The At Wharf Gate (AWG) prices for New Zwealand exported logs remained unchanged in December, although there were reported some price increases in a couple of ports where exporters managed to secure favourable spot deals for shipping.<\/p>\n
The CFR sale price in China has bottomed at US$130-135 per JASm3<\/sup>\u00a0for A grade. Shipping congestion has cleared in China and the backlog of log vessels have been discharged without log inventory increasing. Reduced supply in December and January should lead to reduced inventory levels heading into the Chinese Lunar New Year at the start of February. However, log demand in 2022 is still uncertain.<\/p>\n While the AWG price range between exporters and ports remains varied there was some reduction in the range as exporters that had better shipping deals have seen those deals end and there is a more level playing field. A couple of exporters also managed to secure good spot deals on vessels which allowed them to increase AWG prices at certain ports. The drop in sales price in China was countered by the fall in freight costs and the NZD weakening against the USD.\u00a0 The price for logs in China seems to have bottomed at US$130-135 per JAS m3<\/sup>\u00a0for A grade logs.<\/p>\n The PF Olsen Log Price Index remained at $110 for December. The index is currently $12 below the two-year average, $13 below the three year-average and $14 below the five-year average.<\/p>\n Log pricing in New Zealand has generally remained flat as we come to the end of Quarter 4.\u00a0 Many harvesting crews are taking a three-to-four-week break over the festive season. Many NZ sawmills are taking this time to catch up on maintenance etc, so builders expecting a surge of stock to greet them in the new year will be disappointed<\/p>\n Currently in New Zealand there is a shortage of building materials and builders, developers and homeowners are grappling with rising costs. NZ sawmillers continue to report demand exceeds supply for sawntimber. \u00a0There is plenty of demand from clearwood and structural to post and poles for infrastructure demands.<\/p>","protected":false},"excerpt":{"rendered":" The At Wharf Gate (AWG) prices for New Zwealand exported logs remained unchanged in December, although there were reported some price increases in a couple of ports where exporters managed to secure favourable spot deals for shipping. The CFR sale … Continue reading
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