Timber prices are increasing in the US because the demand for lumber continues to grow in Asia, according to FRA and research from the Claymore Beacon Global Timber Index.
Bainbridge Island, WA, August 22, 2012 - Timber prices are increasing in the US because the demand for lumber continues to grow in Asia, according to Forestry Research Associates (FRA) and research from the Claymore Beacon Global Timber Index.
The figures show that log exports from the US to Asia increased by 5.2 per cent in the first three months of 2012 and analysts believed that the boost to demand came as a result of the booming global housing market.
“Growing economies, like China and India, are all hard at work building new homes for people increasingly moving into urban areas to take the newly created jobs in these regions,” explained FRA’s analysis partner, Peter Collins. “Lumber is one of the main building materials used in these countries and they are shopping millions of tons of logs in form elsewhere to meet demand, which is great news for timber and forestry investors worldwide.”
An example of the house-building boom in China comes from the latest figures from Xinyuan Real Estate Company, which reported growth of 73.53 per cent for so far in 2012.
Now is a great time to invest in timberland, according to FRA and other forestry investment experts. The market for housing in the US is also looking to be improving, which will mean the domestic demand for timber logs will also increase over time.
“Timber is a great medium to long-term investment solution for those who want a low-risk portfolio,” stated Mr Collins.
Investing in forestry through sustainable plantation projects, such as those run by firms like Greenwood Management in Brazil and Canada, is a popular option. These plantations investment plans allow people to directly buy forestry land with as little as $10,000. The plantations are already in operation and the cyclical growing model means returns start to be seen by investors before their specific trees come to maturity.
Forestry Research Associates
620 Vineyard Lane
Bainbridge Island, WA 98110
(206) 316 8394