Affected by the hurricane, there was a shortage of log supply in New Zealand in the first quarter, which led to a 14% increase in the export price of logs in March. It was originally predicted that the price of logs in New Zealand would continue to rise, but according to recent news, between March and April, A-grade Log prices fell to NZ$112 to NZ$115.
Allan Laurie, managing director of Laurie Forestry, said the export price of New Zealand logs needed to be above NZ$120 to be profitable. "We don't recommend forestry workers to continue logging when the price is far below a reasonable return." Obviously the current situation is not good for New Zealand's timber exporters.
This year, New Zealand timber traders have clearly felt the downturn in the Chinese construction market, because even during the seasonal consumption period in China, the demand for New Zealand timber has not increased significantly. "Those timbers that are shipped to China without a contract will have to be sold to Chinese buyers at a lower price."
Affected by insect infestation, European cork output has been greatly reduced. As far as Germany is concerned, the harvest of spruce, fir, Douglas fir and other softwoods in 2022 will be 52.8 million m3, a year-on-year decrease of 14.98%. But Europe's demand for energy wood is growing, and Europe's demand for imported wood is expected to grow until domestic wood production resumes.
In contrast to New Zealand, according to forecast reports, the supply of radiata pine in New Zealand forests may continue to increase until 2025. Combined with the current situation, the Forest Owners Association stated, "Affected by the global economy, the prices of export products including dairy products have not been stable in recent years except for logs. This may be a good time for New Zealand to expand the European market. "
On the whole, China's demand for New Zealand logs and wood products will continue to slow down. If the target market is not shifted, New Zealand timber merchants will not be able to make profits. It is expected that around May, New Zealand will gradually increase its timber exports to Europe.