WELLINGTON: New Zealand export log prices rose from a three-year low this month, helped by a decline in the kiwi dollar and increased demand in China, the country’s largest market.
The average wharf gate price for New Zealand A-grade logs increased to $86 a tonne from $83 a tonne in May, snapping three months of declines, according to AgriHQ’s monthly survey of exporters, forest owners and sawmillers. The AgriHQ Log Price Indicator, which measures average log prices weighted by grade, rose to 89.38 from 88.40 last month.
The prices for New Zealand export logs have picked up from their lows as inventories on Chinese ports fell below 4 million cubic metres, cementing optimism that last month represented the bottom of the market cycle. The price for New Zealand A-grade logs delivered to China increased to US$101/JAS from US$99/JAS last month, which was the lowest level since AgriHQ started collecting the data in 2012.
A decline in the New Zealand dollar, which has dropped 8.9 percent since the start of May, had aided export log prices, as have low shipping rates, AgriHQ said.
