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New Zealand Log Prices Crash 19% In 2002
2002.12.19


Log Prices Crash 19% In 2002

Confirmation today that a dramatic drop in New Zealand log export prices is being disguised by big volume increases. Ministry of Agriculture and Forestry senior analyst, John Eyre says the average price of export logs decreased by over 19% percent in the 2001/02 March year, coming off a seven-year high in 2000/01. But a 24% jump in export volumes kept the overall value of the trade at around the same as the previous year. Better news for lumber exports: volumes for the year grew eight percent and prices remained steady.
Longer term, the MAF analyst is more optimistic. Looking out to 2005/06, increases in wood available for harvesting will push production up, with steady growth for both logs and
lumber, although price increases for logs are expected to be soft. The outlook for lumber export volumes is good in the early part of the forecast period, with continuing favourable market conditions in Australia and the US.


Source:NZFORESTY

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