Export volumes in February were 1.6% ahead of the three-month average and 18% up on the same time last year as weaker exports to India and South Korea were offset by strong exports to Japan and China.
Lumber exports also picked up, with February export volumes up 25% on the same time last year, driven by strength in China and the United States.
Overall, the log trade into China, New Zealand’s largest log market, weakened in February with imports down 32% on the three-month average and 14% below the same time last year because of the disruption of Chinese New Year celebrations, AgriHQ said. A similar pattern occurred for lumber imports, down 18% on the same time last year and 34% below the three-month average.
“It is forecast for log and lumber inputs to remain strong or to increase further on past years,” analyst Reece Brick said.
“If the past month is any indication then 2018 should be another good year for the export log trade.
“Any post-Chinese New Year jitters have essentially disappeared as the port-level log offtake has risen to the level required to keep the market sturdy.”
Brick said buyers in China are becoming more selective about their logs based on the fairly large volume of logs still at ports, with the AgriHQ Log Price Survey showing lower value logs held at levels near to a month ago while better quality logs trended upwards.
Higher shipping rates and a higher local currency weighed on the export log market through March and early April though they appear to be short-term issues and overall the export log market is in a healthy position. – BusinessDesk
