Changes in the Southeast Asian forest products markets will ripple internationally as the region dominates hardwood log and woodchip exports to Asia
RISI Economists expect that major changes in Southeast Asian exports over the next two decades will impact the timber and forest products market on a global scale. These and other developments were published today in, Southeast Asia: Regional Timber Supply and Market Outlook, a new study by RISI—the leading information provider for the global forest product industry.
"With extensive hardwood resources and wood processing industries, Southeast Asia is a key exporter of tropical hardwood logs and woodchips. The region enjoys low freight costs to major producers of pulp, plywood, flooring, and furniture in influential Asian markets," said Robert Flynn, director of International Timber at RISI and co-author of the study.
"Southeast Asian woodchip exports to Japan and China produced 5.6 million tonnes of bleached-hardwood kraft pulp that would have otherwise been imported from global markets. This affects South American producers of hardwood pulp as well as competitors in the woodchip trade in Australia, Chile and South Africa. Similarly, we are expecting to see a significant reduction in hardwood log exports in the future. Considering this region supplied 75% of global tropical hardwood log exports last year, this trend will influence wood products and timber markets internationally," continued Flynn.
"Changes in Southeast Asia's teak production and exports to India and China will also have important implications for timberland investors growing teak in Latin America," added John Turland, Senior Economist of International Timber at RISI.
Focusing on demand drivers and current investment in new plantations, the study analyzes the competitive impact of Southeast Asia in terms of resources, timber production and exports.
Analysis included in Southeast Asia: Regional Timber Supply and Market Outlook:
Analysis of drivers determining potential timber supply such as competition for land, economic development, population pressures, and international initiatives
Overview of forest investment challenges in this region and how changes may impact timber growers around the globe
Outlook on forecasted plantation investment trends and future plantation wood fiber supplies
Countries included in the study: Indonesia, Malaysia, Thailand, Vietnam, Philippines, Myanmar, Cambodia, Lao PDR, Brunei Darussalam, Singapore, Timor-Leste, Papua New Guinea and Solomon Islands
