NZ log market review of May 2025Friday 13 Jun 2025
The CFR price for A grade logs in China has stabilised around 110 USD per JASm3, but the market will be closely watching the level of log supply from New Zealand over the next few months. Log demand in China is relatively consistent so any significant reduction in log supply will reduce inventory levels. The monsoon season has arrived early in many parts of India and log demand is expected to remain subdued for Quarter 3. There is expectation (or hope) that reduced interest rates will stimulate construction activity in New Zealand, but this is not likely until Quarter 4. The PF Olsen Log Price Index fell $2 to $116. The Index is now $2 below the two-year average, and $5 below the five-year average. Domestic Log Market Many sawmills in New Zealand continue to operate below capacity. There are significantly low inventory levels through the local sawn-timber supply chain. So, when construction activity does increase, there will likely be a shortage of material. Some mill managers think this construction increase could be quite rapid, if the market has confidence interest rates will continue to fall. This increase in construction activity is more likely to oocur in Quarter 4 than Quarter 3. Mill managers report their export markets are very quiet across USA, Europe and Asia due to global uncertainty about markets and geopolitical tensions. More >> | ||
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