Market trends in Peru

[jim king]

This report appeared in my email this morning from the ITTO.  As you can see our markets have gone from the US taking just about everything available to now virtually nothing.  China is taking over the South American production.


China is the main export destination for Peruvian wood products

Peru's timber exports were hard hit by the international economic crisis in 2009, but the latest statistics show a healthy recovery. In the first half of 2010, wood product exports reached US$82 million, representing a 31% growth from the same period last year.

China was the main market for wood product exports from Peru accounting for 52% of the total exports while the share was 27% in 2008. China increased its imports from Peru by 25% in the first half of 2010 compared to the same period last year.
Peru's wood product exports to NAFTA member countries increased 6% in the first half of 2010, but the share of total exports has dropped from 61% in 2008 to 35%. Mexico was the main importer in the NAFTA market accounting for 20% of the total wood product exports from Peru. Canada increased its import by hefty 116% in the first half of 2010 compared to the same period last year.
Member countries of the Andean Community of Nations (CAN), especially Colombia, increased imports of Peruvian wood products significantly by 72% compared to the first half in 2009. In addition, Chile and some Caribbean countries such as Venezuela, Puerto Rico and Dominican Republic increased their imports of wood products from Peru.
Peruvian semi-manufactured wood products including wood flooring and decking, strengthened their share as the main exported articles.
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[fuzzybear]

   I just heard a report on CBC as to how China is taking over many parts on Africa. They are stripping natural resources and building infrastructure for the countries.  Many are worried that there will be nothing left.  They bring in workers to teach the local people to do the job and when they are done they ship their workers off to the next job and the next group of people to teach.
   With the down turn in the economy most countries have pulled out of Africa. So the Chineese have swooped in and bought up every available mining,forestry, and natural resource business they can get.  They have a "don't ask" policy on how they run their operations.
   They are buying up gold, silver, copper mines here in the north at an alarming rate. The largest hard rock mining operation in North America is opening as I type this...all run and financed by China.
   The Chineese care nothing for safety, just get it out and on it's way back to China. If you complain, your replaced. 

[beenthere]

Some of it may be true, but I suspect it is more media fear perpetuated by the enviros who try to shut these developing countries off from using any of their only resources - wood.

Last I worked with a US company interested in the timber in an African company, there were policies in place that kept any natural resource from being removed (similar to what Jim King has exposed as a problem in Peru). For this small country, their only resource was their wood and they couldn't sell it. Keeps them poor.

I think there is more behind this story than meets the eye.

[Tom]

I'd be willing to bet the the conniving rascals are buying up the world's natural resources, having them shipped to China so that they can retail them in the USA.  Dang middlemen!!   Now China has discovered how to do it.

[fuzzybear]

   China is the biggest importer of raw copper, nickle, and steel.  They need it for all of the cheap electronic devices they export to the world.  China was also the only country whose G.N.P. grew during the recession.  They have eliminated the middle men in securing their raw products.
  This way they can charge the same amount for their crap and make more profit. I wouldn't be surprised if they plan to use the wood to open up a cheap furniture store chain to compete with IKEA. As if the world needs more cheep furniture. :D

[StephenRice]

Some of it may be true, but I suspect it is more media fear perpetuated by the enviros who try to shut these developing countries off from using any of their only resources - wood.

Last I worked with a US company interested in the timber in an African company, there were policies in place that kept any natural resource from being removed (similar to what Jim King has exposed as a problem in Peru). For this small country, their only resource was their wood and they couldn't sell it. Keeps them poor.

I think there is more behind this story than meets the eye.

If China does not care about the welfare of its own workers, then why on earth would they actually care about the welfare of contracted workers in other countries, especially poor ones?  To them, these foreign workers are just a means to an end, legalized slave labor that they do not need to feed.

[Banjo picker]

China already has the market in their pocket for the rare earth ...that the new car batteries have to have...As I understand it they have quite a lot on their home turf, but are buying up the remaining pockets around the world....We will all feel the pinch from that eventually if not already...Tim