News on the New Zealand wood market: The export price of New Zealand logs increased by 14% in March, or US$18 per JASm3. With a $8 increase to $135, the PF Olsen Log Price Index reached its highest level since July 2021.
Our view is that the continued shortage of wood supply in New Zealand is the key factor contributing to the rise in log prices. Radisa pine and other log plantations have suffered significant damage in northern New Zealand as a result of the extreme weather. According to predictions, New Zealand's first-quarter log harvest will be lower than in years past.
On the other hand, Europe has also gained market share, as New Zealand's domestic demand for logs is weakening and most logs are exported to Asian markets. The fall in the New Zealand dollar against the US dollar has prompted New Zealand log exporters to raise their offers.
In terms of sawn timber, New Zealand saw a short-term supply problem due to panic buying caused by the epidemic. However, after the supply chain has recovered, the market demand has not kept up, resulting in an oversupply of sawn timber in New Zealand. Currently, New Zealand sawmills are still operating at below normal capacity.
New Zealand sawn timber piled up in the supply chain has a large inventory. In order to achieve "clearance", and the Asian sawn timber market has performed well, it is expected that New Zealand sawn timber may be sold to Asia at a discount.
In general, log prices in New Zealand may still show an upward trend in the second quarter. However, as a major importer of logs from New Zealand, the demand recovery in my country's timber market in the first quarter was not as good as expected, and the import of logs from New Zealand may be reduced.
However, if New Zealand sawn timber is sold at a discount, it is likely to attract the attention of domestic timber merchants. Interested timber merchants can pay more attention to the New Zealand timber market in the near future. However, with the high demand for timber in the European market, it may not be certain that the import of logs and sawn timber from New Zealand will increase in the second quarter. wood168.net wood industry news center.