News | Business
25 Nov 2017 20:48
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
     25 Nov: Source of foul smell in Auckland revealed
     25 Nov: Kiwi shoppers splurge ahead of Christmas
     24 Nov: NZ shares mixed; Ryman and Stride gain
     24 Nov: ComCom to appeal agents' price-fixing win
     24 Nov: Northport issues 'vision for growth'
     24 Nov: Aussies close to NZ in Pacific trade plans
     24 Nov: Warehouse readies for survival of fittest
     Top Stories

    RUGBY RUGBY
    Simplicity key to last Test win: Whitelock More...


    BUSINESS BUSINESS
    Source of foul smell in Auckland revealed More...



     Today's News

    Motorsports:
    Whincup's Supercars title hunt blown apart 20:06

    Cricket:
    West Indies in the runs in tour opener 19:16

    Politics:
    Tamaki defies critics at Auckland rally 18:36

    International:
    NZ condemns terrorist attack in Egypt 18:06

    International:
    Donald Trump tweets he'll 'probably' be named Time magazine's 2017 Person of the Year 17:46

    Politics:
    Outside team to report to Govt on housing 17:26

    Education:
    Kiwi students physically restrained 16:56

    Entertainment:
    Noel Gallagher has dismissed his brother Liam as his "former tambourine player" 16:50

    Entertainment:
    Keith Urban fell "in love" with Thanksgiving when he saw a traditional dinner 16:20

    Accident and Emergency:
    Two injured at mountain bike park 16:16


     News Search






    Power Search


    © 2017 New Zealand City Ltd