China Supplies 44pc of Imports as Australia’s Timber Bill Hits $3B

Why It Matters

The reliance on overseas processing erodes value capture and exposes Australia’s housing supply chain to cost and geopolitical risks, prompting calls for domestic manufacturing expansion.

Key Takeaways

• China supplied 44% of Australia's $2 bn wood import bill
• Plywood, LVL, glulam accounted for 26% of total imports
• Top three categories represent 64% of import spend
• Domestic plantations could meet demand for these product groups
• Import reliance raises strategic risk amid housing shortage

Pulse Analysis

Australia spent roughly $2 billion USD on wood product imports in calendar year 2025, with mainland China alone accounting for $870 million USD – about 44 percent of the total bill. The Australian Bureau of Statistics data, analyzed by IndustryEdge, shows that China’s share is not only the largest single source but also exceeds the combined value of the next four supplying nations. This concentration mirrors a broader pattern of reliance on overseas manufacturers for finished timber, even as the country continues to export raw logs.

The three biggest import categories – plywood, LVL and glulam ($523 million USD), builders’ joinery ($371 million USD) and sawnwood ($367 million USD) – together represent nearly two‑thirds of all wood‑product spending. Australian plantation forests have the fibre volume to produce these items domestically, yet the current supply chain favors low‑cost overseas processing. Recent data show the 12‑month plywood volume surpassed 500,000 cubic metres, a 21.8 percent increase, highlighting both strong demand and the untapped potential of local manufacturing.

The heavy import reliance poses a strategic risk for a nation grappling with a chronic housing shortage. Paying foreign producers to turn Australian timber into structural components undermines self‑sufficiency and exposes the market to geopolitical and freight‑cost volatility. Industry leaders argue that expanding domestic capacity for engineered wood products could lock in value within the Australian economy, create jobs, and support sustainable building practices. Policymakers are therefore under pressure to incentivise local processing and reduce the $870 million USD annual outflow to overseas timber manufacturers.