NZ log market - June 2026 [NZ]Friday 26 Jun 2026
This will provide some relief to forest owners who have been battling with below par financial returns. Softwood log inventory in China is slightly reduced with constant log demand. Domestically, sawn timber demand remains firmer than at the same time last year. Fuel surcharges have been reduced as fuel costs ease, helping to alleviate some of the cost pressure across the supply chain. The PF Olsen Log Price Index dropped $3 to $119 in June, which is $1 below the two-year average and level with the five-year average. Domestic Log Market Domestic log processors have reduced the fuel surcharge on domestic sawn timber from 3–4% in June to 1% in July, with the surcharge due to be reviewed again in late July for August pricing. The reduction reflects lower fuel costs and some easing of cost pressures across the supply chain. Most domestic log pricing has remained stable as the market enters Quarter 3. While construction activity remains below long-term averages, sawmill demand has generally held up better than expected through winter. Processors report steady demand across structural, packaging, and industrial timber grades. Revenue from export sales are improved by the weaker NZD. The reduction in domestic processing capacity over the past two years continues to influence market dynamics. Mill closures and production curtailments have tightened timber supply and improved the balance between supply and demand. This has enabled sawmills to maintain pricing despite a subdued construction environment. Residential construction activity appears to have stabilised following the sharp downturn experienced during 2023–2024. Building consent levels have improved from their lows and there are early indications that physical construction activity is gradually increasing. However, non-residential construction remains weak and continues to limit broader timber demand. China CFR prices for A-grade logs from New Zealand are currently in the range of USD 121–127 per JASm³ for the larger exporters. Prices appear to have stabilised in recent weeks, although the relatively wide trading range is expected to persist due to differences in grade mix, customer relationships, contract structures, and individual selling strategies among New Zealand exporters. Softwood log inventories in China have reduced slightly and are now estimated to be in the 2.2–2.4 million m³ range. Daily log offtake remains steady at approximately 55,000 m³ per day, which is encouraging given that productivity and construction activity typically slow during China's hotter summer months. More >> Source: Stand Forestry Limited  | ||
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