Almost 3 years of log export growth
Wednesday 28 Nov 2018Don't count your chickens - have a look at the chart below. It's doubtful anyone would have ever forecast almost three straight years of growth in log exports, but that's exactly what's happened.
How long this can continue is anyone's guess, but there is plenty of information about what may come if you want to pay for the vision from your favourite forecaster's in-market and in-depth analysis.
On one hand, it appears that New Zealand is one of last non-tariff suppliers of softwood logs to China, now that Russia and USA have tariffs in place to balance their trade somewhat in favour of exporting lumber instead, in Russia's case. Canada prefers to sell lumber for western-style housing there, with plenty of subsided support from Canadian market groups on technical guides to do so.
On the other hand there is plenty of forest establishment in the pipeline across the vast continent of China, so one day the tide may start to turn on demand for our logs.
Once again, thanks to the team at Champion Freight for their exclusive supply of this information to WoodWeek subscribers.
Source: Champion Freight
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