The Challenges Faced by Australia

The growing intensity of global competition is prompting a reevaluation of log standards in Australia. Historically, a significant portion of the pine logs exported to China were of a quality similar to the “pulp log” material — less valued by Australian sawmills but sufficient for the demands of the export market. This dynamic is set to change as domestic competition for small-diameter logs intensifies, driven by a tightening of log supply within Australia.

The growth of pine plantations has been modest at best, with an annual increase of merely 0.3% over the past three decades. This trend suggests that domestic timber supply is expected to see a gradual increase in the foreseeable future. Compounding this issue, the devastating fires of 2019 and 2020 led to severe damage to many large pine plantations, resulting in the loss of approximately 6% of the plantation area.