through photosynthesis and store the carbon in their wood. When this wood is used in long-lasting buildings, the carbon remains locked away for decades or even centuries, while new trees grow in the forest and absorb additional CO₂. In this way, CO₂ is continuously removed from the atmosphere and, metaphorically speaking, ‘pumped’ via the forest into the built environment. “Sustainable forest management and timber construction, combined with reuse and modern recycling technologies, can therefore create a long-term carbon sink.” The alliance’s primary objective is to provide scientific evidence and raise awareness among decision-makers. “With SITCA, we are creating the scientific foundation needed to convince decision-makers in politics, public administration, real estate, and the construction industry around the world of the need for a paradigm shift from CO₂-intensive materials to regenerative building materials,” Dr Erich Wiesner, CEO of WIEHAG said. Austrian Federal Minister Norbert Totschnig said: “Building with wood saves CO₂ twice over. On the one hand, carbon is stored in wood over the long term; on the other hand, the use of emission-intensive construction materials is reduced. “This is why Austria has consistently promoted timber construction for many years, for example through endowed professorships in timber engineering and the Austrian State Prize for Timber Construction. Particularly in multi-storey residential construction, however, there remains enormous, untapped potential. “Through initiatives such as SITCA, we bring together science, industry, and policymakers, strengthen innovation, and create the knowledge needed for a climate-friendly and sustainable future.” For Prof Daniela Kleinschmit, President of the International Union of Forest Research Organizations (IUFRO), the societal dimension is crucial. “Timber construction can only succeed with healthy forests. We integrate biodiversity and social considerations from the very beginning to ensure the public acceptance required for this transformation,” Prof Kleinschmit said. IUFRO will be represented on the alliance’s advisory board as a scientific partner and will contribute expertise from its global network of researchers. SITCA works in close coordination with the communication initiative “Grow the Solution,” developed by the Food and Agriculture Organization of the United Nations (FAO). “Globally, we are faced with a discrepancy between the urgent need for climate-friendly building materials and the still limited public awareness of sustainably produced wood in construction. We welcome the SITCA initiative, as it helps provide fact-based information on sustainable, forest-based solutions,” said Dr Ewald Rametsteiner, Deputy Director of the FAO Forestry Division, underscoring the initiative’s international significance. In addition to the scientific community, SITCA is supported by major players across the sector. The founding partners, together with HASSLACHER Group, which joined last week as the first new industry partner, represent the entire forest-based value chain. The Science and Timber Construction Alliance (SITCA) is a global platform dedicated to advancing timber-based construction through scientific evidence.

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Forest fires in France, Spain, and Portugal have devastated over 17,000 hectares of land due to prolonged heat. On Sunday, hundreds of firefighters continued to battle the flames, with temperatures reaching 40°C. Source: UNN The latest forest fires in France, Spain, and Portugal have already devastated more than 17,000 hectares of land amid the ongoing heatwave in the region. This is reported by Le Monde, writes UNN. On Sunday, July 5, hundreds of firefighters continued to battle forest fires in France, Spain, and Portugal, as temperatures in heat-stricken Europe rose again. The latest forest fires have already devastated more than 17,000 hectares of land — twice the size of Manhattan (a district of New York) — in the three countries, where temperatures in some places are forecast to reach up to 40ºC on Sunday. It is noted that a fire near the northeastern coast of Costa Brava in Spain has devastated more than 2,200 hectares of land. Meanwhile, nearly 600 French firefighters have been mobilized to contain a forest fire that has engulfed more than 1,000 hectares on the slope of Mount Trevillach, about 36 kilometres east of the southern city of Perpignan. Another 300 French firefighters are battling another forest fire in the mountainous region of the southeastern department of Drôme. In Portugal, emergency services said they had managed to bring 80% of a forest fire under control that devastated about 13,000 hectares of forests and scrubland in the north of the country. Spain and Italy sent reinforcements and water-dropping aircraft after Portugal requested help in fighting the fire, which injured nine people. According to a group of scientists from the international initiative World Weather Attribution, Western Europe already experienced heatwaves in May and June this year that would have been “virtually impossible” without climate change.

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Landholders across Victoria are being supported to integrate more trees into their farming systems, following an extension of the Victorian Trees on Farms (VToF) Program. Source: Timberbiz The program and Professional Service Provider Register has been extended to 1 November 2026, giving eligible landholders more time to apply for grants to establish trees on their properties. Through the Victorian Trees on Farms Program, landholders can access grants of up to $40,000 to deliver on-ground works such as shelterbelts, riparian planting and revegetation projects. The program supports farmers to improve productivity and build resilience, while delivering environmental benefits including better soil health, reduced erosion, increased carbon sequestration and enhanced biodiversity. Agriculture Victoria Acting Executive Director Forestry and Fibre Industry Liam Costello said the extension would support more landholders to take part in the program. “This program is about helping farmers integrate trees into their properties in practical ways that support their business and the long-term health of their land,” Mr Costello said. “The extension gives more landholders the opportunity to plan and deliver planting projects that improve productivity, resilience and environmental outcomes.” Mr Costello said trees on farms also play an important role in strengthening Victoria’s farming systems for the future. “Integrating trees into farming systems can deliver multiple benefits, from shelter for livestock to improved soil and water outcomes, while supporting sustainable land management.” The Victorian Government has invested more than $1.5 billion to support industry transition, impacted workers and communities, and the management and future use of Victoria’s forests. The VToF program builds on the Victorian Government’s broader investment in plantation development and farm forestry, helping landholders diversify income and make the most of their land. For more information about the program, visit the Victorian Trees on Farms Program page at https://agriculture.vic.gov.au/crops-and-horticulture/plantations-and-farm-forestry/trees-on-farms/victorian-trees-on-farms-program

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Increased trade is key to driving an innovative wood processing and manufacturing sector that will strengthen regional communities, reduce emissions, and build a more resilient and prosperous New Zealand, according to Mark Ross, Chief Executive of the Wood Processors and Manufacturers Association of New Zealand (WPMA). Source: Timberbiz “This includes supporting trade policies that open markets for high-value wood products, backing programmes such as the Value-Added Wood Exports Growth Accelerator, along with encouraging investment in domestic wood processing to grow the sector,” Mr Ross said. “Equally important is supporting efforts to remove trade barriers that restrict market access and limit opportunities for New Zealand manufacturers.” Mr Ross said the National Party’s policy document released at the weekend, Building the Future: New Zealand’s Next Billion Customers, signals an on-going commitment to growing New Zealand’s export sector. “A clear focus on export growth and trade support is good news for New Zealand businesses. It’s encouraging to see these priorities recognised, and exporters will welcome the commitment to strengthening New Zealand’s international trade opportunities if National is re-elected,” he said. For our sector specifically, National has signalled a focus on driving value-added wood exports rather than raw log exports, with attention on opportunities created through trade agreements such as the CPTPP, RCEP and a future India Free Trade Agreement. The policy also highlights leading value-added wood and forestry trade missions into Asia and the Gulf region and promoting products such as engineered wood, mass timber and construction products. Trade should remain a priority for all political parties. New Zealand has a strong tradition of cross-party support for trade. Maintaining that approach will be vital for the continued growth of the wood products sector and for New Zealand’s future economic success. ” By working together to expand market access and support value-added exports, we can unlock greater economic value from our forest and wood resources, create more skilled jobs in our regions, and build a stronger wood processing and manufacturing sector,” Mr Ross said. National’s plan to secure New Zealand’s next billion customers includes: Prioritising new trade deals with European, South American, African and Asian countries, with an initial tranche of seven priority markets to pursue negotiations with in the next five years. Negotiating new essential supplies agreements with like-minded partners, using the NZ–Singapore AOTES agreement as the template. Cutting red tape by expanding paperless trade and digital customs, eliminating NZ$1 billion in non-tariff barriers. Creating new tools for businesses to help streamline their export experience. Giving New Zealand Trade and Enterprise a sharper mandate – leading Kiwi businesses to new opportunities and backing the next generation of exporters. Completing at least 23 trade missions over the next term, with a sharper focus on sector-specific missions and measurable commercial outcomes. Re-affirm our commitment to doubling the value of exports by 2034.   The seven priority markets are Brazil, Switzerland, Argentina, Bangladesh, Nigeria, Uruguay and the European Free Trade Association (Iceland, Liechtenstein and Norway). Together, they represent almost 700 million people and more than US$5 trillion in combined GDP. The Building the Future: New Zealand’s Next Billion Customers’ can be found here.  

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After the passage of the most recent Federal tax hikes, the Housing Industry Association (HIA), Urban Development Institute of Australia (UDIA) and Property Council of Australia have united to issue a warning that proposed changes to capital gains tax (CGT), negative gearing and Self-Managed Super Fund (SMSF) investment rules will reduce housing supply, increase rents and make it harder to deliver the homes Australia needs. Source: Timberbiz Proposed tax changes disincentivise investment in existing rental housing and shrink supply. At the same time, new homes are more expensive to build than existing dwellings, meaning any slowdown in investment is likely to place further upward pressure on rents. UDIA National President, Oscar Stanley, said extensive engagement with developers, financiers, mortgage brokers, commercial finance specialists and property professionals across Australia, has delivered a clear message – the removal of SMSF investment from the new housing market will make it harder to finance residential developments and result in fewer homes being built. “The housing industry has spoken with one voice today,” Mr Stanley said. “This policy will make it harder to fund new housing and will ultimately reduce supply.” HIA Chief Executive Industry & Policy, Simon Croft, said that at a minimum, the changes should be amended to preserve the ability of SMSFs to support new housing supply, consistent with the broader objectives of increasing housing availability. “The Government has already acknowledged that its Budget housing tax changes will reduce supply by around 35,000 homes over the next decade,” Mr Croft said. “It is concerning that further restrictions on private capital have been introduced without any public assessment of the additional impact on housing supply. Apartment developments rely on meeting pre-sale thresholds, and SMSF investors play a critical role in getting these projects out of the ground.” Chief Executive of the Property Council of Australia, Mike Zorbas, said: “New housing supply is king. Construction and capital costs already prevent new projects taking flight. “Changes to SMSFs are the latest handbrake on investment nobody asked for at the same time as trust tax hikes suck the certainty out of new business and hiring decisions for a substantial part of the sector.” Treasury’s own Budget estimates show the proposed tax changes would result in fewer homes being built over the next decade. The impact will be significantly worse if SMSFs are prevented from investing in residential property. SMSF investment is critical to the viability of many new housing developments, with at least 30 per cent of apartment project pre-sales typically coming from SMSF investors. SMSF investment in new housing is a lynchpin for project pre-sales. Every investor helps deliver more homes for Australians. Removing this source of investment would make it even harder to get new housing projects off the ground. The industry believes more supply, not additional taxes, is the key to solving the housing challenge. The peak bodies are calling on the Government to: Consult closely with industry on rules defining the impact of the negative gearing, CGT and SMSF changes to avoid unintended and unworkable outcomes; Review the impact of the combined changes with a view to further fixes if the downside exceeds Treasury modelling; Allow SMSFs to continue to invest in new residential housing; and Prioritise policies to accelerate delivery of rental housing and increase housing supply.   Mr Stanley said that Australia was in the grip of a housing supply crisis. “Every policy should be working to increase the number of homes we build, not unintentionally reducing them,” he added.

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Australia’s push to build 1.2 million new homes is being undermined by a dysfunctional building governance system, the Building Products Industry Council (BPIC) has warned. Source: Timberbiz BPIC says the Federal Treasury’s NCC Modernisation Project is “tinkering at the edges” while ignoring the failures in the building regulatory framework that are slowing construction, driving up costs, and undermining national consistency. “The real problem is not the building code alone, it’s the governing system that sits above it,” BPIC Executive Officer Rodger Hills said. “We have a building governance model that is fragmented, opaque and increasingly unable to support a sector that makes up 10 per cent of Australia’s economy.” At the top of the regulatory structure sit the state and territory building ministers, operating under an intergovernmental agreement (IGA) designed to deliver a unified national approach. BPIC says the reality is far from that vision. Key failures include: Irregular building ministers’ meetings (BMM) with no consistent agenda and no industry involvement. Opaque IGA that has become a maze of overlapping responsibilities. States pursuing conflicting policies and agendas, eroding national consistency. No meaningful feedback loop for industry or the public.   “These are not minor administrative issues,” Mr Hills said. “They are structural failures that directly affect housing supply, productivity and the cost of building in Australia.” BPIC argues the NCC Modernisation Project being undertaken by Treasury is focused too narrowly on the code itself, rather than the governance system that determines how the code is developed, implemented and enforced. “Modernising the code without modernising the governing system above it is like renovating a house on weak foundations,” Mr Hills said. “We’re calling for the Modernisation Project to immediately review the intergovernmental agreement. This is a once-in-a-generation chance to fix a broken framework that is slowing housing delivery and driving up costs.” BPIC is urging governments to adopt a set of practical reforms, including: Regular, transparent building ministers’ meetings where industry and the public have direct input into building policy development. A clear and accountable IGA structure that sets medium and long-term priorities for Australia’s built environment. An Australian Building Codes Board that is a statutory body. Early and meaningful industry engagement on proposed policy considerations likely to affect the code. A unified national vision for Australia’s built environment. Consistent adoption and implementation across states and territories. Measurable performance indicators for regulatory success, a systematic way for industry and the public to provide input, and regular progress updates from the building ministers meetings.   “This is not just a building industry concern,” Mr Hills said. “It affects home buyers, renters, and anyone waiting for a home to be built. If governments are serious about tackling the housing crisis, they must fix the governance system that controls the entire building sector.”

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Sustainable Timber Tasmania has released the annual update to its Three-Year Wood Production Plan 2026-2027 to 2028-2029 to the Tasmanian community for feedback. Source: Timberbiz The Three-Year Wood Production Plan can be accessed on Sustainable Timber Tasmania’s website at www.sttas.com.au The plan identifies forest coupes in Tasmania’s public production forests that are available across a three-year period from which a schedule of harvesting, roading and regeneration operations will be developed. The release of the plan provides the community with an opportunity to identify which forest coupes and future operations may be of interest to them. Inviting community feedback on the Plan is part of Sustainable Timber Tasmania’s commitment to engaging with local stakeholders. Feedback will then be considered during detailed operational planning and decision-making processes. Sustainable Timber Tasmanian encourages the community to: Visit sttas.com.au Read the Three-Year Wood Production Plan View the access map to identify which forest coupes may be of interest to them Contact Sustainable Timber Tasmania with their feedback at stakeholder@sttas.com.au or (03) 6169 2800   The plan was developed from modelling and spatial data and includes coupe names, provisional coupe sizes (not final harvest boundaries), location coordinates, anticipated harvest type and method, and an estimation of anticipated volumes of log products for potential recovery. It contains a significant amount of information therefore, to make it easier for people to read and understand, a spatial layer was developed and available to view on a map of Tasmania. This can be viewed on the Access Map on Sustainable Timber Tasmania’s website at https://sttas.com.au/forests-you/access-map It’s important to understand that not all forest coupes listed in the Three-Year Plan will be harvested, and final harvesting and regeneration details for each coupe may be different from what is listed. This is because Sustainable Timber Tasmania has not yet undertaken detailed operational planning for each coupe. A list of frequently asked questions regarding the plan has been made available for reading on Sustainable Timber Tasmania’s website at www.sttas.com.au

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Victoria’s $1.5 billion forestry transition has ended with a stark warning for every timber town in New South Wales and Tasmania – closing an industry is easy, rebuilding the communities left behind is another matter entirely. Source: Timberbiz Forest and Wood Communities Australia is warning that the closure of Victoria’s forestry transition program should sound an alarm for timber communities in New South Wales and Tasmania, after the scheme wound up without delivering the replacement economy regional towns were promised. “Victoria is the case study every government should be forced to read before making another decision about native forestry,” said Steve Dobbyns BSc (Forestry), Chairman of Forest and Wood Communities Australia. “Politicians told timber workers and regional towns they would be looked after. They promised transition, new industries, new jobs and a stronger future. What many communities got instead was uncertainty, hollowed-out businesses and managed decline. “That is not a transition. That is an industry shutdown dressed up in softer language.” The program closed on the final day of the financial year, more than two and a half years after Victoria shut its native forests to harvesting. Of the $1.5 billion the state committed, only $320 million was allocated through the Forestry Transition Program itself to support affected workers, businesses and communities. The results are stark. A Victorian Auditor-General’s report found the department running the program could not demonstrate that displaced workers were better off. The share of displaced workers in full-time employment fell from around 80% before the closure to around 60% after it, while part-time, casual and contract work increased. Headline job figures of 137 roles created and 436 retained were not supported by reliable evidence, and the Auditor-General found the department could not adequately show whether the program was delivering sustainable employment or business viability beyond 2026. Across Gippsland, employment in agriculture, forestry and fishing has reportedly fallen to 5%, down from 12% five years ago. On the ground, the promised replacement economy has not arrived. Mills at Swifts Creek and Yarram have closed in the past eight months, downstream businesses across Noojee, Powelltown and Orbost are thinning, and towns once built on timber are now being told to stake their future on tourism. “The lesson from Victoria is brutally simple: once the timber industry is gone, the jobs, skills, contractors, mills and supply chains do not magically reappear,” Mr Dobbyns said. “You cannot replace a working production economy with glossy transition brochures, grant rounds and vague promises about tourism. Timber towns are not museum exhibits. They are working communities built around real industries, real skills and real families. “NSW and Tasmania need to look very carefully at what happened in Victoria, because this is exactly what is coming for them if governments keep making forestry policy to appease activists rather than protect regional communities.” The program’s closing months were also dogged by allegations that transition money followed the logs interstate, with Tasmanian native timber shipped across Bass Strait for processing in Victorian mills. The Victorian Greens have since proposed laws to make it illegal for Victorian mills to process native forest timber sourced from anywhere in Australia. Forest and Wood Communities Australia says that episode proves a basic truth that governments continue to ignore – ending an industry in one state does not end the demand for timber. It simply moves the harvest, the jobs, the scrutiny and the environmental responsibility somewhere else. “Victoria banned its own public native forestry and then still needed timber,” Mr Dobbyns said. “That should surprise no one. Homes still need to be built. Floors, stairs, furniture, appearance-grade hardwoods and durable timber products still need to come from somewhere. “If governments shut down responsible Australian supply, they do not save a single plank of demand. They either shift that demand to Tasmania, New South Wales, private land or imports from countries with weaker standards. That is not environmental leadership. It is political outsourcing.” Forest and Wood Communities Australia says the Victorian experience is not a one-off. It is a documented warning. With native forestry under sustained political, legal and regulatory pressure in New South Wales and Tasmania, FWCA says governments must now answer a simple question: do they have a credible plan to protect timber workers and regional economies, or are they prepared to repeat a $1.5 billion transition that left communities worse off? “Before any government even thinks about shutting down more native forestry, it must explain what happens to the workers, the contractors, the mills, the towns and the timber supply,” Mr Dobbyns said. “Victoria spent $1.5 billion and still could not prove it had delivered secure, sustainable futures for displaced workers. That should stop decision-makers in their tracks. “NSW and Tasmania should not be next in line for the same failed experiment.”

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NSW Nationals Leader and Member for Coffs Harbour Gurmesh Singh, Member for Clarence Richie Williamson and Member for Oxley Michael Kemp have slammed the Minns Labor Government’s decision to cut jobs at Forestry Corporation on the North Coast. Source: Timberbiz The MPs have said staff have been informed via email that dozens of jobs, estimated at around 50, including more than 30 in Coffs Harbour alone, are to be cut at a time when regional communities and local economies are already under enormous pressure. These jobs are to be a mix of management, office and field roles. According to an ABC report, a NSW government spokesperson said in a statement that it was working to move affected Forestry Corporation staff to suitable roles in the National Parks and Wildlife Service. It said the creation of the Great Koala National Park (GKNP) would add 100 new roles. “Before the election Chris Minns and Labor promised to help regional workers transition out of forestry. Today, they’re putting politics over people and science,” the MPs said. Critics of the GKNP have included the Timber, Furnishing and Textiles Union, which has publicly declared the carbon method funding the Great Koala National Park should be dumped because it rewards locking forests away instead of managing them. “There shouldn’t be an incentive for future governments to lock up land simply to fill government coffers without solid scientific rationale,” the MPs said in a statement. “With timber harvesting already halted under the moratorium, as well as this current round of job cuts, it’s unclear how the government will be able to claim any carbon credits for this project. “The NSW timber industry is among the most sustainable in the world, operating under some of the highest environmental standards while providing a resource that is desperately needed during a housing crisis. “Chris Minns said it himself – he does not understand regional communities. And he never will. “Today is yet another sad day for the hardworking men and women at Forestry Corporation who are paying the price for Labor’s budget mismanagement.”  

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Furniture and wood-based articles placed on the EU market will have to meet a formaldehyde emission limit of 0.062 mg/m³ after 6 August 2026 under Commission Regulation (EU) 2023/1464. Source: Fordaq The regulation amends Annex XVII of REACH by adding Entry 77 for formaldehyde and formaldehyde-releasing substances. Under the new entry, articles may not be placed on the EU market after 6 August 2026 if, under the specified test conditions, the concentration of formaldehyde released from those articles exceeds 0.062 mg/m³ for furniture and wood-based articles. For articles other than furniture and wood-based articles, the limit is 0.080 mg/m³. The European Commission states that formaldehyde-based resins are used in the production of a wide variety of articles and that their primary use is in wood-based panels, where they act as a bonding agent for wood particles. The regulation also refers to other wood-based products, including furniture and flooring. In the regulation, the Commission says wood-based panels, articles made of wood-based panels or other wood-based articles, and furniture containing wood or other materials are among the main sources of formaldehyde emissions in indoor air where formaldehyde other than naturally occurring formaldehyde is used during production. Appendix 14 sets the reference conditions for measuring formaldehyde released into indoor air from covered articles. The regulation specifies test chamber conditions including a temperature of 23 ± 0.5°C, relative humidity of 45 ± 3%, a loading factor of 1 ± 0.02 m²/m³ and an air exchange rate of 1 ± 0.05 h-1. The steady-state concentration measured in the test chamber is used to verify compliance with the formaldehyde limit. The restriction does not apply to articles in which formaldehyde or formaldehyde-releasing substances are exclusively naturally present in the materials from which the articles are produced. The regulation also lists exemptions for articles exclusively for outdoor use, certain construction articles used outside the building shell and vapour barrier, articles exclusively for industrial or professional use unless they lead to exposure of the general public, food-contact articles, and second-hand articles.

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Metsa has opened a new packaging design studio in Milan, Italy to accelerate packaging development especially in its key European markets. The new studio enables earlier and closer collaboration between Metsä Board and its customers, allowing joint testing and refinement to bring real-world-ready packaging solutions faster. Source: Timberbiz Packaging is no longer just about protection and logistics. Brands are under increasing pressure to reduce material use, replace fossil-based materials, meet tightening regulations and still deliver strong shelf impact. At the same time, expectations for speed have fundamentally changed: solutions must be developed faster, with greater certainty around performance, recyclability and compliance. Metsä Board is addressing this shift with this new design studio in Milan bringing together design, material expertise and data-driven insights. It enables customers to develop packaging solutions that are more efficient and fit to their requirements. “Milan offers a unique combination of a strong packaging ecosystem and a world-class design environment. Being there allows us to work more closely with our customers and strengthen collaboration across key European markets,” said Erja Hyrsky, SVP Commercial Operations. By combining AI-supported design, simulation possibilities and material expertise, solutions can be explored and tested much earlier in the process, reducing uncertainty, accelerating decision-making and shortening development cycles. “Our customers don’t just need new packaging ideas – they need solutions that are validated for actual use conditions, and they need them faster than ever. By combining design, materials and data, we can move from concept to validated solution much earlier, with greater confidence,” said Erja Hyrsky. The Milan studio is built for a new way of working. Instead of sequential development, design, materials and performance are advanced in parallel, making it possible to improve material efficiency while maintaining performance requirements. “Instead of developing solutions in isolation, we can test and refine them together, making sure they are ready for market introduction much earlier,” said Ilkka Harju, Packaging Services Director. “For brands in segments such as food, pharma and beauty, where packaging plays a critical role both functionally and commercially, this integrated approach is becoming essential.”

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The Forest Stewardship Council (FSC) has secured substantial EU LIFE funding for a €6.7 million project, including €4 million from the EU LIFE program, together with a broad range of project partners. Source: Timberbiz The FSC EU LIFE FIBRA project will explore more efficient and responsible use of fibre-based materials in Europe, building on the credibility and robustness of FSC’s certification system. It will look at how FSC can strengthen its existing recycling solutions, support potential circular business models such as reuse, repair, and take-back, examine how agricultural waste streams may play a role in the FSC system, and support companies and public buyers in making more responsible material choices. Building on FSC’s existing systems, standards and core mission of promoting responsible forest stewardship, the project will strengthen FSC’s role in a changing market. “As the way we use materials changes, FSC is evolving with it,” said Subhra Bhattacharjee, Director General of FSC. “This project will define our role in a future market; from the way materials are sourced to the way they are kept in circulation over time.” FSC has been championing forest regeneration for over 30 years and with the introduction of the FSC RECYCLED label 15 years ago FSC has been directly supporting recycling too. But recycling and renewable fibres aren’t enough. As demand for renewable materials grows across Europe, industries in packaging, construction, furniture, and other sectors are turning to forest-based fibres instead of fossil-based resources to cut carbon emissions and support climate objectives. However, relying solely on virgin forest resources is not a sustainable long-term solution. In parallel, companies are facing increasing regulatory requirements under EU sustainability legislation, including expectations around resource efficiency, circularity, and traceability. Thanks to the EU LIFE program, FSC can now scale its work on exploring solutions in a broad and structured way. The FSC EU LIFE FIBRA project FSC’s existing systems are designed for linear supply chains and do not adequately capture circular flows. The project will develop and pilot tools, guidance, and verification approaches for how to enable circularity in FSC and focus on exploring four key areas: potential circular business models in FSC Chain of Custody, including piloting a Circular Economy reporting module support increased uptake of recycled materials including market guidance and public procurement support explore how to potentially integrate alternative fibre sources such as agricultural residues from certified sources into FSC certified supply chains exploring potential approaches to cascading use of fibres supported by improved traceability and digital integration.   Together, these activities are designed to be fit for FSC’s existing certification system and provide practical, scalable support for companies adapting to evolving market and regulatory requirements. “This funding allows us to scale work that we have been laying the groundwork for over the past three years,” said Loa Dalgaard Worm, Global Lead of the FSC Circularity Hub. “It is important to me that we develop solutions that are fit for market demand and deliver real impact on the ground, without reinventing what FSC stands for: ensuring that the true value of forests for nature, the economy, and society is recognized.” The project will be implemented across eight European countries – Denmark, Sweden, Finland, Germany, Austria, the Netherlands, Italy, and France – with partners from industry, academia, and civil society. The project consortium behind the project consists of FSC International, FSC Denmark, FSC Sweden, FSC Finland, FSC Germany, FSC Netherlands, FSC Italy, FSC France, Aarhus University, University of Southern Denmark, Circle Economy, ECOS, World Business Council for Sustainable Development, and Ellen MacArthur Foundation.

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Australian Forest Products Association (AFPA) welcomed the new Private Members’ Bill, introduced by Federal Member for Lyne Alison Penfold MP, aimed at safeguarding the integrity and transparency of Australia’s carbon credit scheme. Source: Timberbiz AFPA acting CEO Richard Hyett said maintaining confidence and credibility in the ACCU scheme was essential for supporting investment in genuine emissions reduction projects and Australia’s transition to net zero. Ms Penfold’s proposed Carbon Credits (Carbon Farming Initiative) Amendment Bill 2026 proposes simple changes to improve transparency and integrity. This includes requiring the Federal Minister to only make an ACCU method if it’s fully consistent with the Objects of the Act, and if all relevant science and information to develop the method is released for public consultation to allow proper scrutiny. “Our ACCU scheme was designed to encourage real carbon abatement and high-integrity environmental outcomes, and it’s important the scheme remains focused on delivering genuine emissions reductions rather than being used to retrospectively fund government policy decisions,” Mr Hyett said. The proposal follows the NSW Government’s plan to develop an Improved Native Forest Management Method (INFM), which is currently being considered by the Commonwealth’s Emissions Reduction Assurance Committee. “In a recent submission, we have advocated for strong governance, transparency and safeguards across Australia’s carbon credit framework and have previously raised concerns about maintaining public confidence in the scheme,” Mr Hyett said. “Industry applauds and welcomes Ms Penfold’s Private Members’ Bill. Carbon credit methodologies must be evidence-based, transparent and support practical emissions reduction opportunities across productive industries, including sustainable forestry. It’s also essential to drive opportunities to expand the ACCU scheme’s participation through productive abatement methods including through the built environment. “We look forward to continuing to work with governments and industry stakeholders to ensure the ACCU scheme remains credible, supports regional Australia and delivers lasting environmental outcomes.”

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For New Zealand brokers placing forestry, logging and heavy plant risks, the most important test of specialist cover is not just what is on the slip. It is also the one that arrives months later, when a harvester burns out on a remote skid site or a crane topples on a steep East Coast forestry road and the client discovers what their policy is actually worth. Source: Insurance Business That distinction between capacity that looks strong at placement and capacity that performs at claim time is where specialist insurance either proves itself or quietly fails. The point has been sharpened across the Tasman by ARTes Specialty, a London-based managing general agent that has spent the past two years building a plant and equipment book in the Australian market. ARTes has launched three products into Australia – commercial loggers, plant and equipment, and, most recently, an integrated crane and rigging policy – all backed by Lloyd’s capacity, distributed locally and with claims handled in-country. Chris Thomas CEO of ARTes Specialty, has been unusually blunt about the limits of the paper itself. “Capacity on its own isn’t enough,” he said of the insurer’s Australian expansion. It is a striking admission from a business that sells capacity, but it speaks to a scepticism many brokers carry quietly. Two markets can offer near-identical security, wording and price, and none of that paperwork reveals whether anyone in the country understands a rigging contract, can inspect a damaged crawler crane, or can move a claim along before a contractor’s cash flow collapses. “Brokers and clients need confidence that there are experienced people on the ground who understand the local market, can respond quickly and will be there when a claim occurs,” Thomas said. For New Zealand, the argument lands squarely on forestry. Forestry and wood products remain among the country’s largest export earners, with revenue forecast to rise about 2% to NZ$6.3 billion in the year to 30 June 2026, according to the Ministry for Primary Industries forestry and wood-processing data. The sector supports a workforce of more than 42,000 people, on Treasury’s medium-term outlook for forestry exports, and runs on high-value, hard-to-replace machinery operating on unsealed, steep terrain in regions such as Gisborne, Northland and Southland – exactly the conditions where a single loss can sideline a contractor and where recovery is slow, costly and specialised. The gap between cover on paper and cover in practice is not hypothetical here. A North Island forestry business was left NZ$85,000 out of pocket after an insurer declined a Cyclone Gabrielle–related claim, in a dispute that turned on recovery wording, machinery access and a requirement for written consent before equipment was moved, as detailed in this recent ruling on a declined Cyclone Gabrielle forestry claim. For brokers with rural and forestry portfolios, the case is a reminder that the decisive questions are often buried in how a policy responds after the event, not in the headline limit. That points to a sharper set of questions at placement. Where does claims adjusting actually happen, and who does it? Does the person assessing the loss understand the equipment and the contractual obligations the client operates under? Can the insurer respond inside the client’s operating timeframe, or will a remote loss sit in a queue while the business haemorrhages money? New Zealand underwriters working in the space make much the same point. Matt Ziegler, head of pacific agencies at Underwriting Agencies of New Zealand (UANZ), whose Auckland-based firm covers cranes, excavators and forestry equipment, argues that service – not price – is now the differentiator in a softening market. “It’s 100% the service game at the moment,” he said when speaking to a panel of specialist underwriters on soft-market pressures, advising brokers to compete on claims handling, wording and value. The context matters because capacity itself is no longer scarce. Specialist underwriting agencies have proliferated in New Zealand, holding appetite for precisely the harder-to-place risks that mainstream insurers approach cautiously. As the New Zealand Underwriting Agencies Council set out at its recent Christchurch expo on the evolving risk market, the real challenge for brokers is no longer finding capacity but knowing where to look and, by extension, which providers will still be answering the phone when a complex loss lands. For a generalist risk, these distinctions may be marginal. For a logging contractor or crane operator whose entire business rests on a handful of high-value machines, they are the difference between a claim that gets paid and a claim that gets argued. As more overseas and Lloyd’s-backed capacity targets Australasia’s underserved specialist sectors, the temptation is to treat capacity as a commodity and place on price and security alone. The uncomfortable takeaway for brokers is the same on both sides of the Tasman: The time to test whether specialist capacity is real is before the loss, not after.

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Forest and Wood Products Australia (FWPA) is inviting applications for three Non-Executive Director positions, offering experienced leaders the opportunity to help guide one of Australia’s key industry research and development corporations. Source: Timberbiz The appointments form part of FWPA’s 2026 board renewal process, with successful candidates to join the board following the Annual General Meeting in November. FWPA is seeking individuals with strong governance capability and a passion for driving impact across the forest and wood products value chain. FWPA plays a unique role in bringing industry and government together to invest in research, development, and market growth that strengthens the competitiveness and sustainability of the sector. This is an opportunity to contribute at a national level to help shape strategic decisions that support innovation, productivity, and sustainable growth across Australia’s forest and wood products industry. As the industry’s research and development corporation, FWPA invests levy and matched government funding into programs that deliver practical outcomes for growers, processors, manufacturers and end-users. With annual revenue of approximately $21.5 million, FWPA supports initiatives spanning forestry, manufacturing, the built environment, market development, and the commercialisation of new technologies and products. Board positions offer a unique opportunity to: Contribute to an organisation delivering tangible, industry-wide impact Influence investment in research, innovation and market development Work at the intersection of industry, government and research Help shape the future use of sustainable, renewable wood products Collaborate with a highly engaged and skilled Board and executive team   FWPA is seeking candidates with expertise across areas such as: Forestry and natural resource management Wood products manufacturing Construction, design and the use of timber in the built environment Market dynamics, marketing and promotion Technology, innovation and RD&E commercialisation   Candidates with formal governance training (such as AICD or equivalent) are strongly encouraged to apply. The roles are remunerated, with an expected commitment of approximately 26 days per year, including board meetings, preparation and travel. Applications are being managed by Directors Australia. To apply, candidates must submit: A current resume (maximum three pages) A one-page cover letter addressing the selection criteria Applications close: midnight Sunday, 12 July 2026. For further information and to apply, visit: https://directorsaustralia.com.au/vacancies/ For confidential enquiries, contact Glee Mitchell, Directors Australia, on 0417 065 408 or via glee.mitchell@directorsaustralia.com

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Private forest owners across NSW may be banned from harvesting their trees by the NSW Government and Timber NSW is calling for Minister Penny Sharpe to outline what compensation for lost earnings will be available to private forestry owners across the entire State. Source: Timberbiz According to Timber NSW Chief Executive Maree McCaskill, the creation of the Great Koala National Park will have dire consequences for owners of private forests. Timber NSW is calling on Minister Penny Sharpe to clarify what compensation will be available to private forest owners in NSW who may be banned from harvesting their trees due to the creation of the Great Koala National Park. “The NSW Government will be paid by Australian taxpayers for shutting down the timber industry in northern NSW. That’s an undisputed fact and it all stems from the Improved Native Forest Management carbon credit scheme which is used to calculate payments under the Australian Carbon Credit Unit Scheme,” Ms McCaskill said. “Once again, the reality as it’s experienced by the people of NSW is completely different to the Minister’s words. “What the Federal Government says is that under the Australian Carbon Credit Unit Scheme, the Emissions Reduction Assurance Committee (whoever that is) must be satisfied that a method complies with the legislated Offsets Integrity Standards. “Those standards require that credited abatement reflects real, measurable, and additional emissions reductions. If leakage is underestimated, more ACCUs could be issued than the true global emissions benefit justifies, undermining the environmental integrity of the scheme.” Under the Australian Carbon Credit Unit Scheme, there can be no private native forest harvesting above a calculated baseline level, meaning private landowners would lose control of their own income while Australian taxpayers fund the NSW Government for enforcing these restrictions. According to Timber NSW what this really means is that there can be no private native forest harvesting in the State above its ‘baseline level’ which is calculated as the average monthly wood volume extracted from private native forests over the previous 4-year period. The Sydney Morning Herald has reported that; “There are also leakage clauses, providing penalties if logging of public forest increased elsewhere in the state on private or public land, or if there is an increase in imports of unsustainable timber”. Timber NSW argues that the carbon leakage figures used in the scheme are misleading, with independent research from the University of Queensland calculating timber harvest leakage at over 80%, far exceeding the maximum 40% discount permitted by the Commonwealth. What is not reported is that only a maximum of 40% of the carbon leakage (both domestic and international) can be discounted by the Commonwealth despite that figure being widely debunked and calculated by Dr Tyron Venn et al from UQ at more than 80% for timber harvest leakage, with most of the demand met by elevated-risk countries. According to Timber NSW this means that: communities in northern NSW are shut down Private forest landowners no longer control their own income Australian taxpayers are funding the NSW Government for forcing those changes The real impact of carbon emissions into the atmosphere is assumed away because it will happen overseas.   The forestry sector supports thousands of jobs across NSW and contributes significantly to regional economies through timber harvesting, transport, processing and manufacturing. It is an undisputed fact that sustainably managed state forests can and do deliver both conservation and economic outcomes. Timber NSW has warned that reduced domestic timber production will likely shift demand to overseas suppliers in elevated-risk countries, meaning the scheme effectively exports carbon emissions rather than reducing them globally.

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Timber Queensland has launched the Colin MacKenzie Award to strengthen timber design and construction capability. The Colin MacKenzie Award for Technical Excellence in Timber Application and Use is a new national initiative recognising outstanding technical achievement and leadership in the use of timber across Australia’s building and construction sectors. Source: Timberbiz The award was launched at the WoodSolutions event, Queensland Timber: Trajectory Award Winning Exemplars Showcasing the Way to Modern Construction, that brought together leaders from the forest and timber, engineering, architectural and construction industries. This initiative responds to widespread calls from industry to formally recognise Colin MacKenzie’s legacy following his passing on 24 March 2025 and to continue the work he championed in lifting capability, innovation and confidence in the use of timber across Australian construction. Widely regarded as “The Timber Expert”, the award reflects Mr MacKenzie’s lasting contribution to advancing timber as a high-performance, compliant and fit-for-purpose construction material across a diverse range of applications, from buildings to infrastructure and beyond. Timber Queensland CEO Mick Stephens said the award is intended to recognise those delivering real technical impact across the sector. “The award is intended for engineers, architects, designers, builders and researchers who are delivering real technical impact and helping to strengthen capability across the sector,” Mr Stephens said. “This is not limited to building projects it recognises the full breadth of timber innovation, including infrastructure, engineered solutions and other applications that demonstrate excellence in using or enabling the use of timber.” Mr Stephens said the award will focus strongly on outcomes that contribute to advancing industry knowledge and practice. “Judging will focus on technical merit, innovation, and the contribution a project or individual makes to improving knowledge, collaboration and sustainability in timber use,” Mr Stephens said. “It will also consider alignment with Colin’s vision for timber as a high-performance, compliant and fit-for-purpose construction material.” A national judging panel comprising respected leaders from across engineering, design and specification will assess entries, ensuring a strong emphasis on technical rigour and industry relevance. “We are honoured to have Professor Benoit Gilbert, Griffith University, Rob Mansell, National Specification Manager, Hyne Timber, Dr Andrew Magub, Principal, Architectus, Kim Harris, Technical Advisor, AKD and Matt Smith, Senior Technical Consultant, Timber Queensland join the inaugural selection process,” Mr Stephens said. By recognising leading projects and individuals, Timber Queensland said the initiative will help drive greater confidence in timber and support the continued development of capability across the industry. Mr Stephens said the recipient of the inaugural Colin MacKenzie Award will be honoured at the Queensland HIA Building Awards in Brisbane on 13 November 2026. “We gratefully acknowledge the support of the foundation partners, including Timber Queensland, to launch this award. The seed funding has enabled the national award to be offered annually for the next five years at which point the goodwill and delivery of the award can be reviewed going forward,” Mr Stephens said. The Queensland Building and Construction Commission (QBCC) is supporting the 2026 award as Presentation Sponsor, recognising Mr MacKenzie’s long-standing expertise, collaboration and trusted advice across a range of QBCC initiatives and the broader development sector over many years. The QBCC’s involvement with an award associated with technical excellence aligns with a commitment to promoting high standards, capability and integrity withing the building and construction industry. Further details about the application and judging process is available at https://www.timberqueensland.com.au/colin-mackenzie-award

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Australia’s first National Environmental Protection Agency was launched this week with stop-work-style powers, expanded audit powers and penalties of up to $16.5 million for serious corporate breaches. Native forestry is shielded for now, but that protection falls away in 12 months. Source: Timberbiz According to the Federal Government the National EPA, the first in Australia’s history, underpins the Albanese Government’s landmark environmental law reforms, which were passed in December last year. It is a key plank in the reforms’ promise to strengthen environmental protections and speed up the approval of critical housing, energy and minerals projects. The government says that the National EPA will be a modern and effective regulator that helps people understand Australia’s environmental laws and makes sure those laws are followed. These include the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) and laws regulating sea dumping, ozone protection and synthetic greenhouse gas management, hazardous waste, product emissions standards, recycling and waste reduction and underwater cultural heritage. The role of the National EPA will include issuing permits and licences, environmental assessments and approvals, compliance and enforcement activities and the assurance, monitoring and auditing of the operation of accreditations, bilateral agreements and bioregional plans under the EPBC Act. Forest and Wood Communities Australia says the forestry sector now has just 12 months to prepare for the most significant expansion of federal environmental enforcement in a generation, after the National Environmental Protection Agency commenced on 1 July. “From 1 July, the clock started ticking for every native forestry business still operating under the Regional Forest Agreement framework,” said Steve Dobbyns BSc (Forestry), Chairman of Forest and Wood Communities Australia. “The sector has been told it has 12 months, but 12 months is not long when you are talking about federal approvals, accreditation, legal risk, wood supply contracts, contractors, mills and regional jobs. “Australian native forestry is not an environmental free-for-all. It is already managed through state forest practice systems, detailed environmental prescriptions, regeneration obligations, threatened species protections, audits and decades of scientific assessment under the RFAs. The danger is that Canberra builds a duplicate approval system that treats one of the most heavily regulated industries in the country as if none of that regulation exists.” Launched by Environment Minister Murray Watt and led by inaugural chief executive John Bradley PSM, the agency can now issue urgent environment protection orders where serious environmental harm is alleged, expand compliance audits and pursue breaches through the courts. The most serious penalties can reach $16.5 million per company and may be linked to the benefit gained from breaking the law. Native forestry conducted under a Regional Forest Agreement remains outside the full reach of these new arrangements until 1 July 2027. Operations outside an agreement have already required federal approval since December 2025, and current agreements allow approved harvesting to continue only until 30 June 2027, after which the exemption falls away. National Environmental Standards are now being developed and consulted on. Those standards will determine how forestry operations are judged under Commonwealth law and whether existing state systems are properly recognised or overridden by another layer of federal control. The five remaining Regional Forest Agreements across New South Wales, Tasmania and Western Australia have underpinned native forest management for a quarter of a century. They were built on regional scientific assessments, conservation reserves, sustainable yield modelling and state-based forest practice systems. When the exemption ends, thousands of regional workers and the communities built around them will face a federal regulator armed with stop-work powers for the first time. “This is the point where government must decide whether these reforms are about genuine environmental outcomes or whether they become another political weapon against Australian forestry,” Mr Dobbyns said. “You do not protect forests, jobs or the climate by strangling Australian production with duplicate green tape and then importing more timber from countries with weaker environmental standards. That is not conservation. That is environmental outsourcing.” Conservation groups are already pressing the new regulator to use its powers harder, including on land clearing and activities they claim threaten species such as the koala. It leaves the timber sector caught between a countdown clock and mounting political pressure to bring the full force of the new laws to bear the moment the exemption lifts. Forest and Wood Communities Australia says the federal government must guarantee that the new standards recognise the world-leading regulation Australian forestry already operates under, rather than treating sustainable domestic timber production as the problem. “The Commonwealth must not use these reforms to pretend that native forestry is unregulated, unscientific or unmanaged,” Mr Dobbyns said. “Our industry grows and regenerates forests, supplies renewable building materials, supports regional families and operates under rules that many imported products would never meet. “If the new system rewards activist pressure over evidence, the losers will be regional workers, local mills, Australian builders, housing affordability and the global environment.” The Australian Forest Products Association has warned that losing the RFA framework would bury native forestry in green tape and drive greater reliance on imported timber, including products from jurisdictions with weaker environmental oversight than Australia. Forest and Wood Communities Australia is calling on the federal government to work directly with forest scientists, state regulators, workers, contractors, processors and regional communities before the 1 July 2027 deadline. “Regional communities cannot be treated as collateral damage in another Canberra deal,” Mr Dobbyns said. “If the government is serious about timber security, housing supply and better environmental outcomes, it must back sustainable Australian forestry, not regulate it into uncertainty.”

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My prediction of impending drops in export log prices has regrettably come to pass.  Wharf gate sales dropped NZ$6-10 per m3 in June across NZ ports.  This was due to the combination of weaker selling prices and higher shipping costs combining into an imperfect storm. The better news is China market fundamentals remain ok with major further price drops unlikely to be in the mix. The price drop in June has seen a rapid slow-down in deliveries to NZ ports and that is what is needed to see any sort of recovery in July. I had a respondent to my last report suggest we need to “stop China playing with us”.  I want to put this one to bed as I have also often heard conspiracy theorists commenting negatively about the supposed China grand domination plan. I have been directly involved in the China export log market for 30+ years.  Let me assure you, there is no grand plan. The important point here is NZ is, by a significant margin, the largest supplier of softwood logs to China, currently hovering around 70% – 80% of all supplies. A sales price tempering impact is what China traders get for NZ logs sold into the China domestic market. They currently pay NZ exporters US$124 per m3 A grade shorts basis. The domestic wholesale price is US$120 per m3, slightly closer negative margin than I reported in May. In May/June another impact was a large NZ exporter trying to push prices above US$130 per m3 until vessels were sailing with some volume not contracted or LC’s issued against. This very silly history repeating tactic created nervousness amongst buyers who then folded their arms until the prices landed lower.  This is a “stupid is as stupid does” NZ plan, not a China plan! The domestic wholesale price in China is driven by manufacturing and sales – significantly furniture and moulding components to the US.  Current manufacturing stats across the Eastern seaboard suggest mild but not concerning weakness. If there is a grand plan it will be more about what pops up in Donald Trump’s head when he wakes up each morning. We see ample evidence of that being a pretty scary place.  The imposition of tariffs and propensity for war and the wide-ranging consequences obvious to all except Donald Trump, is what is controlling our collective destinies at present. There is no grand plan in China to gear prices for NZ logs. If we should shorten supply, prices will lift, but only in so much as China domestic pricing will allow. The China market is vast with multiple players operating in a highly dynamic market driven by domestic and export sales and the RMB/US$ exchange rate.  And like in NZ, each player is trying to play their own game whilst protecting their own profits, mostly without regard for others. The softwood log inventory across the Eastern seaboard is sitting around 2.54 million m3 round numbers, down 60,000 m3 in April which regarded as unchanged by the market. A reason for likely good recovery is daily consumption which continues to sit around 60,000, a pretty good utilisation for mid-summer conditions.  There is potential for July inventory to slip below 2mil m3.  That will also promulgate recovery. Exporters continue to turn eyes toward India with solid demand and elevated deliveries not appearing to scare the market in to price drops.  NZ Radiata pines logs are favoured by India sawmillers, being much better quality than other supply sources. There is no question the impending NZ/India Free Trade Agreement is elevating interest with shipments expected to increase as a consequence.  But this market is not large so it will not take much for NZ exporters to destroy their own price if too many want a slice of the action. Current CFR prices are in the late US$160’s per m3 compared to US$124 for the same grade in China.  But shipping costs to India are much higher at around US$70 compared to mid US$40’s for China fixtures.  This then nets back to a better price point currently for India trade. It is also great to see the NZ domestic sawmilling sector going gang buster – or at least a mild form thereof.   Long may that continue! Allan Laurie, Managing Director, Laurie Forestry.           

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