New Zealand Experiencing a Sharp Fall in Log Prices

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.”