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Despite a strengthening NZD, the At Wharf Gate (AWG) prices for New Zealand exported logs in May increased an average of $13 per JASm3 from April prices.

The price for A grade logs at the start of May was about 183 USD per JASm3. In mid-May the prices are now around 185 USD per JASm3. The rate of increase in log prices has slowed with some mills in China now struggling with the higher log prices.

Log prices were relatively unchanged as prices are predominantly fixed for Quarter 2. There is plenty of log supply for local mills with relatively good weather as autumn concludes in New Zealand.

Log demand in China is outpacing supply with the Chinese construction activity now above pre-Covid levels. The Chinese government which had stimulated the economy post Covid-19, has signalled an intention to take the heat out of the commodities market.

The PF Olsen Log Price Index increased $6 to a record $138 in May. The index is currently $18 above the two-year average, and $14 above the three and five-year averages.

The post New Zealand log export prices to China continue to rise in May appeared first on Timber Industry News.