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In March, the export price of New Zealand logs rose by 14%, an increase of US$18 per JASm\u00b3.<\/p>\n
The March PF Olsen Log Price Index increased $8 to $135, which is the highest since July 2021. The index is now $12 above the two-year and $11 above the five-year average.<\/p>\n
It seems that the main reason for the increase in log prices in New Zealand is still the shortage of log supply. As the severe weather has had a major impact on northern New Zealand, log plantations such as radiata pine have been damaged in large areas. It is expected that New Zealand's log harvest in the first quarter will decrease compared with previous years.<\/p>\n
On the other hand, Europe has also gained market share on the Chinese market, as New Zealand's domestic demand for logs is weakening and most logs are exported to Asian markets. The fall in the New Zealand dollar against the US dollar has prompted New Zealand log exporters to raise their offers.<\/p>\n
In terms of sawn timber, New Zealand saw a short-term supply problem due to panic buying caused by the pandemic measures relief in China. However, after the supply chain has recovered, the market demand has not kept up, resulting in an oversupply of sawn timber in New Zealand. Currently, New Zealand sawmills are still operating at below normal capacity.<\/p>\n
New Zealand sawn timber piled up building a large inventory. In order to achieve \"clearance\" it is expected that New Zealand sawn timber may be sold to Asia at a discount.<\/p>\n
In general, log prices in New Zealand may still show an upward trend in the second quarter. However,\u00a0 the demand recovery in China's timber market in the first quarter was not as good as expected, and the import of logs from New Zealand may be reduced.<\/p>\n
However, if New Zealand sawn timber is sold at a discount, it is likely to attract the attention of domestic timber merchants. Interested Chinese timber merchants can pay more attention to the New Zealand timber market in the near future. However, with the high demand for timber in the European market, it may not be certain that the import of logs and sawn timber from New Zealand will increase in the second quarter.<\/p>","protected":false},"excerpt":{"rendered":"
In March, the export price of New Zealand logs rose by 14%, an increase of US$18 per JASm\u00b3. The March PF Olsen Log Price Index increased $8 to $135, which is the highest since July 2021. The index is now … Continue reading