New Zealand Log Prices - July 2012The volume of logs exports from New Zealand in May dropped back by 21% from the record level of log exports recorded in April 2012. The volume of product exported into China and South Korea were well down on the same month in the previous year, falling 25% and 55% respectively. Demand from India was still solid in May with logs totally more than 200,000m³ exported to this market. In May log exports to Japan from New Zealand reached record monthly levels, compensating for the very small volumes exported in the previous month.Demand from China for imported logs has eased in recent months. In the 3 months to May 2012 China imported 15% less logs than in the same period in 2011. Russia continued to dominate supply in this period although the volume supplied by Russia was down 20% on the same time last year. Imports from Canada were on par with the previous year, while supplies from the US dropped by 28%. In the 3 months to May 2012 New Zealand supplied 2.3 million m³ of logs to China, 6% more than in the previous year. During the same time period Russia supplied 2.8 million m³. The volume of logs going into South Korea in May 2012 fell back in-line with normal seasonal demand. During March and April the volume of logs demanded by this market doubled from the same time the previous year. Despite overall demand easing back in May, New Zealand maintained their market share supplying over 60% of the logs imported by South Korea in that month. Like South Korea, Japan’s demand for logs eased back in May 2012. The volume of logs entering Japan in May 2012 was 24% down on the same month in 2011. Canada and the US continue to dominate supply to this market with a combined market share of approximately 80% this year. In the 5 months to May 2012 New Zealand market share was only 4.5% down from 27% in the same time period in 2011. The Agrifax Log Price Indicator moved up 1 point to 83 points this month. Prices were generally firmer for all grades of logs in the North Island. While in the South Island prices tended to be steady. Firmer prices were generally recorded for export grade logs, while prices tended to consolidate for the domestic grades. In-market returns for logs eased slightly this month. But due to the increase in the value of the New Zealand dollar returns were eroded further in local currency terms. Shipping prices are similar to the levels recorded a month ago. The cost of shipping logs to the main Asian markets is currently US$2-3/tonne less than it was a year ago. The Agrifax Log Price Indicator is currently NZ$2 per tonne lower than it was a year ago. Prices for unpruned logs are up from year ago levels. While pruned log prices are well down as are prices for pulp grade logs. North Island
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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