News | Business
24 Mar 2017 11:02
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
     24 Mar: Struggling Intueri leaving Aust early
     24 Mar: Kiwi steady as Trump faces confidence test
     23 Mar: Kiwi little changed after RBNZ stands pat
     23 Mar: NZ shares rise while Fletcher drops again
     23 Mar: Vodafone selected for GCSB's pilot
     23 Mar: TeamTalk valuation 'lacks credibility'
     23 Mar: Pumpkin Patch brand, IP sold to Australia
     Top Stories

    RUGBY RUGBY
    Brumbies try to boost not so Super NZ run More...


    BUSINESS BUSINESS
    Struggling Intueri leaving Aust early More...



     Today's News

    Entertainment:
    Kate Hudson is reportedly dating musician Danny Fujikawa 10:49

    Politics:
    London attack: People return to Westminster Bridge to remember victims, stand for democracy 10:47

    Politics:
    Labour and Greens announce budget rules 10:47

    Business:
    Struggling Intueri leaving Aust early 10:27

    Entertainment:
    Kim Kardashian West is "still vulnerable" after her Paris robbery 10:19

    Business:
    Kiwi steady as Trump faces confidence test 10:07

    Entertainment:
    Ryan Reynolds has joked he’s in the “dog house” after he claimed Jake Gyllenhaal was a better cook than his wife 9:49

    Cricket:
    Trent Boult ruled out of third Test 9:27

    Entertainment:
    Robin Williams' widow Susan Schneider Williams wants her late husband's death to show other sufferers of dementia that they're not alone 9:19

    Law and Order:
    Shot in backside after salt 'drug' deal 8:57


     News Search






    Power Search


    © 2017 New Zealand City Ltd