ANZ Commodity Index Update
Wednesday 13 Oct 2021The forestry index lifted 4.7% to claw back some of the previous month’s losses. Export demand remains relatively robust despite China’s housing development industry being under some pressure. There are plenty of logs sitting on wharves in China, but demand for New Zealand logs is still robust despite the slowdown in end- user demand and the excessively high shipping costs.
Logs are difficult to source from many other markets and the high shipping costs make it particularly prohibitive for China to source logs from South America. Local mills have also been competing strongly with export markets to secure logs.
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