China is now the biggest importer of unprocessed saw logs in the world and the second biggest importer of processed lumber (after the US).
Russia and Scandinavia have seen the largest percentage increases in terms of their export levels to China. European timber growers are expected to further increase the amount of their product going to China, diverting supplies from other major export markets, such as the UK.
This trend of rising global demand is expected to continue, and there is nowhere for the UK to go to source cheap timber. Timber prices should continue to rise which is positive news for domestic plantation owners.
Forestry is part of the Gresham House Plc (LON:GHE) real assets division and the team has over 180 years of combined experience in forestry investing and asset management.