{"id":77817,"date":"2019-07-21T16:37:01","date_gmt":"2019-07-21T16:37:01","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/new-zealand-log-prices-dragged-down-by-chinese-imports-from-europe-coming-by-train\/"},"modified":"2025-09-19T08:51:14","modified_gmt":"2025-09-19T08:51:14","slug":"new-zealand-log-prices-dragged-down-by-chinese-imports-from-europe-coming-by-train","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/new-zealand-log-prices-dragged-down-by-chinese-imports-from-europe-coming-by-train\/","title":{"rendered":"New Zealand log prices dragged down by Chinese imports from Europe coming by train"},"content":{"rendered":"
\n

New Zealand logs are piling up on Chinese wharves as cheap sawn timber arrives by train from Russia and Scandinavia and puts the skids under prices. In three months \u201cA\u201d grade log prices have gone from US$138\/140 a tonne to US$110 a tonne and could sink to US$100-US$105\/tonne.<\/strong><\/em><\/p>\n

NZ Forest Owners Association president Peter Weir said about 5 million tonnes of logs \u2014 mostly from New Zealand \u2014 are sitting unsold on wharves in China.<\/span><\/p>\n

\u201cA comfortable level is about 1 million tonnes and there are quite a few boatloads on the water,\u201d he said.<\/p>\n

Logs are our third biggest export by value \u2014 $5.2 billion last year.<\/p>\n

Weir said the log harvest needs to go on hold for at least six months to allow prices to recover.<\/p>\n

\u201cWe absolutely need the handbrake to go on harvesting here.\u201d<\/p>\n

\u201cThis is a major reset. It\u2019s not a minor bump in the road \u2014 this is big.<\/p>\n

\u201cWe have had a spectacularly good run for the past 5 years with really good prices, but I think the sun has stopped shining,\u201d he said.<\/p>\n

ANZ said, in a market commentary, some mid-year softening of prices is not unusual but the scale of the correction was unexpected.<\/p>\n

The drop in prices will make the harvest of some wood lots unprofitable, it said.<\/p>\n

\u201cHarvest activity in New Zealand is being slowed with some harvesting crews being laid off,\u201d the bank said.<\/p>\n

Forestry Minister Shane Jones said latest developments in the sector had been \u201cdisruptive\u201d and \u201ctumultuous\u201d.<\/p>\n

Jones plans to meet with industry leaders this week to to identify the things Government can do.<\/p>\n

A number of factors have come in to play to shift the world market dynamic.<\/p>\n

A so-called \u201cblock train\u201d \u2014 in which all the wagons carry the same commodity and are shipped from the same origin to the same destination, have emerged as a part of China\u2019s Belt and Road initiative.<\/p>\n

Typically, trains arrive in Europe fully laden but are partly loaded to China, which means cheaper \u201cbackhauling\u201d rates for timber exporters.<\/p>\n

Large volumes of manufactured goods leave China for Europe by train every day. About 30 trains a week travel between Chongqing and Duisburg, Germany fully loaded. The trip takes 12 days versus 45 by ship.<\/p>\n

China Forestry Group, a forest products and management company, said in a market update that a weakening Chinese currency and US taxes applied to Chinese manufactured goods had affected market sentiment.<\/p>\n

It said the Belt and Road initiative had created an opportunity for the backhaul of logs and lumber on trains across Europe and Russia into the middle of China.<\/p>\n

\u201cWe are now seeing this lumber arriving by rail in coastal cities,\u201d it said.<\/p>\n

Big windstorms, and drought stress in Germany, Finland, Czech Republic, Italy and France across 2017 and 2018 have created vast areas of forest that are being accessed for timber.<\/p>\n

China Forestry said having access to lower cost freight opportunities has meant China is a viable market for sawn lumber and logs.<\/p>\n

Beetle-damaged 150-year-old spruce has been heavily sold by governments and forest owners to avoid even more damage as ageing dead timber attracts more insects.<\/p>\n

The global softwood log price is indexed against the amount of pinus radiata on the wharf in China. When log inventory becomes less than a million tonnes, prices go up. When it goes over a million, the price goes down, Weir said.<\/p>\n

\u201c There is a lot higher quality sawn, kiln dried lumber coming from the Russian far east, the Russian northwest, and Finland exported at essentially no cost.\u201d<\/p>\n

\u201cIt\u2019s made it available at a really low cost, so it\u2019s made it tough for the Chinese sawmillers to compete,\u201d Weir said. \u201cAs a consequence they have uplifted fewer logs off the ports.\u201d<\/p>\n

They couldn\u2019t afford what has been a really healthy price for New Zealand radiata, so they have stopped buying it, he said.<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

New Zealand logs are piling up on Chinese wharves as cheap sawn timber arrives by train from Russia and Scandinavia and puts the skids under prices. In three months \u201cA\u201d grade log prices have gone from US$138\/140 a tonne to … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":57897,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4716,4715,4714],"tags":[3722,3382],"class_list":["post-77817","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends","category-market-analysis","category-wood-industry-prices","tag-log-prices","tag-new-zealand","topic-forestry","topic-industry-prices","topic-sawmilling","area-australia-and-pacific-region","area-china","area-europe"],"acf":[],"yoast_head":"\nNew Zealand log prices dragged down by Chinese imports from Europe coming by train - Timber Industry News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.timberindustrynews.com\/ro\/new-zealand-log-prices-dragged-down-by-chinese-imports-from-europe-coming-by-train\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"New Zealand log prices dragged down by Chinese imports from Europe coming by train - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"New Zealand logs are piling up on Chinese wharves as cheap sawn timber arrives by train from Russia and Scandinavia and puts the skids under prices. 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