Private Forests Tasmania has provided an overview of the current situation for private forestry in Tasmania as at 15 April 2020. Source: Timberbiz
North West Tasmania: Forestry supply chains are still flowing but some individual forest workers have been impacted by quarantine restrictions.
Whole log exports:
- Whole log exports continue to destinations including China and Malaysia.
- Both volumes and prices are recovering from recent lows with increased demand and improved prices.
- Stocks on Chinese ports have begun to reduce as China returns to work.
- With the closure of other key suppliers, such as New Zealand, it is expected that Australian demand should improve.
Woodchip Exports:
- Woodchip exports continue, albeit at reduced prices, as the Chinese pulp and paper manufacturing sector recovers.
- Companies with forward contracts report strong demand at satisfactory price levels.
- Companies without forward contracts suggest the market is patchy but the outlook appears positive albeit with lower price levels than early 2019.
Processing Facility Closures:
- Neville Smith Forest Products closed their Southwood mill on 23 March. It is understood that the closure will be reviewed at the end of April.
- Contractors working in the private plantation sector are still operating without significant disruptions to operations being reported.
- Sustainable Timber Tasmania has advised its southern native forest contractors are operating but are keeping delivery quotas under review.
