News | Business
29 Apr 2017 7:51
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
     28 Apr: ACCC drops action against Fonterra
     28 Apr: Kaikoura quake to shave 0.1pc from GDP
     28 Apr: NZ business confidence still upbeat
     28 Apr: Exports rise 11pc to 2-year high in March
     28 Apr: Any more surprises in the budget?
     28 Apr: NZ wool volumes still high at auction
     28 Apr: SkyCity posts dip in third-quarter revenue
     Top Stories

    RUGBY RUGBY
    Chiefs confident replacements can step up More...


    BUSINESS BUSINESS
    ACCC drops action against Fonterra More...



     Today's News

    Environment:
    Climate change march in Christchurch 7:36

    Rugby League:
    Rabbitohs booed by their own in Manly loss 7:26

    International:
    Donald Trump: Why do we care about the US President's first 100 days? 7:16

    Environment:
    Little spotted kiwi move to Auckland 7:16

    Accident and Emergency:
    Slip clearing in Manawatu Gorge continues 7:06

    Rugby League:
    Thurston missed as Eels beat Cowboys 6:26

    Soccer:
    The man who gets Sydney FC ready to wiggle 21:56

    Rugby League:
    Broncos' Milford named for Samoa Test 21:16

    Law and Order:
    Boy found safe in Newcastle after being taken from Brisbane's Lady Cilento Hospital 21:06

    Law and Order:
    Private funeral for Verity McLean 19:26


     News Search






    Power Search


    © 2017 New Zealand City Ltd