For New Zealand, forestry is New Zealand's third largest export product , with annual revenues of more than US$6.7 billion at one time. Most of wood exports are logs. The trade problem between Australia and China means that Australia currently has no opportunity to send logs to China, and the Chinese log import business has chosen to hand over to New Zealand. Of which 70% -80% will be sold to China .<\/p>\n
At the beginning of the Chinese peak season, the daily consumption of New Zealand's eastern coastal areas could exceed 85,000 cubic meters, which means that in five days, the Chinese market consumes more logs than New Zealand exports in one month.<\/p>\n
For New Zealand, since 2008, logs shipped to China have soared from 1 million tons per year to about 20 million tons this year. China's strong and continuous demand continues to push the number of logs exported by New Zealand has increased significantly.<\/p>\n
Although New Zealand's export business is becoming stronger and stronger with Australia's background, domestic supply problems are beginning to appear. Due to the distortion of the log trade, New Zealand's timber processing industry is in trouble . For China, as the world's factory, it will be more willing to import logs for domestic processing, which can create employment opportunities for Chinese workers.<\/p>\n
80% of New Zealand's wood is exported, and there is a shortage of domestic supply of wood for processing construction . In addition, the shipment of New Zealand logs to China ultimately results in the local price of New Zealand logs that cannot be afforded by processors. The shortage of supply and insufficient income have left New Zealand's wood processing industry in a predicament, unable to process logs into more valuable products for export.<\/p>\n
Unfortunately, the spread of the epidemic prompted New Zealand to make a policy decision to close the border, which stimulated the entire supply chain's demand for domestic construction and renovation. The real estate boom in New Zealand once set the country's history. The demand for construction timber required to build houses once increased sharply, causing market demand to fall short of demand. Housing prices rose along with the adjustment of timber prices.<\/p>\n
New Zealand tried very hard to solve the affordability problem of New Zealand housing, but it was hindered by the shortage of timber. Members of New Zealand continued to warn major domestic building materials company Carter Holt Harvey because of the shortage of domestic wood raw material supply, constantly reduced sales volume of timber stock , and this decision will have a significant impact on the real estate market.<\/p>\n
Considering that New Zealand is planning to build more houses, and the ability of domestic wood processors to increase production is limited by the supply of wood raw materials. New Zealand is likely to limit the share of timber exports in the future to prevent some construction materials from offshore.<\/p>\n
In the first quarter of 2021, China imported 4.3206 million cubic meters of logs to New Zealand, valued at US$594 million, ranking first among China's log importing countries during the same period , showing the importance of New Zealand to China's timber import business. Recently, a number of timber supplier countries announced restrictions on timber export quotas, giving priority to meeting the needs of domestic operations, production and construction. The international timber supply chain is deteriorating day by day, and domestic demand for timber has begun to bottom out. The future supply of the timber market is facing tightening, and prices may fluctuate.<\/p>","protected":false},"excerpt":{"rendered":"
For New Zealand, forestry is New Zealand’s third largest export product , with annual revenues of more than US$6.7 billion at one time. Most of wood exports are logs. The trade problem between Australia and China means that Australia currently … Continue reading