<\/p>\n
New Zealand\u2019s forestry sector is ticking along with little drama so far this year, even as the wider global economy continues to send mixed signals.<\/p>\n
February passed without much movement, extending a stretch of steady conditions that feels almost out of character for a market better known for its swings. For now, expectations are modest \u2014 more of the same rather than any sharp turn.<\/p>\n
The usual Lunar New Year nerves in China were largely absent. Port inventories were already low heading into the holiday, and early indications suggest restocking will be measured rather than aggressive. No sudden pile-up of logs on the docks.<\/p>\n
Prices are following suit. A-grade logs into China were sitting at roughly $115\u2013120 per JASm\u00b3 CFR before the holiday, with sellers now testing slightly higher levels. Recent deals suggest small increases of around $2\u20133 per m\u00b3, though higher freight costs are quietly absorbing much of that uplift before it filters back to exporters.<\/p>\n
At the forest gate, returns remain broadly stable. The log price index is holding just above long-term averages, offering some comfort to forest owners without signalling any meaningful upside.<\/p>\n
China continues to dominate as the main outlet, but the underlying issue has not gone away. The country\u2019s property sector remains weak, and while log demand has not deteriorated sharply, it is still lacking a convincing driver for growth. For exporters, that means steady orders rather than stronger volumes.<\/p>\n
There is the usual talk of diversification. India and Vietnam are back in focus, but for now they remain marginal in terms of scale. They offer potential, not immediate relief, and trade discussions \u2014 particularly with India \u2014 are moving slowly.<\/p>\n
The domestic market is providing some support. Construction activity is picking up, feeding demand for structural lumber, while trimmed log prices in parts of the North Island have edged higher.<\/p>\n
Sawmill activity reflects that balance. Output has increased, inventories remain tight, and supply is being absorbed without much friction \u2014 a sign that demand is holding, even if quietly.<\/p>\n
Carbon prices have also started to recover after a softer period, adding a modest tailwind to the sector.<\/p>\n
For now, the forestry industry is not chasing momentum. It is holding prices where it can, managing costs where it must, and watching China closely.<\/p>","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":98251,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5204],"tags":[],"class_list":["post-98250","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news"],"acf":[],"yoast_head":"\n