New Zealand Experiencing a Sharp Fall in Log Prices

Original Source:
Low log prices hurting
New Zealand is currently reporting a sharp fall in log prices. Evan MacClure, a Timaru-based director for Forest Management (FM) said “an estimated 30% drop in price” will impact both companies and contractors. MacClure went onto say, “The market has not the best it’s been, but it certainly is not the worst it’s been over the last 30 years. We’re back in business selling wood, and we’ve got regular ships booked right up to the end of December so that is positive.” MacClure said the lack of exports during lockdown, and the increase in demand in May had created a false market, which was bound to drop with China being unable to resume trade with Europe and America. “Log prices were artificially quite high and stocks in China were down. There was a flurry to produce a lot of wood in May which a lot of exporters did.”

FEA compiles the Wood Markets News from various 3rd party sources to provide readers with the latest news impacting forest product markets. Opinions or views expressed in these articles do not necessarily represent those of FEA.