ASB: Warning to log exporters
Wednesday 6 Mar 2019Warning for forestry exporters following 'fantastic' record year - Amid record returns for forestry exporters, the sector in New Zealand is being warned to take notice of the global demand for logs is beginning to trend downwards.
An increased market share for New Zealand's exporters, against declining market share for both Canada and the United States, has bolstered the sector's earnings: 2018 exports receipts were up by $684 million against 2017.
ASB senior rural economist Nathan Penny said 2018 had been a "fantastic" year for the sector, 2019 had started where it left off and, in New Zealand dollar terms, the forestry index was at record levels.
However, Penny questioned whether prices this year would continue at the same level as 2018.
"We're doubtful. Global demand for logs is actually falling, with log import volumes dipping around 2 per cent in three months to November compared to the same three months a year ago," he said.
Penny is anticipating global log demand will fall further, given world economic growth was slowing, particularly in China.
"China is the world's largest importer of logs and NZ's largest market by a long shot," he said.
Source: NZ Herald
Copyright 2004-2019 © Innovatek Ltd. All rights reserved.