Senate Rural and Regional Affairs and Transport Legislation Committee, , 2:24:12 to 2:28:19
Analysis of the significant increase in laminated veneer lumber (LVL) imports, primarily from China, and the corresponding drop in import prices.
Topics: Forestry, China trade, Manufacturing
Speakers: Speaker 14, Speaker 4, Speaker 24, Speaker 12
>> Thanks, chair. Uh I'm about to move to a different subject in case anyone had a followup for this, but I want to ask about the uh timber imports. Recently, recent reporting by the ABC sites a 63% increase in imports of laminated veneer or LVL as it's known uh in 2025 and a 56% drop in import prices. Can the department confirm these figures and provide the most recent official data on LVL imports by volume and price?
>> We just get colleagues to the table. Senator, >> thanks.
>> Morning, Senator Jared Grimville, executive director of Abears. Um, I don't we have a unit price right to hand. Um, but I can provide some information on LVL imports. um into Australia. Um so we've got an import value for 25 2425 around $931 million. It's pretty stable compared to the previous year. It's a little bit lower than what is it 2223. Um about the same as 2122, but there was a big step up between 202021 and 2122. So that's when that increase in inputs happened which my colleague can correct me but it's roughly around the time when we saw some significant increase in housing activity um with with various government programs um and kind of stepped in to fill I guess some of that
demand. >> So can you in terms of the claimed increase of 63% are you able to tell us
whether that's accurate? >> Um over a longer period it looks to be roughly the same in value terms. Um but from but that's taking you >> what about in terms of actual volume >> terms of volume let me see might have to take the volume my colleague's got some some numbers on volume you can bring but >> I suspect that there's been quite a bit of a price impact so volume is mostly a little bit moderated
a so you're just after LVL in particular. Yeah. So >> the volume of LVL imports, so this is 2425 compared to 23 24's 167,000 cubic meters and that's up from 120,000 cubic meters the year before.
>> It's quite an increase. Um, so which countries account for the largest share of imported LVL and other engineered wood products in Australia? I I think
it's China, but I I would have to go and do some more digging uh into the next level of detail to get you that, but we can have a look at
>> Thank you. Yeah. So, if you could come
back to me with the Yeah, it is China. So, we've got China is the biggest and >> have you got a list there? >> We do have a a list. It's unhelpfully sorted the wrong way around. Um so, China is the largest followed by Malaysia, Indonesia, New Zealand. Um and then we're getting to smaller numbers. Belgium, Italy, Chile, Netherlands, Finland. And this is for the latest
function. >> Just just those top three. What what have you got as a percentage? >> Um China is a bit over half um
>> of all import >> of of this is value. Um so Malaysia and Indonesia represent about >> I'd say 10%. >> Sorry, I just missed that last. around 10% I think each. >> Yeah, I'm doing math on the run. So,
>> that's right. Well, if you could come back to us just with the that list um with with the accurate figures that would be that'll be helpful. Um has the department undertaken or commissioned any economic modeling on the impact of cheaper imported engineered timber products on domestic timber processing capacity and employment.