In December 2024, the producer price index (PPI) value of structural timber was measured at 165.1 across six capital cities in Australia. The highest PPI recorded in the given time period was in September 2022. Producer price indexes are used to measure the price change of products, goods, and services during the production process.

Australia Forest Product Price Index: Timber, Board and Joinery data was reported at 167.400 1989-1990=100 in 2023. This records an increase from the previous number of 147.250 1989-1990=100 for 2022. Australia Forest Product Price Index: Timber, Board and Joinery data is updated yearly, averaging 74.650 1989-1990=100 from Jun 1975 (Median) to 2023, with 49 observations. The data reached an all-time high of 167.400 1989-1990=100 in 2023 and a record low of 16.775 1989-1990=100 in 1975. Australia Forest Product Price Index: Timber, Board and Joinery data remains active status in CEIC and is reported by Australian Bureau of Agricultural and Resource Economics and Sciences. The data is categorized under Global Database’s Australia – Table AU.I062: Price Index: Forest Product: 1989-90=100.

In December 2024, the producer price index (PPI) value of timber board and joinery was measured at 167.9 across six capital cities in Australia. The highest PPI recorded within the given time period was in the June quarter of 2023. Producer price indexes are used to measure the price change of products, goods, and services during the production process.

Lumber fell to 666 USD/1000 board feet on July 23, 2025, down 0.97% from the previous day. Over the past month, Lumber's price has risen 9.43%, and is up 34.65% compared to the same time last year, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. Lumber - values, historical data, forecasts and news - updated on July of 2025.

This report analyses the domestic price of timber. This report uses the log price index which is sourced from the Australian Forest and Wood Products Statistics Report. This report is obtained from the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES). The log price index measures nominal prices paid per cubic metre at the sawmill. The data is presented as an index with a base year of 1999-00.

In December 2024, the producer price index (PPI) value of timber doors was measured at 190.1 index points across six capital cities in Australia. This marked the highest PPI within the given time period. Producer price indexes are used to measure the price change of products, goods, and services during the production process.

In December 2024, the producer price index (PPI) value of timber windows was measured at 210.4 index points across six capital cities in Australia. Producer price indexes are used to measure the price change of products, goods, and services during the production process.

Timber wholesalers have faced difficult trading conditions in recent years that have negatively impacted performance and growth. Weaker residential construction activity, driven by rising interest rates and shifting housing preferences towards high-density apartments, has suppressed timber demand and constrained revenue. Rising timber prices following global supply disruptions have also pushed consumers towards substitute materials like aluminium, steel and plastic composites, prompting wholesalers to implement strict cost controls to maintain profitability. Wholesale bypass has intensified, with larger downstream buyers sourcing timber directly from manufacturers to reduce procurement expenses. However, smaller specialised wholesalers and import specialists have better resisted this trend by enhancing their service offerings. Increasing environmental awareness is encouraging use of recycled timber, further weighing on timber wholesalers' performance. Domestic timber supply constraints and increased preferences for recycled timber have amplified import reliance, bolstering wholesalers with strong international sourcing capabilities and logistical expertise. Industrywide revenue is expected to have fallen at an annualised 1.6% over the five years through 2024-25 to total $5.9 billion after a 1.4% climb anticipated in 2024-25. Over the next five years, a forecast increase in demand for residential and non-residential building construction, driven by falling interest rates and public sector capital expenditure, will boost industry revenue. Demand is projected to strengthen with Australia's rising population and substantial government housing initiatives, like the $10.0 billion Housing Australia Future Fund and additional budget allocations aimed at boosting dwelling commencements. Falling interest rates will further support residential and commercial construction demand, benefiting wholesalers positioned to supply structural timber components. Persistent domestic timber supply shortages, amplified by regulatory protection of native forests, will encourage significant growth in timber imports, enhancing growth opportunities and profitability for wholesalers experienced in managing international supply chains. Meanwhile, stabilising timber prices and an appreciating Australian dollar will ease purchase cost pressures. However, ongoing wholesale bypass trends mean wholesalers must enhance efficiency, control operational costs and invest strategically to remain competitive and maximise profitability. Industrywide revenue is set to rise at an annualised 1.8% over the five years through 2029-30, reaching $6.5 billion.

Australia PPI: Output: Manufacturing: Wood: Log Sawmilling & Timber Dressing: Log Sawmilling data was reported at 232.700 1989-1990=100 in Jun 2012. This records a decrease from the previous number of 238.200 1989-1990=100 for Mar 2012. Australia PPI: Output: Manufacturing: Wood: Log Sawmilling & Timber Dressing: Log Sawmilling data is updated quarterly, averaging 103.350 1989-1990=100 from Mar 1970 (Median) to Jun 2012, with 170 observations. The data reached an all-time high of 238.200 1989-1990=100 in Mar 2012 and a record low of 16.200 1989-1990=100 in Jun 1970. Australia PPI: Output: Manufacturing: Wood: Log Sawmilling & Timber Dressing: Log Sawmilling data remains active status in CEIC and is reported by Australian Bureau of Statistics. The data is categorized under Global Database’s Australia – Table AU.I021: Producer Price Index: 1989-90=100: ANZSIC 2006: Output of the Manufacturing Industry.

Australia PPI: Input: House Construction: WA: Structural Timber data was reported at 161.900 2011-2012=100 in Mar 2025. This records a decrease from the previous number of 165.100 2011-2012=100 for Dec 2024. Australia PPI: Input: House Construction: WA: Structural Timber data is updated quarterly, averaging 91.600 2011-2012=100 from Sep 1985 (Median) to Mar 2025, with 159 observations. The data reached an all-time high of 190.700 2011-2012=100 in Sep 2022 and a record low of 47.300 2011-2012=100 in Sep 1985. Australia PPI: Input: House Construction: WA: Structural Timber data remains active status in CEIC and is reported by Australian Bureau of Statistics. The data is categorized under Global Database’s Australia – Table AU.I030: Producer Price Index: 2011-12=100: ANZSIC 2006: Input to the House Construction Industry.

Australia PPI: Output: Mfg: Wood: Log Sawmilling & Timber Dressing data was reported at 205.000 2011-2012=100 in Mar 2025. This records an increase from the previous number of 203.700 2011-2012=100 for Dec 2024. Australia PPI: Output: Mfg: Wood: Log Sawmilling & Timber Dressing data is updated quarterly, averaging 93.000 2011-2012=100 from Sep 1989 (Median) to Mar 2025, with 143 observations. The data reached an all-time high of 205.000 2011-2012=100 in Mar 2025 and a record low of 57.200 2011-2012=100 in Dec 1991. Australia PPI: Output: Mfg: Wood: Log Sawmilling & Timber Dressing data remains active status in CEIC and is reported by Australian Bureau of Statistics. The data is categorized under Global Database’s Australia – Table AU.I019: Producer Price Index: 2011-12=100: ANZSIC 2006: Output of the Manufacturing Industry.

Industry businesses have faced challenging conditions over the past few years. Demand from downstream wood product manufacturers and building construction industries has influenced the industry's performance. Along with greater substitute competition, reduced demand from carpentry services amid the COVID-19 pandemic has been detrimental to the industry. Demand has stayed afloat as the country recovers from the pandemic's economic and social disruptions. Overall, industry revenue has grown at an annualised 0.4% over the past five years and is expected to total $2.3 billion in 2023-24, when revenue drops by an anticipated 4.1%. Declining demand from carpentry services and house construction is contributing to this trend.The domestic price of timber has surged, increasing operating costs and pushing down profit margins. Some businesses have struggled to pass on cost increases to downstream markets. Greater competition from substitute products, like concrete and steel, has been the primary driver for this trend, while demand falls during the COVID-19 pandemic have left some businesses with excess inventory. Industry manufacturers have invested in new technology, including scanning systems and automated cutting machines, to minimise wood waste, maximise output and adapt to these challenging operating conditions.Industry operating conditions are set to improve going forwards as the COVID-19 pandemic's adverse effects dissipate. Plantation tree availability will continue dipping, while demand for substitute products from the construction sector will remain strong. Despite these factors, industry revenue is forecast to climb at an annualised 2.3% over the five years through 2028-29 to total $2.6 billion. Growth in wood product manufacturing and building construction activity is set to boost demand for resawn and dressed timber.

Overview
This technical report estimates the responsiveness of demand for structural pine to changes in timber and steel prices. Measures of demand responsiveness can provide valuable insights into the potential implications of changes in policy or market settings on volumes and prices received by producers. The analysis focuses on estimating short-term price elasticities of demand--a formal measure of the sensitivity of demand--to changes in prices in the same quarter or recent past.

Key Issues
The estimates in this report suggest that the importance of timber and steel prices on the quantity of structural timber demanded in the short-run is limited. However, the volume of residential construction activity was found to have a substantial effect for demand of domestically produced structural pine products. In particular, new house commencements explain a great deal of the quarter-on-quarter changes in the quantity of domestic structural pine sales. This confirms the common assertion by industry that house commencements are the primary driver for structural timber demand within Australia.

Looking forward, changes in consumer preferences, socio-demographic trends and building regulations will likely play a much greater role in the choice of building materials used in housing construction compared with timber and steel prices. Trends suggest consumers are placing more weight on the environmental benefits of structural materials. Changing architectural styles will change the material requirements for a standard home. A global trend towards higher-density living will likely promote a shift toward multi-unit buildings, with recent changes to the National Construction Code opening the way for increased timber use in the midrise construction market, leading to greater timber use in multi-level buildings.

Falling demand from downstream manufacturers and greater use of importers have threatened the Fabricated Wood Manufacturing industry’s viability. Shrinking plantation tree availability has kept timber prices high while ongoing import penetration is blocking manufacturers from passing costs on to their customers. Dwelling commencements and residential building construction activity have weakened and dampened demand for fabricated wood. Downstream builders have also been straddled with exorbitant costs, adding to woes in construction sector activity. With less confidence in this market, fabricated wood manufacturers have struggled to maintain their sales counts. Overall, industry revenue has declined at an annualised 0.1% over the past five years and is expected to total $1.7 billion in 2024-25, when revenue will slump by an estimated 1.4%. Fabricated wood manufacturers have faced rising competition from importers that can pass on cost savings from overseas manufacturers with lower overhead costs. In particular, Chinese offerings have battered local manufacturers’ aspirations, with their portion of imports rising to 49.0% this year. Structural timber product manufacturers have also struggled to fend off competition from substitute materials like plasterboard, timber, aluminium and concrete. As the economy recovers from the construction slowdown, improving conditions are projected to support industry revenue growth at an annualised 0.1% over the five years through 2029-30 to reach $1.8 billion. An upwards trend in most building markets, including multi-unit apartments, commercial buildings and industrial construction, will underpin domestic demand for fabricated timber products. State and Federal Government pledges to meet the growing population's needs while remaining budget conscious will lend themselves to greater usage of fabricated wood products, particularly plywood and particleboards. Demand from downstream wooden structural component and furniture manufacturers will also support industry sales, especially as budget-conscious consumers become more accustomed to inexpensive, particleboard furniture. Nonetheless, greater import penetration and declines in available plantation trees will lift input prices and limit profitability.

Agriculture, forestry, and fishing, value added (annual % growth) in Australia was reported at 7.216 % in 2024, according to the World Bank collection of development indicators, compiled from officially recognized sources. Australia - Agriculture, value added (annual % growth) - actual values, historical data, forecasts and projections were sourced from the World Bank on July of 2025.

The Carpentry and Joinery Timber Manufacturing industry’s performance has been heavily influenced by fluctuations in construction activity, particularly house construction, and shifts in the domestic price of timber over the past five years. From 2019-20 to 2021-22, low interest rates and government stimulus like the HomeBuilder scheme boosted housing construction and demand for timber products, elevating industry revenue. However, from 2021-22 onwards, rising interest rates and the end of stimulus programs led to decreased new dwelling commencements. This reduced demand and intensified price competition among manufacturers, tightening the industry’s profitability, although it has still expanded from 2019-20 levels. Despite falling demand, soaring timber prices as a result of global supply disruptions have allowed manufacturers to increase their selling prices, generating price-driven revenue growth. Industrywide revenue is expected to have climbed at an annualised 1.4% over the five years through 2024-25 to $4.6 billion, which includes an anticipated 1.4% slump in 2024-25. Competition from non-timber substitutes and increased imports from countries with lower labour costs have challenged domestic manufacturers. In response, companies have adopted automation and advanced technologies to improve efficiency, reduce labour costs and support profitability amid these market challenges. In the coming years, carpentry and joinery timber manufacturers are set to benefit from increased housing construction stimulated by government initiatives and population growth. Significant federal funding, including the Australian Government’s commitment to build 1.2 million new homes over the five years from 2024-25, will boost demand for timber products used in new housing projects, contributing to forecast revenue growth and widened industry profitability. Stabilising growth in timber prices and an appreciating Australian dollar will reduce purchase costs, supporting profitability. Rising import volumes, particularly from countries with lower production costs, will intensify competition, pressuring domestic manufacturers to enhance efficiency and differentiate their products. Evolving energy efficiency standards, like the requirement for new homes to achieve at least a seven-star rating under the Nationwide House Energy Rating Scheme (NatHERS), will drive innovation opportunities in high-value, energy-efficient timber products but may also pose challenges if manufacturers cannot meet these standards. Industrywide revenue is forecast to climb at an annualised 1.4% over the five years through 2029-30 to reach $4.9 billion.

Analysing the economic potential of forestry for carbon sequestration under alternative carbon price paths

Overview
The introduction of a carbon price under the proposed Carbon Pollution Reduction Scheme (CPRS) may be effective in promoting afforestation in Australia and contribute to Australia's emissions target through carbon sequestration. Rates of sequestration will depend on the stringency of the emissions reduction target, and hence the level of the carbon price. However, the rate of afforestation arising because of the carbon price may potentially affect the attractiveness of agricultural land use activities in Australia. In general, higher carbon prices are expected to decrease the profitability and attractiveness of other land use activities, such as agriculture, in favour of timber plantations and environmental plantings which generate carbon credits under the CPRS.

ABARE has been commissioned by the Commonwealth Treasury to estimate the potential increase in afforestation activity on agricultural land under four hypothetical scenarios and a reference case. The key assumptions underlying ABARE estimates are described in some detail in this report. Assumptions relating to the cost of investment of afforestation and the area of land available for switching are important determinants of the land use conversion. Afforestation activity is assumed to include the establishment of commercial plantations and environmental plantings between 2007 and 2100.

In 2021, the inflation rate of the cost of steel products in Australia was **** percent. This was the highest inflation rate of all construction materials in the country. On the other hand, construction materials like timber and metal products saw a inflation of **** percent and **** percent, respectively.

Australia's forestry product exports were estimated to amount to **** billion Australian dollars in the fiscal year 2024. It was also forecasted that this value would increase to around **** billion Australian dollars in the 2025 financial year.

Overview This issue of the Australian forest and wood products statistics (AFWPS) includes updated 2015-16 data for key domestic indicators of forestry sector activity, including sales and service …Show full descriptionOverview This issue of the Australian forest and wood products statistics (AFWPS) includes updated 2015-16 data for key domestic indicators of forestry sector activity, including sales and service income and industry valued added. It also includes interim estimates of the volume and value of logs harvested in 2016-17, along with updated 2016-17 trade statistics for wood products and data for housing and other residential commencements. Key Issues • Forestry industry value added, or contribution to GDP, increased for the third year in a row, growing by 9 per cent to $8.6 billion in 2015-16. Sales and service income for the forestry sector also grew strongly to $23.7 billion in 2015-16 (up 7 per cent from the previous year). • ABARES estimates that Australia's forestry sector continued to grow strongly in 2016-17, with the total volume and value of logs harvested reaching record levels. Estimated total volume log harvest from native forests and commercial plantations increased by 9 per cent to 32.8 million cubic metres and estimated total value increased by 12 per cent to $2.5 billion. • After four consecutive years of growth in residential construction activity in Australia, dwelling commencements fell by 6 per cent to 219,300 in 2016-17. The decrease in commencements of other residential buildings (including units and house conversions) was greater than the decrease in house commencements. • Australia's trade in wood products has been growing since 2012-13 and reached a record level of $8.6 billion in 2016-17. The value of exports reached a record level of $3.4 billion (up 9 per cent from the previous year), while the value of imports fell to $5.3 billion (down 4 per cent from a record level in the previous year). • China was our largest trading partner in 2016-17 for wood products, accounting for over a quarter of Australia's total wood product imports, nearly half of total wood product exports and the majority of total wood products export growth over the year.