News | Business
27 Apr 2017 22:55
NZCity News
NZCity CalculatorReturn to NZCity

  • Start Page
  • Personalise
  • Sport
  • Weather
  • Olympic Games
  • Finance
  • Shopping
  • Jobs
  • Horoscopes
  • Lotto Results
  • Photo Gallery
  • Site Gallery
  • TVNow
  • Dating
  • SearchNZ
  • NZSearch
  • Crime.co.nz
  • RugbyLeague
  • Make Home
  • About NZCity
  • Contact NZCity
  • Your Privacy
  • Advertising
  • Login
  • Join for Free

  •   Home > News > Business

    Housing lifts local log market to records

    The demand for new houses and a booming horticulture industry has stoked demand for local logs, sending prices to record highs.


    Buoyant New Zealand activity has pushed up local log prices to new record highs.

    The average price for roundwood logs used in the horticulture sector rose to $92 a tonne in March, up $2 from February's average price and at the highest level since AgriHQ began collecting the data in early 2002, according to AgriHQ's monthly survey of exporters, forest owners and saw millers.

    Structural log prices also increased, with S3 logs hitting $114 a tonne, the highest since AgriHQ began collecting the data in early 1995, while S1 logs rose to $122 a tonne, the highest since mid-1994.

    Record high net migration and low interest rates are putting pressure on the nation's housing market, driving up prices and stoking construction activity. A booming horticulture industry is also spurring investment activity in that sector, helping drive demand for roundwood.

    "Orders were flowing into sawmills at a constant but rapid rate, mainly underpinned by the ever present housing construction sector, especially around Auckland," said AgriHQ analyst Reece Brick.

    Demand remained firm in the pulp, pruned and roundwood markets.

    "There's been little sign of any stagnation in the roundwood trade," Mr Brick said.

    "Reports suggest many mills are running at or near their maximum capacity as orders keep coming in, and log supply is too tight to prevent any prices increases."

    However, there was some concern about whether structural log prices might soften as inventory levels increased at North Island mills heading into winter when construction demand tended to slow.

    Meanwhile, export prices for New Zealand logs softened by about $2 a tonne across the range of logs measured by AgriHQ.

    The key factor behind weaker wharf-gate markets was the sudden increase in shipping rates rather than oil prices, Mr Brick said.

    Forest products are New Zealand's third-largest commodity export group behind dairy and meat products.


    NZN




    © 2017 NZN, NZCity


     Other Business News
     27 Apr: Relief over NAFTA helps lift NZ dollar
     27 Apr: Government to spend $11b on infrastructure
     27 Apr: NZ dairy expansion will hit limits
     27 Apr: Air NZ ups capacity on domestic routes
     27 Apr: Rental house conditions sub-par: report
     27 Apr: AWF plays down share spike query
     27 Apr: NZD hits four-month low on Trump tax plan
     Top Stories

    RUGBY RUGBY
    Halfback Hall in as sole Crusaders change More...


    BUSINESS BUSINESS
    Relief over NAFTA helps lift NZ dollar More...



     Today's News

    Rugby:
    Halfback Hall in as sole Crusaders change 21:56

    Rugby:
    Injury-hit Force ring in rugby changes 21:16

    Business:
    Relief over NAFTA helps lift NZ dollar 18:56

    Rugby:
    Wallabies coaches on hand for Waratahs 18:36

    Soccer:
    A-League semi-finals preview panel 18:06

    Law and Order:
    Families 'overwhelmed by kindness' 17:26

    Law and Order:
    Fleeing car closes Dunedin motorway 16:56

    Law and Order:
    Three scenes being examined by police 16:16

    Business:
    Government to spend $11b on infrastructure 16:16

    Accident and Emergency:
    SH1 reopens after Northland crash 15:26


     News Search






    Power Search


    © 2017 New Zealand City Ltd