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FSC & PEFC Certified Products
are available on request

FSC
PEFC PEFC/01-31-140
Promoting sustainable
forest management
www.pefc.org
July 2016

Supply Update

Demand for Western Red Cedar from around the World remains stronger than supply and prices keep drifting up. The demand for wide widths (200mm and wider) has seen unprecedented lifts over recent months. Some sizes in western red cedar have doubled in cost over the past 10 years. Our data shows despite recent price increases here in NZ we have not fully recovered the higher costs. This means more price hikes to come here in NZ.

Western Red Cedar logs awaiting the saw at a Western Forest Products sawmill

White Oak appears to have settled down price wise and we are hoping to see no more increases in the coming months, but we are only bit players in a global market. The main driver has been the demand for barrels for making bourbon and wine and these appear to be steady and no further pressures on the supply side. Hopefully this will settle the market down.

WFP Western Red Cedar awaiting shipping to a customer

Radiata Pine clears are in a very tight supply scenario and we are struggling to get enough . The supply is constrained but the lack of pruned logs available as well as strong demand from the US and Europe for Clear Radiata Pine timber, means that sawmills are demanding higher prices. Not surprising given that they have been marginally profitable for years.

Carterton processing yard for Timspec, with WFP Cedar awaiting filleting

Kwila supplies and market prices are surprisingly unstable. One very exciting and positive news we received this past week was an update from our main supplier advising that they would be FSC certified before the end of the year. Fantastic effort and we are proud to be a loyal and enthusiastic supporter.

Prices – I have had a lot of complaints about the price increases we are all facing and of course we like everyone else would much prefer stability. We lose a lot of money in volatile times, especially when prices fall cause we have so much stock. Some of our competitors like us miss cost increases sometimes and forget to put up prices even though in some cases they should have done so. In recent times there has a been a general reluctance to raise some prices as importers here grapple with the magnitude of increase and worry that the market may change away from western red cedar for example. The problem is that you cannot change something as profound as the declining supply and for years Cedar has been under valued. Way undervalued. The current price levels here are still way under where the “value lies” . it is impossible to replace Cedar’s stability and durability for anywhere near the same cost. Something all importers are extremely aware of. If we could we all would! OUR NEW AUGUST PRICE LIST OUT ON OUR WEB SITE IS ACTUALLY PRICE REDUCTIONS.. WHITE ASH, AUSTRALIAN OAK AMONGST 2 SPECIES AT LOWER PRICES...

The last big change is the surge in the cost of Radiata Clears, this has happened at almost the same time as Finger Jointed (FJ) Radiata costs have crashed. The over capacity in the production of FJ Radiata and the cheap imports has led to some fantastic deals. In the case of weather boards the relativity between FJ and Clears is now widening as we see Clears getting more expensive. The drive on costs for Radiata Clears is driven by the cost for pruned Radiata logs. Unfortunately again for some (20 years) pruned logs have been relatively too cheap. In fact so much so that foresters stopped a lot of pruning and will if not changed lead to a lack of Radiata Clears

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Previous ArticlePrevious Article
Current Feature Stories
July 2016
/imagesdb/Issue/8a261184-b6e1-4acc-abdb-d2bd5d20468b.jpgStaff News
A few changes with Staff. See below for details.
/imagesdb/Issue/0740b360-55b1-46ff-b2ea-708efb686bb7.jpgSupply Update
No great surprises currently. Costs here and there rising although often times mitigated by exchange rate fluctuations.
/imagesdb/Issue/3c43d31e-8ab4-4367-99c5-7457450efb1d.jpgMarket Update
As we all see the huge number of buildings being renovated and new builds it is sometimes hard to comprehend the ups and downs. June and July were not especially busy.
/imagesdb/Issue/edd0f162-bcb7-4a45-86a8-8d0515fb693f.jpgNew Web Site
Changing times mean we have updated our web site. New graphics and images as well as more oomph make it awesome.
Current Feature Stories
March 2016
/imagesdb/Issue/668f91ff-691a-4364-bd2d-5d92224a7a45.jpgFrom a Global perspective
Demand for naturally beautiful appearance timbers is strong around the World. Supply is struggling to keep up for most.
/imagesdb/Issue/991f6b11-d005-4384-af81-6f0583c15cb9.jpgWeather boards and MORE
We have updated our CertClad weather board systems and they are now available on www.certclad.co.nz as well as www.masterspec.co.nz
/imagesdb/Issue/f27605de-242b-44d0-8b5f-623fcfd944d9.jpgBlackwood a new treasure
Blackwood timber has sparked some interest in the past little while. This beautiful brown coloured timber, comes to us with PEFC certification.
/imagesdb/Issue/45e50f88-976a-47d3-961a-22f5ea01686e.jpgSilver Linings
The windthrown Indigenous Forests of the West Coast, faced a devastating storm in 2014. There was a lot of damage and trees blown down, as a result the Department of Conservation took the unusual step of allowing limited extraction of some timber.
/imagesdb/Issue/fd2340e3-a8a0-4389-a7b9-325487f095a3.jpgHeating up slowly
A slow start to the year, and then the start of March saw orders start to ratchet up.
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TIMSPEC (Timber Specialist Limited) PEFC & FSC Certified Products are available on request
Auckland
64 Stoddard Road
Mt Roskill
ph: (09) 620 0260
fx: (09) 620 0261
web: www.timspec.co.nz
Carterton
30 Kent Street
Ph: (06) 376 9381
Fx: (06) 379 9382
email: shane@timspec.co.nz
Christchurch
9B Francella Street
Bromley
ph: (03) 384 5287
fx: (03) 384 5289
email: gareth@timspec.co.nz
PEFC
PEFC/01-31-140
Promoting sustainable
forest management
www.pefc.org
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