Timber supplies in demand once again
The US housing downturn has hit the European and US timber sector hard but as leading indicators stabilise the beginnings of a recovery are being priced in. European timber suppliers reported an 8.5% contraction in demand between 2007 and 2008, with North American suppliers believed to have faced similar difficulties.
Meeting last week, the UN Economic Commission for Europe forecast a big surge in Chinese-led demand for raw wood products next year but said it would take time to return to full capacity, creating further potential pricing pressure.
‘Even when market strength returns, the production capacity will not be immediately available since many plants have shut down, with disastrous effects on their labour force,’ it said.
ishares S&P Global Timber and Forestry
Platinum prices recover with a record high
Platinum has risen on the coat-tails of gold as it has reached a record high and industrial precious metals have been supported more broadly on the cyclical recovery.