News | Business
25 Jun 2017 17:17
NZCity News
NZCity CalculatorReturn to NZCity

  • Start Page
  • Personalise
  • Sport
  • Weather
  • Olympic Games
  • Ski Report
  • 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

    Building fuels 23-year high for log prices

    The prices for logs used to make building frames has hit a 23-year high thanks to building demand in New Zealand's domestic market.


    New Zealand structural log prices have hit their highest level in more than two decades as local mills compete with the export market to meet demand from the domestic market.

    The price for structural S1 logs lifted to $124 a tonne this month from $123 a tonne last month and $114 a tonne at the same time last year, reaching the highest price for the grade since April 1994, according to AgriHQ's monthly survey of exporters, forest owners and saw millers.

    "The New Zealand domestic log market has slowly but consistently risen this year, and the past month was no different," analyst Reece Brick said.

    The market remained skewed in favour of sellers rather than buyers, squeezing even more returns out of harvested logs, he said.

    While strength in the local housing market is helping stoke demand, the main driver behind higher domestic prices was that export markets are draining supplies out of New Zealand, the report said.

    "Domestic mills are in a tug-of-war with export log traders for unpruned logs and are facing the prospect of further hikes in log procurement costs," Mr Brick said.

    "A large portion of mills are still paying below the export market for logs. Log suppliers are currently attempting to gauge mills' ability to absorb higher log prices.

    "All signs suggest more increases are on the cards."

    New Zealand exported 1,666,639 cubic metres of logs in April, up 3 per cent on March volumes and 21 percent higher than a year earlier. Some 72 percent of the volume was exported to China.

    The value of log exports is expected to climb to $2.66 billion this year from $2.22b last year and reach $3.14b in 2021, according to the Ministry for Primary Industries.

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


    NZN




    © 2017 NZN, NZCity


     Other Business News
     25 Jun: Kiwifruit class action headed to court
     25 Jun: Call to track building materials
     23 Jun: Hammer attack on scrap metal worker
     23 Jun: NZ dollar steady, markets look to US data
     23 Jun: NZ shares fall after 'uneventful' week
     23 Jun: NZ wool prices fall at auction
     23 Jun: Vector signs deal in Alice Springs
     Top Stories

    RUGBY RUGBY
    Hurricanes boosted by All Blacks More...


    BUSINESS BUSINESS
    Kiwifruit class action headed to court More...



     Today's News

    Living & Travel:
    Oil tanker in Pakistan overturns and ignites fire, killing more than 100 people 17:17

    Accident and Emergency:
    One seriously hurt in Otago plane crash 17:07

    Entertainment:
    Gigi Hadid has posted a sweet birthday tribute to her brother Anwar 16:57

    Netball:
    Pulse storm into netball premiership final 16:47

    Politics:
    Barclay offered to play PM recordings 16:37

    Entertainment:
    Rihanna has helped a fan overcome heartbreak 16:27

    Environment:
    Hurricanes boosted by All Blacks 16:17

    Rugby League:
    Dragons v Knights, Sharks v Sea Eagles: NRL round 16 live scores, stats and commentary 16:07

    Entertainment:
    Kanye West reportedly wants “five or six” children with Kim Kardashian West 15:57

    Entertainment:
    Leslie Jones has a “secret” boyfriend 15:27


     News Search






    Power Search


    © 2017 New Zealand City Ltd