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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
Sept 2015

Supply chains

The supply chain for our Radiata Pine is struggling with global issues. The trade in export logs is in the doldrums currently with low prices meaning many forests are slowing down the log harvest. The prices for pruned logs is good, not great but most all other log grades are poor and in most cases negative. The impact for us is higher costs for Clear Radiata Pine.

Waverley Sawmills new Boiler in background , foreground low log stocks a problem

Installing the heat and pre drying gear for the Waverley Sawmills timber drying kilns

The same is true for a number of other timbers we handle, notably Western Red Cedar, and Iroko. Western Red Cedar demand has seen prices double in the 2005, in NZ dollar terms. We are struggling to get all we want in some sizes. The issues revolve around the changing face of relative exchange rates that has seen the exports to the USA are now giving Canadian exporters a 30% gain, whereas the NZ exports are fairly constant. We have a large investment in Western Red Cedar and have strong suppliers but the issue is that there is not enough to go around.

4 x 6 CAD Cost Price Analysis Per FBM

Log stocks are low and demand for high grade Cedar high..

High Grade Western Red Cedar logs at one of our suppliers sawmills on Vancouver Island.

Iroko supply is similar in that it is struggling to keep up with the demand from around the World. This imbalance between supply and demand is causing prices to rise.

400x100 Cedar for Salute Construction to use in new Westgate Shopping Centre at the mill .

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Previous ArticlePrevious Article
Current Feature Stories
September 2015
/imagesdb/Issue/f324da3f-5237-4fff-9368-59fd36a53857.jpgStaff Updates
A few changes and additions all in Auckland.
/imagesdb/Issue/c7e6abb8-eded-4671-a075-6c365ccfacf7.jpgBlack Butt decking a new non tropical choice
Black Butt decking provides a non tropical choice to build decks and still use a class 1 durable hardwood.
/imagesdb/Issue/d75b42f9-772a-43f1-a11b-6719e30b728c.jpgSupply chains
Supply chains are groaning at demand for key items. The growth in demand after the GFC has been slow and has seen a large number of sawmills here in NZ and elsewhere close and go broke. This is leading to shortages in supply as the remaining suppliers struggle to cope.
/imagesdb/Issue/b5dc470d-607c-417f-8cf4-bd6d27a1af74.jpgBuilding Activity
Data we see coming through suggest continuing demand for building materials and weather boards as an example are flying out the door. So prospects for Building Supply merchants should be okay.
Current Feature Stories
June 2015
/imagesdb/Issue/58a303f2-75b4-4cc6-b80c-95e5f7f2a6c0.jpgAustralian Hardwoods same same but different
In our quest to find hardwood's that are non tropical and suitable for use outside in NZ we are re focusing our attention on some of the Australian hardwoods. in particular we are looking at Black Butt.
/imagesdb/Issue/42027bbc-6b60-4efc-920b-a9466c61a538.jpgStaff news
A few changes in staff. The good news is a full crew in Christchurch and we have found great new staff to replace those leaving.
/imagesdb/Issue/36fabf7e-2add-44b1-9bfb-003a902fb70c.jpgSupply side developments
Lots happening with our supply chains and costs relating to each have their own story.
/imagesdb/Issue/3d9a890e-ee6a-42a5-aa3e-5eb3b321d317.jpgIntroduction
2015 has so far seen record sales levels but increasing pressure on margins as we see desperate sellers. Contradictory on so many levels but a fact. We ended the financial year 31st March with 2 record months in a row.
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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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