New Zealand Log Export Volumes, Prices Rise
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New Zealand continues to be the world’s leading exporter of softwood logs followed by Russia and the U.S. These three countries accounted for almost 50% of globally traded logs in 2015, with a majority being destined for the Chinese market, according to the Wood Resource Quarterly (WRQ), Seattle, Wash., USA.
New Zealand is exporting more than 50% of the country’s total harvest in log form. In 2015, New Zealand exported 14.7 million cubic meters of radiata pine logs, of which almost 10 million cubic meters were shipped to China. This was down from a record high of almost 12 million cubic meters in 2013. In late 2015 and early 2016, Chinese log buyers became more active in the New Zealand log market, with shipments increasing from 1.8 million cubic meters in the 3Q/15 to 2.5 million cubic meters in the 1Q/16.
However, during the first five months of 2016, total New Zealand shipments to Asia have increased slightly, with 2016 year-to-date volumes being 2% higher than the same period in 2015. The biggest rises so far this year have been in shipments to India and South Korea, while exports to China were down 10%.
The good news for log exporters in New Zealand during the past 12 months has been the steady increase in log export prices. The average log export price in May of this year was 36% higher than its six year low in September of last year. The FOB prices for the major destinations in May 2016 had converged to a range of $100-$106/cubic meter, WRQ reported
During the past four years, prices for logs exported to Asia have been on a roller-cost ride, averaging slightly more than $90/cubic meter in 2012, reaching an all-time high of $130/cubic meter in the 1Q/14, falling to $82/cubic meter in the 3Q/15 (the lowest level since 2010), then rising significantly in early 2016. These export log price fluctuations have strongly impacted the price trends for both sawlogs and pulp logs consumed by the domestic forest industry in New Zealand during the past 10 years.
More information about WRQ s available online.
