iABARESAustralian forest and wood products statistics

Research by the Australian Bureau of Agricultural and Resource Economics and Sciences

NOVEMBER 2014

Australian forest and wood products statisticsMarch and June quarters 2014

ii ABARESAustralian forest and wood products statistics

© Commonwealth of Australia 2014

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Cataloguing data This publication (and any material sourced from it) should be attributed as ABARES 2014, Australian forest and wood products statistics, March and June quarters 2014, Australian Bureau of Agricultural and Resource Economics and Sciences, Canberra, November. CC BY 3.0.

ISSN 1449-1850 ISBN 978-1-74323-194-4 ABARES project: 115062/43214

Internet Australian forest and wood products statistics, March and June quarters 2014 is available at: agriculture.gov.au/abares/publications.

Contact Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES)

Postal address GPO Box 1563 Canberra ACT 2601 Switchboard +61 2 6272 3933 Facsimile +61 2 6272 2001 Email info.abares@agriculture.gov.au Web agriculture.gov.au/abares

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The Australian Government acting through the Department of Agriculture, represented by the Australian Bureau of Agricultural and Resource Economics and Sciences, has exercised due care and skill in preparing and compiling the information and data in this publication. Notwithstanding, the Department of Agriculture, ABARES, its employees and advisers disclaim all liability, including for negligence and for any loss, damage, injury, expense or cost incurred by any person as a result of accessing, using or relying upon information or data in this publication to the maximum extent permitted by law.

Acknowledgments This report was prepared by the ABARES Forest Economics section. ABARES acknowledges co-funding for production of this report by Forest & Wood Products Australia (FWPA) and the Department of Agriculture.

iiiABARESAustralian forest and wood products statistics

Contents

Overview 1

References 8

Australian forest and wood products statistics, detailed tables 9

Figures

1 Contribution of forestry sector to national gross domestic product, 2007–08 to 2012–13 2

2 Production and consumption of selected wood-based panel products, 2008–09 to 2013–14 2

3 Value of sawnwood imports, 2008–09 to 2013–14 3

4 Value of paper and paperboard imports, 2008–09 to 2013–14 4

5 Value of imports of miscellaneous forest products, 2008–09 to 2013–14 5

6 Value of wood product exports, quarterly, 2008–09 to 2013–14 6

7 Value of woodchip exports, 2008–09 to 2013–14 7

iv ABARESAustralian forest and wood products statistics

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1ABARESAustralian forest and wood products statistics

Overview

This issue of the Australian forest and wood products statistics (AFWPS) includes 2012–13 data for key domestic economic indicators, including sales and service income and industry value added, and 2013–14 data for employment and dwelling commencements. This issue also provides 2013–14 data for production and consumption of wood-based panel products and Australian Bureau of Statistics (ABS) trade data for the March and June quarters 2014.

Changes in key economic indicatorsIn 2012–13 the annual sales and service income of forestry and forest products manufacturing industries was $20.1 billion—a decrease of 5.9 per cent from 2011–12 (based on ABS Industry Survey data). In 2012–13 the forestry and forest products manufacturing industries accounted for 5.1 per cent of sales and service income of the total manufacturing industry, compared with 5.3 per cent in 2011–12.

Between 2007–08 and 2010–11 the forestry sector’s contribution to national gross domestic product was relatively stable, averaging $8.1 billion. However, this contribution declined to $7.0 billion in 2012–13 (Figure 1). The largest decline was in the ‘other wood product manufacturing’ industry, primarily prefabricated buildings, wooden structural fittings and reconstituted wood products.

Total employment in the forestry sector (forestry, wood, pulp and paper manufacturing) declined from 76 500 in 2008–09 to 61 400 in 2012–13 but rebounded to 70 500 in 2013–14 (based on the ABS Labour Force Survey).

The number of dwelling commencements is an important indicator of wood product consumption because sawnwood and wood-based panels are commonly used in residential building construction. Dwelling commencements in 2013–14 increased by 11.4 per cent to 180 400—well above the 10-year average (158 100). Most of the growth in dwelling commencements was in New South Wales, Queensland and Western Australia. Victoria recorded the largest number of annual dwelling commencements in Australia over the past five years.

Overview

2 ABARESAustralian forest and wood products statistics

FIGURE 1 Contribution of forestry sector to national gross domestic product, 2007–08 to 2012–13

$m

Paper and paper productsOther wood product manufacturing

Log sawmilling and timber dressing

Forestry and logging

Contribution of forestry sector to national GDP(right axis)

2000

4000

6000

8000

10 000

2012–13

2011–12

2010–11

2009–10

2008–09

2007–08

0.2

%

0.4

0.6

0.8

1.0

Total forestry sectorvalue added

Wood-based panel production and consumptionThis issue of the AFWPS provides updated production and consumption data for plywood, particleboard, and medium-density fibreboard. Data for laminated veneer lumber, hardboard, and veneer panel products are not included as these are not publicly available.

Total production of selected wood-based panels increased from 1.43 million cubic metres in 2012–13 to 1.48 million cubic metres in 2013–14. Despite stronger domestic housing activity, consumption of selected wood-based panels decreased by 3 per cent, from 1.76 million cubic metres in 2012–13 to 1.71 million cubic metres in 2013–14 (Figure 2). In the past two years production and consumption of wood-based panels have been well below the 10-year averages of 1.68 and 1.84 million cubic metres, respectively.

FIGURE 2 Production and consumption of selected wood-based panel products, 2008–09 to 2013–14

Net imports

Production

500

’000 m3

1000

1500

2000

2500

Consumption

2013–14

2012–13

2011–12

2010–11

2009–10

2008–09

Note: Includes plywood, particleboard and medium-density �breboard panel products.

Overview

3ABARESAustralian forest and wood products statistics

Imports of wood productsFollowing a 2.0 per cent decline in 2012–13, the value of wood product imports increased by 11.7 per cent to $4.6 billion in 2013–14. This increase was primarily driven by growth in the value of miscellaneous forest product imports. The value of imports of sawnwood, wood-based panels, and pulp and paper also increased.

Sawnwood importsThe volume of sawnwood imports to Australia increased by 3.6 per cent, from 759 011 cubic metres in 2012–13 to 786 306 cubic metres in 2013–14. Most of this growth was driven by increased sawnwood imports from New Zealand and the Czech Republic (Figure 3). The value of sawnwood imports increased by 10.8 per cent, from $422.7 million in 2012–13 to $468.5 million in 2013–14. The value of dressed softwood sawnwood imports increased by 14.3 per cent and accounts for most of the increase in value of total sawnwood imports (Figure 3). Softwood dressed imports are primarily used for structural purposes in housing construction.

Wood-based panel importsOver the past five years the value of total wood-based panel imports (including plywood, particleboard, veneer, hardboard, softboard, and other fibreboards) increased by 36.6 per cent, from $271.2 million in 2008–09 to $370.3 million in 2013–14.

The value of plywood imports has increased by 44 per cent, from $145.4 million in 2008–09 to $209.9 million in 2013–14. On average, plywood accounts for more than half the value of Australia’s total wood-based panel imports. China, New Zealand and Malaysia are Australia’s primary sources of plywood imports.

The value of hardboard panel imports also increased, by $45.9 million over the past five years to $71.6 million in 2013–14. In Australia, hardboard imports are primarily sourced from China, the world’s largest producer of hardboard. Hardboard production in China has grown strongly since 2008 (ForestSTAT 2014).

FIGURE 3 Value of sawnwood imports, 2008–09 to 2013–14

$m

New ZealandAll other countries

CanadaCzech Republic

Softwood dressed Softwood roughsawn

Hardwood dressed Hardwood roughsawn

Chile

50

100

150

200

2013–14

2012–13

2011–12

2010–11

2009–10

2008–09

$m2013–14

2012–13

2011–12

2010–11

2009–10

2008–09

50

100

150

200

250

300

Overview

4 ABARESAustralian forest and wood products statistics

Paper and paperboard importsThe value of total paper and paperboard imports increased in 2013–14. This was driven by increases in the value of packaging and industrial paper and printing and writing paper, which more than offset decreases in the value of newsprint and household and sanitary paper imports (Figure 4).

Imports of packaging and industrial paper have increased consistently each year over the past decade. The value of packaging and industrial paper imports increased by 10.8 per cent, from $590.1 million in 2012–13 to $653.8 million in 2013–14 (Figure 4). Most of Australia’s packaging and industrial paper imports come from China. The packaging industry in China has developed rapidly in recent years (Research and Markets 2013) and China is a major exporter of packaging materials.

The value of printing and writing paper imports declined between 2008–09 and 2012–13 but increased by 3.7 per cent in 2013–14 (Figure 4). Imports from China and Finland accounted for most of this increase.

FIGURE 4 Value of paper and paperboard imports, 2008–09 to 2013–14

$m

All other countriesChina

New ZealandFinland

Printing and writingPackaging and industrial

Newsprint Household and sanitary

United States

2013–14

2012–13

2011–12

2010–11

2009–10

2008–09

$m2013–14

2012–13

2011–12

2010–11

2009–10

2008–09

300

600

900

1200

1500

300

600

900

1200

1500

Overview

5ABARESAustralian forest and wood products statistics

Miscellaneous forest products importsThe value of miscellaneous forest products imports increased by 23.5 per cent, from $734.1 million in 2012–13 to $906.6 million in 2013–14. Indonesia and China accounted for most of the increase in these imports (Figure 5). The ‘miscellaneous forest products’ category includes a range of wooden products, including packing cases, frames, oils and resins. Builders’ carpentry, mouldings and articles of wood are the highest value products within this category (Figure 5).

Exports of wood productsFollowing an 8.4 per cent decline in 2012–13, the value of wood product exports increased by 23.7 per cent to $2.5 billion in 2013–14. A decline in the exchange rate in 2013–14 (Figure 6), combined with a variety of other factors (such as log availability, shipping costs, global demand and domestic prices), has influenced the observed trend in wood product exports.

The growth in value of total wood product exports in 2013–14 was driven by an increase in the value of woodchip exports. The value of other wood product exports such as roundwood, sawnwood, wood-based panels and paper also increased (Figure 6).

Roundwood exportsExports of Australian roundwood have grown strongly in the past five years. In 2013–14 volume of roundwood exports reached a new high of 2.4 million cubic metres, valued at $292 million. The previous peak was in 2011–12 at 1.8 million cubic metres valued at $175 million. China continues to be the primary destination for roundwood exports, accounting for 88.6 per cent of the volume and 85.9 per cent of the value of total Australian roundwood exports. Insufficient forest resources, harvesting restrictions, and strong economic growth have widened the gap between China’s roundwood supply and demand (Sun 2014).

FIGURE 5 Value of imports of miscellaneous forest products, 2008–09 to 2013–14

$m

All other countriesChina

IndonesiaNew Zealand

OtherMouldings

Builders’ carpentryArticles of wood

United States

2013–14

2012–13

2011–12

2010–11

2009–10

2008–09

$m2013–14

2012–13

2011–12

2010–11

2009–10

2008–09

50

100

150

200

250

300

50

100

150

200

250

300

350

400

Overview

6 ABARESAustralian forest and wood products statistics

Sawnwood exportsThe value of sawnwood exports increased by 20.0 per cent, from $89.9 million in 2012–13 to $107.9 million in 2013–14. This growth was driven primarily by an increase in the value of softwood roughsawn exports destined for China and Taiwan.

Wood-based panels exportsThe value of Australian wood-based panels exports (including plywood, particleboard, veneer, hardboard, softboard, and other fibreboards) increased by 21.2 per cent, from $50.8 million in 2012–13 to $61.5 million in 2013–14. Medium-density fibreboard exports more than doubled in volume and accounted for most of the growth in the value of total wood-based panel exports.

Paper and paperboard exportsThe total value of Australia’s paper and paperboard exports increased from $711.5 million in 2012–13 to $852.5 million in 2013–14. These remained Australia’s highest value wood product export, accounting for 33.8 per cent of total wood product export value in 2013–14. Exports of all grades of paper increased in both volume and value from the previous financial year.

The value of packaging and industrial paper exports increased by 15.2 per cent, from $525.6 million in 2012–13 to $605.5 million in 2013–14. On average, exports of packaging paper account for more than 70 per cent of the value and more than 80 per cent of the volume of total Australian paper exports. This grade of paper is exported primarily to New Zealand, China and the United States.

FIGURE 6 Value of wood product exports, quarterly, 2008–09 to 2013–14

$m

Other

Wood-based panelsSawnwoodRoundwood

Woodchips

Paper and paperboard

US$/A$

Exchange rate(right axis)

2013–142012–132011–122010–112009–102008–09

Sep

Dec

Mar Jun

Sep

Dec

Mar Jun

Sep

Dec

Mar Jun

Sep

Dec

Mar Jun

Sep

Dec

Mar Jun

Sep

Dec

Mar Jun

0.2

0.4

0.6

0.8

1.0

1.2

1.4

100

200

300

400

500

600

700

Overview

7ABARESAustralian forest and wood products statistics

Woodchip exportsThe value of woodchip exports increased by 25.7 per cent, from $611.0 million in 2012–13 to $767.7 million in 2013–14. The value of hardwood woodchip exports increased by 32.9 per cent in 2013–14, more than offsetting a 13.7 per cent decrease in value of softwood woodchips. The value of softwood woodchip exports have been declining since 2008–09 (Figure 7).

The unit value of hardwood woodchips fell to $163 a bone-dry tonne (bdt) in 2013–14 and remains below the 10-year average of $172/bdt.

FIGURE 7 Value of woodchip exports, 2008–09 to 2013–14

Softwood woodchips

Hardwood woodchips

$m $/bdt

Softwood unit value(right axis)Hardwood unit value(right axis)

2013–14

2012–13

2011–12

2010–11

2009–10

2008–09

40

80

120

160

200

200

400

600

800

1000

8 ABARESAustralian forest and wood products statistics

References

ForesSTAT 2014, ‘FAO Statistics’, Food and Agriculture Organization of the United Nations, available at faostat.fao.org/site/630/Forestry.aspx, updated 31 July 2014.

IndustryEdge 2014, ‘Australian pulp imports up, but no excitement necessary’, Pulp and paper edge, edition 111, IndustryEdge, August.

Research and Markets 2013, China packaging industry report, 2013–2016, Research and Markets, May, available at researchandmarkets.com/reports/2567032/china_packaging_industry_report_20132016.

Sun C, 2014, ‘Recent growth in China’s roundwood import and its global implications’, Forest Policy and Economics, vol. 39, pp 43–53, Department of Forestry, Mississippi State University, February, available at ac.els-cdn.com/S1389934113002438/1-s2.0-S1389934113002438-main.pdf?_tid=88a2d872-55b2-11e4-8b7c-00000aacb361&acdnat=1413518781_dd8bc16996e5e23f23d4da6b2deec9e2 (pdf 896 kb).

AFWPS summary tables

(Click to download Excel data)1 Overview of the Australian forestry sector

Resource base2 Land areas, by forest vegetation cover

3 Native forest areas, by forest type, ownership and state

4 Plantation areas, by type and state

5 Plantation establishment, by type and state

Logs6 Logs harvested, by log type

7 Gross value of logs harvested

8a Volume of logs harvested, by state and forest type

8b Value of logs harvested, by state

8c Log volume, by state and type

9 Log price indexes, by log type

10 Estimated logs consumed

Wood products11 Production annual

12 Sawnwood production, by state

13 Sales and service income in forest product industries

14 Industry value added in forest product industries

15 Wages and salaries in forest product industries

16a Employment in forest product industries (Labour Force survey)

16b Employment in forest product industries (Australian Industry survey)

9ABARESAustralian forest and wood products statistics

Appendix A

Australian forest and wood products statistics, detailed tables

17 Capital expenditure in forest product industries

18 Disposal of assets in forest product industries

19 Selected price indexes

20 Apparent consumption

21 Dwelling units commenced

22 Recovered paper

23 Imports

24 Exports

25 Imports from selected countries

26 Exports to selected countries

27 Selected trade unit values

28 Imports of secondary wood products

29 Exports of secondary wood products

AFWPS imports quarterly

(Click to download Excel data)30 Imports of wood products

31 Imports selected unit values

32 Imports from selected countries

33 Imports of sawnwood, summary

34 Imports of roughsawn softwood sawnwood

35 Imports of roughsawn hardwood sawnwood

36 Total imports of roughsawn sawnwood

37 Imports of dressed softwood sawnwood

38 Imports of dressed hardwood sawnwood

39 Total imports of dressed sawnwood

40 Imports of miscellaneous forest products

41 Imports of veneers

42 Imports of plywood, by type

43 Imports of plywood continued

44 Imports of board products, by type

45 Imports of paper and paperboard, by type

46 Total imports of paper and paperboard

47 Imports of paper manufactures

48 Imports of recovered paper

49 Imports of pulp

50 Imports of secondary wood products

Australian forest and wood products statistics, detailed tables

10 ABARESAustralian forest and wood products statistics

AFWPS exports quarterly

(Click to download Excel data)51 Exports of wood products

52 Exports selected unit values

53 Exports of sawnwood, summary

54 Exports of softwood sawnwood

55 Exports of hardwood sawnwood

56 Exports of roundwood

57 Exports of railway sleepers

58 Exports of miscellaneous forest products

59 Exports of veneers

60 Exports of plywood

61 Exports of board products

62 Exports of paper and paperboard

63 Exports of paper manufactures

64 Exports of recovered paper

65 Exports of pulp

66 Exports of woodchips

67 Exports of secondary wood products

Australian forest and wood products statistics, detailed tables

11ABARESAustralian forest and wood products statistics

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