Australia: Export of wood chips dips

Wednesday 9 Oct 2019

 
US-China trade war hits Australian woodchip industry as shipments cancelled - Australia's $1.4-billion plantation woodchip industry has been dragged into the US-China trade war, with a number of shipments to the Asian economic powerhouse cancelled in the fallout from the dispute.

Amid fading hopes of a speedy breakthrough in the trade war, timber exporters have been hit by falling demand for woodchips from Chinese paper mills, which have become the industry's biggest customers.

Since July, at least three ships that were supposed to take Australian woodchips to China have been cancelled or deferred, and there are fears further consignments could be affected.

While shipments from Albany on Western Australia's south coast have been hit hardest, it's believed other woodchip export hubs in South Australia and Victoria have also been disrupted.

The setbacks have put the brakes on an industry that had been enjoying sustained growth since a wave of turmoil brought on by the failure of the managed investment scheme scene a decade ago.

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Source: ABC


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