Another Pine Price Rise

[alhoon]

Just got notice from two of my timber suppliers Pine is going up 6%-10% in early Jan so if you need some timber might pay to get it early.No change for hardwoods yet.

This will add (at a quess) $3000-$4000 onto the average new build.

Allan

[Viking]

Two effects. More steel houses and more expensive houses.
But houses are going to get cheaper. well according to some of the experts. Ha

[Davo36]

For f*ck's sake, how come they can increase prices when bugger all people are building?

Surely they're not selling as much timber as they used to?

David

[Keithw]

Surely they're not selling as much timber as they used to?
David

That's probably why the prices are going up, less turnover but static or increasing overheads = higher margin needed.

[SecretAgent]

Here's the price chart of the lumber futures going back to 1998.

http://charts.quote.com/cis/qc?cont=lb+%23f&period=m&size=1250x650&bartype=candle&bardensity=LOW&showvaluemarkers=true&showextendednames=true&showdatainheader=false

Douglas Fir (Oregon) I believe.

Anyone done numbers on importing this to keep the locals honest?

[alhoon]

When diary price were high a lot of forests were converted I hear Graham Hart had cut down something like 10k hectares for farms and had other 10k in the pipe line.

Also a lot of people thought supply to China would drop off with the slowed but they are doing a lot of infrastructure work which has kept supply up.

Sorry Dave but I get letters like this all the time, if it’s not timber it’s concrete if it’s not concrete it’s something else and I don’t think I’ve ever got one say prices are coming down.

Allan

[Matt Gilligan]

The carbon taxes must hike prices of piine in years to come, surely ?

[Wayne]

The carbon taxes must hike prices of piine in years to come, surely ?

now that is an interesting one. Timber houses are carbon sinks so should get credits not tax.

[Wayne]

For f*ck's sake, how come they can increase prices when bugger all people are building?

Surely they're not selling as much timber as they used to?

David

Lack of competition?

[kyotolaw]

Trees are carbon sinks until they get cut down. Then, the current rules say that they release all their accumulated carbon into the atmosphere. This would be true if it was all going to be burned, but wood in houses obviously remains a sink.

Won't stop them charging for the carbon credits though....

[Jumpin]

Trees are carbon sinks until they get cut down. Then, the current rules say that they release all their accumulated carbon into the atmosphere. This would be true if it was all going to be burned, but wood in houses obviously remains a sink.

Won't stop them charging for the carbon credits though....

Well not quite true - they are a temporary store, and gradually release the CO2 over the years - albeit quite slowly. So long as you pump the wood full of CCA to slow down the decomposition.

Prices are up I presume because of the increased exports at the moment. Don't know who's buying - maybe China?

[NESW]

As an owner of 20 yo pines I can assure you the grower isn't the one to be making the money, we have priced getting contractors in to remove/sell our logs and all we are left with is a messy block and enough payment (IF they pay, we have had warnings about this as well in the forestry industry) to cover the costs to remove the trees.

As a relatively small grower we are opting out of the CC process with MAF because ultimately when you deforest (including natural selection by weather conditions) you then need to reforest in similar vein to what you took out (we don't like how our place was planted) as well as re-pay any CC's you cashed in earlier. Like everything else, we expect CC's to be worth a fortune down the track, but so far our CC ownership has been assumed by the Crown, we would need to ''apply'' to get our quota and then not receive allocation until 2012 (I believe).

If the property was bare, we could stock more sheep or belching cows and receive more annual income than what the forestry will give us if we cashed in the CC's.

B..... to that.

having valued the worth of a tree its worth more to us to cut it down ourselves and sell it as firewood and mulch the branches for garden mulch. Very handy when One has a few rentals in need of sprucing up.

As far as the cost of timber goes in NZ, yes its blinking disgusting and as we specified ''dog bones'' for beams across our soon to be extra large garage with upstairs ensuite and rumpus room/bedroom, we are going to get back onto our supplier in NSW and get an export price from Aussie. We used the same type of structural timber there for our house and the same timber was worth approx. $A2000 compared to the sole NZ supplier at $NZ7000 via Bunnings.

time for a bit of export competition me thinks.

[cube]

"dog bones" ???

[NESW]

Its structurally engineered timber, if you look at it end on, you will see timber at top and bottom, and what looks like plywood inbetween roughly 200mm in height.

It spans quite good lengths and is light to handle.

but yes there is a professional name for it.... I will go through the paperwork and post a link.

[NESW]

Hyspan

http://www.chhfuturebuild.co.nz/index.cfm/PageID/28/ViewPage/Product+Brochures