Investment portal iNVEZZ.com has released a new article looking at the continuing rally in lumber prices and its positive impact for forestry investment enterprises.
iNVEZZ, a new investor portal, today published a news article focusing on the lumber prices rally as one of the factors creating a favourable climate for forestry investment enterprises.
In its article, iNVEZZ notes the recent price movements of lumber, currently up 44 percent on prices reached in 2012. To provide a broader perspective for investors contemplating a stake in forestry investment ventures, the article looks at the reasons behind the lumber price rally, with that most commonly cited being the recovery in the US construction sector. iNVEZZ notes though that the US housing market is not the only driver of lumber demand, with demand in China's wood market also being a factor.
The article also looks at the reasons for the currently constrained global supply, particularly out of Canada, with lower supply being the other main factor behind the lumber prices rally. iNVEZZ quotes data showing that Canada's lumber supply problems are largely due to beetle infestation, which has reportedly affected production especially in British Columbia and Alberta.
iNVEZZ then presents a lumber demand-supply outlook for 2013 and beyond. The investors' portal quotes a recent forecast of a shift in the global lumber supply-demand balance, with North America's recovery, Japan's consumption and China's economic growth likely to drive overall global lumber consumption higher. The article also comments on the factors which could provide opportunities for exporters based in Europe and Russia.
The article concludes that the favourable supply-demand ratio and particularly the projected lumber undersupply over the next few years are set to benefit forestry investment enterprises.
The commentary can be found in the iNVEZZ news section, which provides readers with timely news and information on current developments in the investment world. iNVEZZ also provides in-depth analysis on topical investment issues, providing insights into mainstream investment products and markets.
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