The demand for timber is increasing all over the world, and especially in emerging markets such as China and India. We believe that timber prices will also be driven up as a result of the fact that the world’s timber firms simply can’t keep up with demand.
China’s speedy development into an emerging super power has meant a major boost to the timber industry in the US, Europe and South America. The country expects the number of people living in its urban areas to double and is building 20 ‘mega cities’ and 50,000 high-rise buildings in order to try to house this growing urban population.
Timber is still an important building material in China, with many homes and even office building using timber frames and cladding. Further good news for timberland managers in the Americas is that China no longer imports as much timber from Russia as it imposed an expensive tax on exported timber, making it too pricey.
Those investing in timberland at the moment could see the value of the timber they own grow in value (as well as size of course!) this is why we believe it is a great time to opt for an ethical investment in plantations run sustainably, like those operated in Spain and Portugal by iPaulownia.