{"id":77795,"date":"2019-07-18T06:02:44","date_gmt":"2019-07-18T06:02:44","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/new-zealand-log-prices-drop-dramatically-on-oversupply\/"},"modified":"2025-09-19T08:51:13","modified_gmt":"2025-09-19T08:51:13","slug":"new-zealand-log-prices-drop-dramatically-on-oversupply","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/new-zealand-log-prices-drop-dramatically-on-oversupply\/","title":{"rendered":"New Zealand log prices drop dramatically on oversupply"},"content":{"rendered":"
\n

From a sale price of US$130 per JASm3 for A grade the price dropped -US$15 in one week.<\/strong><\/em><\/p>\n

The CFR sale prices in China for New Zealand logs dropped dramatically in the second half of June.<\/p>\n

Most exporters consider the market bottomed in early July with the lowest A grade sales in the US$105-110 range. This drop has predominantly been caused by an oversupply of logs and lumber along with negative market sentiment caused by the China - US trade war. The average drop between June and July \u2018at wharf gate\u2019 (AWG) prices was NZ$36 per JASm3. This drop in CFR prices and resulting drop in New Zealand AWG prices will have a significant impact on log supply. We expect CFR prices to start moving upward from September\/October as activity increases in China as their temperatures cool.<\/p>\n

The domestic markets for sawntimber produced by New Zealand mills are similar to last year. We are entering the winter season in New Zealand when demand drops but there seems to be fewer forward orders than this time last year. Their sawn timber sales in Asia and China in particular have significant price pressure as buyers try to compete with the falling log prices.<\/p>\n

Due to the drop in the AWG and average domestic structural log prices the PF Olsen Log Price Index for July decreased $16 to $112. The index is currently $17 below the two-year average, $15 below the three-year average, and $7 lower than the five-year average.<\/p>\n<\/div>\n

<\/h2>","protected":false},"excerpt":{"rendered":"

From a sale price of US$130 per JASm3 for A grade the price dropped -US$15 in one week. The CFR sale prices in China for New Zealand logs dropped dramatically in the second half of June. 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