Australia: forest products market update

Australia, the world largest exporter of wood chips reduced shipments by 28 percent during the first half of 2009. The biggest decline was that of softwood and hardwood chips to Japan, which were down 31 percent and 36 percent, respectively, compared to the same period in 2008.
As a result of the reduced production of pulp in Japan the past year, demand for imported wood fiber has fallen and Countries that export, such as Australia, have had to try to find alternative markets. In 2009, Eucalyptus chips destined for Japan were down to 74 percent of all Australian hardwood chip exports as compared to 86 percent in the previous year.