{"id":79469,"date":"2020-07-06T05:26:01","date_gmt":"2020-07-06T05:26:01","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/forestry-sector-new-zealand-hopes-revival-rollercoaster-ride\/"},"modified":"2025-09-19T08:53:39","modified_gmt":"2025-09-19T08:53:39","slug":"forestry-sector-new-zealand-hopes-revival-rollercoaster-ride","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/forestry-sector-new-zealand-hopes-revival-rollercoaster-ride\/","title":{"rendered":"Forestry sector in New Zealand hopes for revival after rollercoaster ride"},"content":{"rendered":"

While the past few months have been a rollercoaster for many industries, the New Zealand's forest sector has been feeling the effects of Covid-19 since early February.<\/em><\/p>\n

The annual Chinese Lunar Celebrations generally put a halt on log demand for a four-week period during February which results in an inventory build and subsequent reduction in sales price.<\/p>\n

Due to a massive beetle infestation spreading through European spruce forests over the past 18 months, harvest volumes have increased to unprecedented levels with the vast majority of the logs being placed into China at very low prices.<\/p>\n

This resulted in the Chinese log inventory being about 1.5 million cubic metres higher than usual heading into the Lunar holiday. As Covid spread throughout China, the country went into a strictly enforced lockdown while supply points such as New Zealand, Australia and Europe continued to deliver high volumes of logs.<\/p>\n

\"\"<\/a><\/p>\n

This pushed the log inventory to more than 5 million cubic metres, almost double the usual level and the highest in memory, resulting in a significant drop in log prices.<\/p>\n

As New Zealand progressed through lockdown, the Chinese market resumed production at vastly reduced levels and managed to reduce the inventory levels somewhat.<\/p>\n

As the NZ industry resumed in late April, the reduction in inventory allowed New Zealand's log exporters to increase sales prices.<\/p>\n

This, combined with very low shipping rates and a 12-year low in the US foreign exchange rate, resulted in some of the highest returns forest owners have seen since the global financial crisis (GFC).<\/p>\n

Although this was a very welcome shot in the arm for New Zealand's forest owners, it appears to be short-lived because, once again, sales prices have reduced and shipping rates and foreign exchange have both increased.<\/p>\n

The New Zealand domestic log market has remained very stable during this period in terms of both price and demand and there appears to a high degree of optimism among both pruned and unpruned sawmills.<\/p>","protected":false},"excerpt":{"rendered":"

While the past few months have been a rollercoaster for many industries, the New Zealand’s forest sector has been feeling the effects of Covid-19 since early February. The annual Chinese Lunar Celebrations generally put a halt on log demand for … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":64313,"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":[4292,4362,3382],"class_list":["post-79469","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends","category-market-analysis","category-wood-industry-prices","tag-coronavirus","tag-forestry-sector","tag-new-zealand","topic-forestry","topic-sawmilling","area-australia-and-pacific-region"],"acf":[],"yoast_head":"\nForestry sector in New Zealand hopes for revival after rollercoaster ride - 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\/forestry-sector-new-zealand-hopes-revival-rollercoaster-ride\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Forestry sector in New Zealand hopes for revival after rollercoaster ride - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"While the past few months have been a rollercoaster for many industries, the New Zealand's forest sector has been feeling the effects of Covid-19 since early February. 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