Released on: May 28, 2008, 12:47 am

Press Release Author: Hakan Ekstrom

Industry: Agriculture

Press Release Summary: Global trade of wood chips has more than doubled in 20 years,
reaching 31 million tons in 2007. Just since 2003, total trade has increased by
almost 30%.


Press Release Body: Seattle, USA, May 28, 2008 -- Pulpmills in both Europe and the
Pacific Rim are increasingly sourcing their mills with wood from fast-growing
plantations. This has resulted in a major expansion of worldwide trade of both wood
chips and pulplogs the past few years, according to the Wood Resource Quarterly.

Global trade of wood chips has more than doubled in 20 years, reaching 31 million
tons in 2007. Just since 2003, total trade has increased by almost 30%. This
development is the result of a tighter wood supply in close proximity to many
pulpmills in the Northern Hemisphere, higher costs for locally sourced wood fiber
and relatively lower-cost alternatives in new supply regions.

The biggest increases in imports have been to Finland, Austria, Germany, Turkey,
Canada and China. Trade of wood chips is still the highest in the Pacific Rim, where
imports to Japan, Taiwan, South Korea and China account for about 55% of the total
global trade and over 95% of water-born trade.

The major supplying regions to Asia in 2007 were Australia, South Africa, Chile and
Vietnam, which together exported just over 12 million tons, the majority of which
was Eucalyptus wood chip destined for Japanese pulpmills. Vietnam has increased
shipments dramatically and is now the fourth largest supplier of wood chips to
Japan, exporting 1.73 million tons in 2007, up from only 390,000 tons six years ago.

Uruguay has also expanded shipments of both Eucalyptus wood chip and pulpwood the
past few years. In 2007, total wood chip exports were almost one million tons
compared to virtually no chip exports at all five years ago. Practically all wood
chips have been sent to pulpmills in Japan, Spain, Sweden and Finland. In addition
to wood chips, Uruguay has also expanded exports of pulplogs from its plantations.
In 2007, these shipments reached 1.7 million m3, of which a majority has been
destined for the Nordic countries and Southwest Europe (Portugal, France and Spain).


Over the long-term, it can be expected that trade of wood chips will decline as more
pulp capacity will be added in regions with fast-growing plantations and pulpwood
will be consumed locally.

Global pulpwood and sawlog market updates are included in the 50-page publication
Wood Resource Quarterly. The report, established in 1988 and with readers in over 20
countries, tracks wood prices in most regions around the world and also includes
regular updates of international pulp, lumber and biomass markets.
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Contact:
Hakan Ekstrom
Wood Resources International
Seattle, USA
+44 222 656
info@wri-ltd.com
http://www.woodprices.com

Web Site: http://www.woodprices.com

Contact Details: Wood Resources International
Seattle, USA
+44 222 656
info@wri-ltd.com
http://www.woodprices.com