{"id":87633,"date":"2024-05-24T04:13:51","date_gmt":"2024-05-24T04:13:51","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/new-zealands-timber-industry-at-risk-due-to-low-domestic-and-international-demand\/"},"modified":"2025-09-18T17:28:13","modified_gmt":"2025-09-18T17:28:13","slug":"new-zealands-timber-industry-at-risk-due-to-low-domestic-and-international-demand","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/new-zealands-timber-industry-at-risk-due-to-low-domestic-and-international-demand\/","title":{"rendered":"New Zealand\u2019s timber industry at risk due to low domestic and international demand"},"content":{"rendered":"

New Zealand\u2019s timber manufacturers are feeling the pinch, with mils reporting \u201cvery low forward orders, indeed worse than last year,\u201d with demand from Australia \u201calso very low.\u201d And despite sales of sawn wood picking up in Asian markets \u2013 namely China and India, New Zealand cannot sustain a sawmill industry without a solid domestic market.<\/span><\/p>\n

That is according to Scott Downs,\u00a0PF Olsen\u2019s Director of Sales and Marketing, who said, \u201cNZ saw millers predict that 2024 will be tougher than 2023.\u201d This is reflected in the latest PF Olsen Log Price Index, which dropped $9 to $113 for April\u2014\u201dthis is $6 below the two-year average and $8 below the three- and five-year average.\u201d<\/p>\n

Last month, Mr Downs reported that more than 85% of logs jamming Chinese ports were NZ radiata pine \u2013 and while daily take-off has now increased from 60,000 to a healthy 75,000 per day, \u201cmarket sentiment, however, remains weak with virtually everyone in the supply chain in China still struggling to consistently make a profitable margin.\u201d<\/p>\n

\u201cThis increase in log buying seems to be more of a reaction to wholesalers dropping prices rather than a fundamental increase in demand.\u201d<\/p>\n

For April, log volumes from NZ to China dropped 25%, with volumes expected to drop even more in May\u2014with prices bottoming out in the US $110-116 range. The volume drop is due to a combination of factors: \u201d wetter Autumn weather slowing down harvest, harvest jobs stopping or slowing due to price levels, volumes now being sold in India, and less volume from windthrow.\u201d<\/p>\n

According to Mr Downs, NZ exports to India \u2013\u00a0restored after both countries tackled the long-running Methyl Bromide dispute\u00a0\u2013 will grow as India (and Australia) capitalise on fumigation issues in South Africa, freight price disputes in South America, supply chain disruptions in the US and increased log prices in European markets.<\/p>\n

\u201cIndian demand for pine logs is expected to increase in Quarter 3, as the Parliamentary election results will be declared on June 4, and the new Central Ministry will\u00a0be formed\u00a0after that,\u201d Mr Downs said, adding that \u201cLabourers will return to sawmills from villages after voting, so production improves.\u201d<\/p>\n

Adding to costs for NZ exporters, \u201cshipping costs from the North Island (of NZ) to China is now in the high 30\u2019s USD per JASm3, with Supramax cargoes above 40 USD.\u201d And whilst the Baltic Dry Index (BDI) has trended downwards, \u201cthis is heavily influenced by a reduction in demand for the larger vessels.\u201d \u201cThe costs for smaller vessels such as Supramax have increased against the trend.\u201d<\/p>","protected":false},"excerpt":{"rendered":"

New Zealand\u2019s timber manufacturers are feeling the pinch, with mils reporting \u201cvery low forward orders, indeed worse than last year,\u201d with demand from Australia \u201calso very low.\u201d And despite sales of sawn wood picking up in Asian markets \u2013 namely … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":96079,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4716],"tags":[],"class_list":["post-87633","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends","topic-forestry","topic-lumber","topic-sawmilling","topic-wood-products","area-australia-and-pacific-region","area-global"],"acf":[],"yoast_head":"\nNew Zealand\u2019s timber industry at risk due to low domestic and international demand - 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\/new-zealands-timber-industry-at-risk-due-to-low-domestic-and-international-demand\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"New Zealand\u2019s timber industry at risk due to low domestic and international demand - 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