Rising prices for New Zealand’s exports of logs in November

At Wharf Gate (AWG) prices for export logs delivered to ports around New Zealand in November increased by an average of NZ$5 per JASm3. Since July the average AWG prices have now increased by approximately NZ$25 per JASm3, a new report by interest.co.nz reveals.

Due to the increase in the AWG prices the PF Olsen Log Price Index for November increased $2 to $121. The index is currently $6 below the two-year average, $5 below the three-year average, and $1 higher than the five-year average.

Domestic demand for logs remains stable with supply and demand relatively balanced throughout New Zealand, interest.co.nz says.

Sawmills in New Zealand have had a pretty tough year. There has been no widespread price increase for sawn timber, yet their costs have increased over the year with the increase in the minimum wage as well as general wage inflation, increased transport and chemical costs. There had been a price increase forecast early in the year, but this didn’t eventuate due to some market players achieving market share. Mills certainly aren’t currently producing records of sawn timber.

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