New Zealand Log Prices - October 2012

In-market log prices have been mixed in a quiet month to October. A grade logs and KS logs have held steady, to be up US$1/JAS. A grade logs are trading at a 2012 high point of US$133/JAS and KS logs are at a 12 month high of US$129/ JAS. Demand has been flat, and inventories have remained in good balance. The less traded KI logs have eased back in prices this month. Pruned logs have ranged in price this month but on average have eased back from Septembers prices. With prices mostly steady, changes in export log prices are mostly driven by foreign exchange and shipping costs.

In-market prices are high enough to attract Canadian logs, though they are at the bottom range for these logs. Construction in the US is increasing and increases in demand will draw logs away from China. The US will have the advantage in securing logs from this market as transport costs will be far less. This may put upwards pressure on prices in China to secure supply. Recent increases in logs shipped from Canada should not affect these prices as they have mostly been pulp logs.

North Island

Domestic: Pruned Grades are up
Export: Pruned grades are down, others are steady

South Island

Domestic: Pruned Grades are up
Export: Pruned grades are down, others are steady

For more detailed reports contact NZX Agrifax at www.nzxagri.com/agrifax

The Agrifax log price data is a weighted average of prices collected each month from a range of New Zealand log buyers and sellers. Log prices shown in the table will vary regionally and by supplier and should only be used to provide a broad trend of log price movements.

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