South Africa: Domestic mills face prospect of starting New Year with high stocks

Analysts report that there is little activity in the building sector and that most of the current work is on finishing existing contracts before the builders holidays which starts on the 16 December.

On the domestic front the pine market is said to be steady but the usual year end activity has not made much of an impact on the high stocks being carried by the mills.

The prospects of starting the New Year with such high stocks will make almost impossible to push ahead with any price increases which are required to off-set rising log prices and the anticipated increases electricity charges.

The property market remains weak. Many building plans have been approved but most people are waiting to see the outcome of the ANC elective conference which is scheduled for mid-December as this could change the political and economic climate in the country.

By www.fordaq.com