Scion’s 14th Log Price Outlook SurveyIn May, fifty-eight people from various parts of New Zealand’s domestic and international forestry products supply chains participated in this outlook. These participants represent a substantial component of the NZ forestry industry.
Log price outlooks remain stable. For the third quarter in a row, participants expect little immediate movements in log prices and anticipate a slightly higher future pricing regime. Volumes are also expected to be relatively consistent with perhaps a 5% increase over the next 6 months. However, various participants express a concern that harvesting crews, transporters and port infrastructure are starting to reach maximum capacity.
With the exception of domestic processors, business expectations over the coming 12 months are still relatively positive. In many cases more business optimism was voiced in May 2018 compared to February 2018, however, caution should be exercised since these indices have only been calculated twice and certain calculation adjustments have been made.
Figure 1: Wharf log price outlook (A Grade is used as a general proxy)
To access previous outlook reports please visit this web site.
If you operate a business anywhere along the forestry products supply chain then please consider casting your vote in our August Outlook. All information is treated as confidential and results are reported anonymously and at an aggregated scale only. The Outlook will be shared exclusively with participants in September and will only become available publicly in October.
You can start the survey by clicking here. Please participate before Friday 31 August.
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