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

 

NZ export log prices increase in October

NZ export log prices increase in October as Chinese inventories decline

By Tina Morrison

Oct. 20 (BusinessDesk) - New Zealand export log prices increased this month as inventories reduced on Chinese ports on lower volumes and a pick up in demand.

The average wharf gate price for New Zealand A-grade logs rose to $83 a tonne from $82 a tonne in September, according to AgriHQ's monthly survey of exporters, forest owners and sawmillers. The AgriHQ Log Price Indicator, which measures log prices weighted by grade, increased to 88.41 from 87.83.

Prices for New Zealand export logs are largely determined by China, the country's largest market, where weaker demand has seen a build up of inventories. A decline in the number of logs sent to China and a pick up in demand has reduced inventories on Chinese ports to 3 million cubic metres from 4.7 million cubic metres in August, which is supporting prices.

"While credit lines are still posing problems, consumer confidence has lifted which has helped bolster domestic demand within the Chinese market," said AgriHQ analyst Emma Dent. "Should volumes to China remain low, and off-take from ports hold at steady levels, price increases are likely."

Still, while most participants in the survey are expecting price increases, the market remains volatile and uncertain, Dent said.

Prices and inventories heading into the Chinese New Year period in February, when ports are closed, will play a strong role in determining how the market plays out next year, she said.

Meanwhile, prices for New Zealand domestic logs were steady this month with pruned logs at $164 a tonne, structural logs at $105 a tonne, and pulp logs at $50 a tonne, according to the survey.

Logs, wood, and wood articles are New Zealand's third-largest commodity export behind dairy products and meat.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Fuels Rushing In: Govt "Ready To Act" On Petrol Market Report

The Government will now take the Commerce Commission’s recommendations to Cabinet...
• A more transparent wholesale pricing regime • Greater contractual freedoms and fairer terms • Introducing an enforceable industry code of conduct • Improve transparency of premium grade fuel pricing... More>>

ALSO:

Reserve Bank Capital Review Decision: Increased Bank Capital Requirements

Governor Adrian Orr said the decisions to increase capital requirements are about making the banking system safer for all New Zealanders, and will ensure bank owners have a meaningful stake in their businesses. More>>

ALSO:

Aerospace: Christchurch Plan To Be NZ's Testbed

Christchurch aims to be at the centre of New Zealand’s burgeoning aerospace sector by 2025, according to the city’s aerospace strategic plan. More>>

ALSO:

EPA: Spill Sees Abatement Notice Served For Tamarind Taranaki

The notice was issued after a “sheen” on the sea surface was reported to regulators on Thursday 21 November, approximately 400 metres from the FPSO Umuroa. A survey commissioned by Tamarind has subsequently detected damage to the flowline connecting the Umuroa to the Tui 2H well. More>>

Taskforce Report: Changes Recommended For Winter Grazing

A Taskforce has made 11 recommendations to improve animal welfare in intensive winter grazing farm systems, the Minister of Agriculture Damien O’Connor confirmed today. More>>

ALSO: