Log export market update

Wednesday 30 Oct 2019

Market update - At Wharf Gate (AWG) prices for export logs delivered to ports around New Zealand in October increased by an average of 8 NZD per JAS m3.

From the nadir that was July AWG prices, the average AWG prices have now increased by approximately 20 NZD per JASm . Log stocks are relatively low in China and we expect AWG prices to continue their steady increase until the end of the year, due to increased CFR log prices in China.

Export port update - Cargo volumes flat through Port of Tauranga in last quarter. The Port of Tauranga, New Zealand’s international hub port, reported a slight decrease in cargo volumes for the first quarter of the 2020 financial year.

From 1 July 2019 to 30 September 2019, Port of Tauranga handled nearly 6.8 million tonnes of cargo, a 1.1% decrease on the same period last year. Log exports dropped 5.2% in volume to just over 1.7 million tonnes, following a sharp decrease in international prices and demand in the past few months.

Overall export update - Dairy exports boom - Key commodity exports of dairy products and meat increased in value in September 2019, but these rises were partly offset by a fall in the value of log and fruit exports, Stats NZ said yesterday. In September 2019, the value of total goods exports rose $216 million (5.1 per cent) from September 2018 to $4.5 billion, mainly driven by exports to China.

For more details on monthly log exports see: www.stats.govt.nz.

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