21 INTEGRATED ANNUAL REPORT 2026 SDG 2 (Zero Hunger), SDG 3 (Good Health and Well-being), SDG 4 (Quality Education), SDG 7 (Affordable and Clean Energy), SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation and Infrastructure), SDG 10 (Reduced Inequalities), SDG 12 (Responsible Consumption and Production), SDG 13 (Climate Action), SDG 15 (Life on Land), SDG 16 (Peace, Justice and Strong Institutions) and SDG 17 (Partnerships for the Goals). Market Review For the period under review, the international Asian woodchip market maintained a subdued tone, with market sentiment weighed down by macroeconomic pressures and shifting fibre dynamics. The reintroduction and escalation of U.S. trade tariffs under the Trump administration added further strain to the Chinese economy, dampening manufacturing output and paper demand, and in turn softening appetite for imported hardwood chips. This was compounded by China’s struggling property sector, which generated increased volumes of domestic wood residues; these surplus chips displaced a portion of import demand and reinforced buyers’ already cautious stance. Dollar-denominated prices reflected this softness, trending lower through much of the year and remaining under pressure as Chinese buyers leveraged both weak demand conditions and ample local supply in price negotiations. At the same time, Japan’s structural decline in paper consumption continued as expected, steadily eroding one of the market’s historically stable demand anchors. Against this backdrop of weakening demand in both major markets, competition among exporters intensified. Australian suppliers responded aggressively by lowering offer prices to regain competitiveness into China and Japan, effectively resetting the marginal price level in the market. Southeast Asian producers retained advantages in freight and proximity, but their pricing power was similarly constrained. South African exporters faced a more competitive landscape as a result, with improved logistics offset by limited ability to command premium pricing. Overall, the year under review was characterised by a buyer-driven market, persistent oversupply pressures, and a more defensive posture across the global supplier base. This resulted in hardwood volumes dropping year on year by 7%.
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