Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

NZ export log prices hit 3-year low; may start picking up

NZ export log prices hit 3-year low; may start picking up as demand improves

By Tina Morrison

May 19 (BusinessDesk) - New Zealand export log prices, which fell to a three-year low this month, may start to pick up as demand improves in China, the country's largest market.

The average wharf gate price for New Zealand A-grade logs fell to $83 a tonne in May, from $94 a tonne in April, marking the lowest price since May 2012, according to AgriHQ's monthly survey of exporters, forest owners and sawmillers. The AgriHQ Log Price Indicator, which measures average log prices weighted by grade, dropped to 88.40 from 93.29 in April.

The price for New Zealand A-grade logs delivered to China fell to US$99/JAS from US$111/JAS last month, the lowest level since AgriHQ started collecting the data in 2012. While inventories currently sit at about 4 million cubic metres, double normal levels, Chinese sawmills have stepped up demand, taking an average 65,000 tonne per day from the ports, leading to optimism that the bottom of the market has been reached and prices will now start rising, AgriHQ said.

"High take off from ports is a good indicator that ports will start to clear which will increase demand leading to prices returning to normal levels," said Emma Dent, an analyst at AgriHQ. "This isn't an overnight fix though; it will take some time for prices to get back to normal levels."

She said the latest survey showed people in the market expected prices may rise between US$5/JAS and US$10/JAS next month.

Demand for New Zealand structural logs remains steady, due to local demand for housing, particularly the shortage of houses in Auckland, Dent said.

However, prices for structural lumber dropped to $107 a tonne this month from $108 a tonne last month, weighed down by lower export prices and as a higher New Zealand dollar dented demand in the key Australian market, leading to an oversupply in the New Zealand domestic market.

Pruned logs continued to rise this month with the average price sitting at $161 a tonne from $160 a tonne last month. Average prices in the North Island at $164 a tonne continued to outpace the South Island at $148 a tonne due to tight supply in the Central North Island, Dent said. There were more pruned logs available heading into winter, she said.

Wood is New Zealand's third-largest commodity export, behind dairy products and meat.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Banking: Westpac NZ Lowers Merchant Fees For Small Businesses

Westpac NZ is rolling out a new merchant fee pricing structure that will lead to cost savings for more than 10,000 small and medium Kiwi businesses, and could make contactless transactions more widely available for customers. On 1 September, most ... More>>

REINZ: Million Dollar Plus Property Sales Increase 11.7% Nationally

The number of properties sold around the country for one million dollars or more during the first half (H1) of 2020 increased by 11.7% compared to H1 2019, with 5,426 million-dollar plus properties sold (up from 4,858 in H1 2019) according to the Real ... More>>

Waste: Government To Regulate Plastic Packaging, Tyres, E-Waste

The Government is stepping up action to deal with environmentally harmful products – including plastic packaging, tyres and e-waste – before they become waste. As part of the wider plan to reduce the amount of rubbish ending up in landfills, ... More>>

ALSO:

Bankers Association: Banking Becomes First Living Wage Accredited Industry

Banking has become New Zealand’s first fully living wage accredited industry, leading to nearly 1800 employees and contractors moving onto the living wage and gaining greater economic independence for them and their families. As of today, all ... More>>

ALSO:

Economy: Funding For 85% Of NZ Not-For-Profit Entities Impacted By COVID-19

Results of a recent Institute of Directors poll show that 85% of board members on not-for-profit organisations say COVID-19 has moderately or significantly affected their funding. The ‘pulse check’ conducted in the first two weeks of July looked ... More>>

Volcano Detection: Eruption Alert System Would Have Given 16 Hours’ Warning At Whakaari

An alert system that could have given 16 hours’ warning of last year’s eruption at Whakaari/White Island is ready for deployment, University of Auckland scientists say, with warning systems for Ruapehu and Tongariro the next priority. ... More>>


Property: Queenstown Rents Experience Biggest Drop In Seven Years

Rental prices in the Queenstown-Lakes district saw the biggest annual percentage drop in seven years after falling 28 per cent on June last year, according to the latest Trade Me Rental Price Index. Trade Me Property spokesperson Aaron Clancy said ... More>>

Seismology: The Quiet Earth

As many daily activities came to a halt during lockdown, the Earth itself became quiet, probably quieter than it has been since humans developed the technology to listen in. Seismologists have analysed datasets from more than 300 international ... More>>

RNZ: James Shaw Says Kiwibank, Not Ministers Should Decide On Investors

Climate Change Minister James Shaw says Kiwibank's decision to stop doing business with companies dealing in fossil fuels is the right one. More>>

ALSO:

FMA: Kiwis Confident Financial Markets Will Recover From COVID-19, Plan To Increase Investments

Despite the majority (60%) of investors experiencing losses as a result of COVID-19, the outlook on investing remains positive, according to a Financial Markets Authority (FMA) survey. Most Kiwis (71%) were optimistic that the pandemic will pass eventually ... More>>

FIRST Union: Warehouse Using Covid For Cover As Extensive Restructure Makes Everyone Worse Off

(FIRST Union comments on The Warehouse consultation and proposed restructure) 'Unfortunately the Warehouse have done the disappointing thing and used Covid-19 to justify a bunch of operational business decisions that will leave hundreds of workers without jobs ... More>>

ALSO:

Stats NZ: Mixed Performance By Regions Leaves National Emissions Picture Unchanged

Approximately two-thirds of New Zealand’s regions recorded decreases in their total greenhouse gas emissions, while one-third of regions saw increases between 2007 and 2018, Stats NZ said today. “While some regions reduced their emissions, ... More>>

RNZ: Economic Activity And Business Confidence Bouncing Back

Two surveys from ANZ show business confidence and economic activity have rebounded, but uncertainty about the future remains extreme. More>>

ALSO: