NZ monthly sector report - April 2026Friday 8 May 2026
As at mid-April, diesel prices are coming off some ridiculous highs as the sentiment driven brent crude consistently remains below US$100 per barrel. Nice to see fuel companies only badly gouging us rather than royally gouging as they were March to mid-April. Another good news story is some reports suggesting some of those closest to the Red one in the White House are concerned he might be mentally challenged. They appear to be slow to learn in that neck of the woods…. The forestry supply chain has had to dig deep in April to ensure as little as possible impact on forest growers. Loggers and truckers look to be the ones digging the hardest, accepting rate increases to do work that do not cover diesel cost increases. Ultimately the forest owners have the ability to call a stop harvest if their net returns fall below acceptability so everyone has had to recognise that he/she who owns the wood calls the shots and they need to be kept happy. In April, domestic log prices have had to lift and for the most part sawmill owners have recognised the need to keep the saw blades turning. We have also seen lifts in log prices in China and India, with customer concerns NZ supply will slow if they do not accept increases. In NZ, despite the drive to keep going, many harvest operations, particularly those at some distance from ports, have been suspended. This is the direct consequence of the heighted cost of a litre of diesel. Despite market forces remaining in reasonable alignment, a decrease in total forest harvest is the current order of the day, with a 7 to 10% volume drop compared to March depending on who you talk to. Ultimately that will positively impact the wider market where oversupply would otherwise quickly see selling prices drop. International shipping continues to be the biggest talking point. Ships use a fuel product called Bunker. In early April we saw Singapore Bunker rates drop from US1,200 per tonne to currently about US$700 per tonne. High charter rates were being resisted, but the key driver appeared to be market sentiment. More >> Source: Laurie Forestry  | ||
Copyright 2004-2026 © Innovatek Ltd. All rights reserved. |
