| Sawmilling South Africa News |
Firstly I must apologise for the tardiness of our October newsletter. Along with the year-end load, I embarked on a visit to Vietnam for a presidential “Outward Sales Mission” to led by none other than President Ramaphosa himself.
We were most fortunate to be part of this high-level South African delegation, overseen by the dtic, that did indeed open doors to engage with potential customers in Vietnam.
Below is an extract from our report to the dtic and the SSA Exco upon our return. |
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Vietnam is a low to middle income country with a population ±100 million. Its economy is growing at 7% and as such offers potential for expanding trade growth. South African potential for trade in lumber products is small in international terms and therefore smaller niche markets are in my opinion better suited to SA sawmillers looking to export their products.
There is a limited to nonexistent market for structural timber in Vietnam, but the furniture sector uses a some 8 to 9 million m3 of timber per annum, of which 1.5 to 2 million m3 is imported.
The bulk of imports is hardwood timber, but softwood does feature. However, the exact volumes and presses are still to being established. The demand also varies from crating, used in packaging (pallets etc.) and carcass material to clears used in high quality furniture applications.
Further investigation will establish more accurate volumes and ruling prices.
Traditional SA sawmills will find it less attractive due to the lack of demand for structural timber. If niche markets can be found for softwood lumber, they could find compelling opportunities. However, most volumes will be in metric dimensions and require French or European grading rules.
If any sawmills in South Africa are interested in learning more about the Vietnamese market, please contact us at the SSA office.
Other than Vietnam potential, reports from almost all mills are that local demand has picked up significantly and mills have some full order books on which to deliver.
This is an encouraging turnaround from this time last year and we certainly hope it proves to be sustainable.
November 11 saw the final meeting of the SSA Exco for 2025 and interesting to note from discussions is that the season for takeovers, mergers and buyouts has started.
We are encouraged by this development, as it suggests that investors and boards of directors recognise the potential for future value in the sawmilling sector. We can only hope that this is the beginning of a resurgence of the past or if this is merely a matter of optimistic speculation.
All the best to our members who are pushing hard as we head to the end of the year. So don’t stop cutting straight and drying flat, and keep those order books brimming!
Cheers,
Roy Southey
Executive Director: Sawmilling South Africa |
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