PF Olsen market summary
Wednesday 13 Mar 2019PF Olsen provide an excellent and detailed Market Summary in their current Wood Matters issue - Here's a snapshot.
At Wharf Gate (AWG) prices for logs delivered to ports around New Zealand decreased on average 5 NZD per JASm3 in March from the highest February prices. This decrease in AWG prices is due to increased ocean freight costs for export log cargo. Most CFR log prices in China were flat to a modest increase of 1 USD per JASm3. ‘A’ grade export now sells for up to 143 USD per JASm3 in China and 155 USD per JASm3 in India.
The domestic market for logs has continued the very stable start to 2019. There has been some capacity taken out of the pruned market with the closure of the Waverley sawmill, but other mills producing clear sawn timber are already at capacity.
Due to the drop in the AWG sale prices for export sawlogs the PF Olsen Log Price Index decreased $3 in March to $134. The index is currently $6 above the two-year average, $9 above the three-year average, and $17 higher than the five-year average.
Source: PF Olsen Wood Matters
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