{"id":78530,"date":"2019-12-09T11:03:55","date_gmt":"2019-12-09T11:03:55","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/export-prices-for-new-zealand-logs-on-the-rise-in-november\/"},"modified":"2025-09-19T08:52:11","modified_gmt":"2025-09-19T08:52:11","slug":"export-prices-for-new-zealand-logs-on-the-rise-in-november","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/export-prices-for-new-zealand-logs-on-the-rise-in-november\/","title":{"rendered":"Export prices for New Zealand logs on the rise in November"},"content":{"rendered":"
\n

At Wharf Gate (AWG) prices for export logs delivered to ports around New Zealand in November increased by an average of NZ$5 per JASm3. Since July the average AWG prices have now increased by approximately NZ$25 per JASm3.<\/em><\/p>\n

Due to the increase in the AWG prices the PF Olsen Log Price Index for November increased $2 to $121. The index is currently $6 below the two-year average, $5 below the three-year average, and $1 higher than the five-year average.<\/p>\n

Domestic demand for logs remains stable with supply and demand relatively balanced throughout New Zealand.<\/p>\n

Domestic Log Market<\/p>\n

Log Supply and Pricing<\/strong><\/p>\n

There has been little movement in log prices between October and November as supply is locked in for Quarter 4. Most mills report sufficient log supply with the exception of mills cutting pruned logs in the central North Island.<\/p>\n

Sawn timber markets<\/strong><\/p>\n

Domestic demand for sawn timber in New Zealand is stable and still below the levels of last year. Most mills report sales similar to 2017 levels. The record number of building consents (reported in previous Wood Matter) are not translating into record building starts. The local demand for the cuttings and mouldings grades are steady. Mills report a recent lift in demand with summer increasing DIY jobs. There is a lot of sawn timber supply in the domestic market as many mills try to further reduce volumes into export markets. There is especially a lot of supply in the framing grades where there is some downward price pressure.<\/p>\n

NZ mills have always focused on cutting domestic grades as these provide better returns than export timber. This difference will be even more pronounced with the recent announcement of fuel surcharges on ocean freight due to the IMO2020 low sulfur fuel regulations. While the rates of the increases haven\u2019t been confirmed, initial communications are that the Bunker Adjustment Factors (BAFs) will be around 150 USD per 20-foot container and 300 USD per 40-foot container for the Asia trade routes. These BAFs will be introduced December 1st.<\/p>\n

Export Log Market<\/strong><\/p>\n

There has been a very slight increase in sawn timber prices in Asia. Most suppliers think it will be a few months before any significant price increases will be achieved in Asia. One mill supplying Australia has been assisted by a section of their clientele switching demand from H3.2 KD with CCA treatment to H3.1 KD with Azole treatment. The H3.1 only requires one pass kiln drying rather than the two required in the H3.2.<\/p>\n

The top grades in clear sawn timber continues to be in demand in European markets.<\/p>\n

Sawmills in New Zealand have had a pretty tough year. There has been no widespread price increase for sawn timber, yet their costs have increased over the year with the increase in the minimum wage as well as general wage inflation, increased transport and chemical costs. There had been a price increase forecast early in the year, but this didn\u2019t eventuate due to some market players achieving market share. Mills certainly aren\u2019t currently producing records of sawn timber.<\/p>\n<\/div>\n

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

At Wharf Gate (AWG) prices for export logs delivered to ports around New Zealand in November increased by an average of NZ$5 per JASm3. Since July the average AWG prices have now increased by approximately NZ$25 per JASm3. 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