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FSC & PEFC Certified Products
are available on request

PEFC PEFC/01-31-140
Promoting sustainable
forest management
November 2017

Timber supply in 2017

2017 has seen the supply of many timbers under the pump Kwila and Western Red Cedar being just two of them. Kwila supply is transitioning to FSC certified and this means LESS and as well higher prices. The supply demand balance has moved a lot this year as the cheap prices we saw earlier in the year meant strong demand and now we are seeing higher and higher prices so consequently we expect to see reduced demand. Western Red Cedar faces good demand and same issues less supply, mainly due to less available resource. The 5-800 year old clear grade Cedar we are demanding here in NZ is a limited resource.

Canadian/NZ exchange rate change over 2017

Unfortunately the cheap prices (relative to other products) has meant strong demand and unbalanced market forces. We are seeing substitution to other cheaper products. Obviously being mainly an importer the value of the NZ dollar is a critical factor for us. The NZ dollar has been on a downward trend (against the Canadian, Euro, Aussie, and US dollars) meaning higher NZ dollar costs for us.

The Euro/NZD exchange rate has change markedly over 2017 as well

This is especially true of the Euro (Accoya, Euro White Oak and Beech), Canadian dollar (Cedar), and Australian dollar ( Jarrah and Australian Oak). The impact on the costs for Cedar are around 9% and for Euro cost imports it is higher again at 12+%. Hard to pass on with the competitive market we all face.

Chermainus Sawmill is where most of our Western Red Cedar from WFP comes from.

The Australian hardwoods we supply are mainly sourced from Victoria ( Australian Oak or Victorian Ash) and Jarrah from West Australia. The Victorian supply has had hiccups in log supply and the sawmill that we work with has updated us this week with news that supply is reduced and prices up. Not unexpected. Details in the Timber stocks section.. check it out

European Hardwoods are one area for new supply we are giving some thought to and a recent trip confirmed some beautiful well priced stock is available and we are trialling some new grades and sizes in European Beech. see below

European Beech PEFC stock from Central Germany

European Beech FSC stock from Austria.

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Current Feature Stories
November 2017
/imagesdb/Issue/3fb6d5fd-68ae-4034-9ab8-d48ec2da1f06.jpgTimspec gets approval for cpd points for ADNZ
Timspec can now provide presentations which will earn cpd points for ADNZ members as well as NZIA members.
/imagesdb/Issue/96ec48ee-8b09-4847-969e-a3a39a0190ed.jpgTimspec and Staff News
A pleasure to welcome some new staff. In Auckland we have some new staff in the warehouse as well as in Accounts and the architectural team.
/imagesdb/Issue/514047d3-a602-4c19-bbca-b00644b4fd05.jpgAccoya has been awarded the highest level of Declare label
The Declare label has been added to the arsenal for Accoya.
/imagesdb/Issue/fac0cfce-6568-4773-824b-53782195576f.jpgTimber supply in 2017
Hiccups with a few of the supply chains, notably Western Red Cedar and Kwila.
/imagesdb/Issue/a29e5a5d-0a3c-4055-9e51-9ed6b75f9b98.jpgChristmas holidays and 2017 in review
2017 was a good year, not as good as 2016, but that was one out of the box.
Current Feature Stories
August 2017
/imagesdb/Issue/4f176878-b3f5-4c1e-a81d-4becc7a83abc.jpgEmails & Technology
we like all are trying to update things and become more efficient with accounts and information.
/imagesdb/Issue/5a683c38-ab2e-482d-bc26-49004a05c2ea.jpgStaff News
A few changes in staff, with some coming and some going. Overall pretty stable. We are looking for some more talent.
/imagesdb/Issue/8e64db45-79ee-4e03-8970-65aa52a393c8.jpgSupply Overview
Supply dynamics show tight Cedar supplies, US hardwoods in general okay, Kwila decking very interesting. Local timbers we see Radiata clears as being good, but Rimu very poor.
An election, banking issues and shortage of skilled labour makes for interesting times.
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TIMSPEC (Timber Specialist Limited) PEFC & FSC Certified Products are available on request
64 Stoddard Road
Mt Roskill
ph: (09) 620 0260
fx: (09) 620 0261
30 Kent Street
Ph: (06) 376 9381
Fx: (06) 379 9382
9B Francella Street
ph: (03) 384 5287
fx: (03) 384 5289
Promoting sustainable
forest management

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