MPI forestry exports update
Wednesday 1 May 2019
Total forest products revenue is forecast to reach $6.8 billion for the year ending June 2019, an increase of 7.0 percent from 2018, based on strong growth in log export volumes. Much of this growth has come from increased Chinese demand for New Zealand logs, supporting both robust prices and near- record export volumes.
Log export revenue reached a record $972 million for the December quarter, almost 2 percent up on the previous quarter and 6 percent up on the same quarter last year. As a result, the log export forecast for the year ended June 2019 has been revised upward to $3.6 billion.
Demand is expected to remain steady over the next year, with an expected increase in Chinese residential construction despite a weakening Chinese economy.
There is also an expectation that China’s government will increase spending on infrastructure to help stimulate the economy. Any increase is likely to support demand as New Zealand logs are often used for boxing concrete.
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