{"id":10214,"date":"2023-08-30T14:06:49","date_gmt":"2023-08-30T04:06:49","guid":{"rendered":"https:\/\/woodcentral.com.au\/?p=10214"},"modified":"2024-10-21T20:27:51","modified_gmt":"2024-10-21T10:27:51","slug":"australia-nz-log-export-prices-six-year-low-amid-slowdown","status":"publish","type":"post","link":"https:\/\/woodcentral.com.au\/australia-nz-log-export-prices-six-year-low-amid-slowdown\/","title":{"rendered":"Australia &#038; NZ Log Export Prices: Six-Year Low Amid Slowdown"},"content":{"rendered":"\n<p>Australia and New Zealand&#8217;s export log prices fell 17.5% in June 2023,&nbsp;<a target=\"_blank\" href=\"https:\/\/industryedge.com.au\/regional-log-price-index-fell-17-5-in-june\/\" rel=\"noreferrer noopener\">with IndustryEdge&#8217;s Wood Market Edge reporting that prices are now 28.2% lower than the index starting point in January 2017.<\/a><\/p>\n\n\n\n<p>IndustryEdge reports that the weighted average New Zealand price fell 13.3% for the month, whilst the Australian index dropped slightly (0.2%) in the softening market.<\/p>\n\n\n\n<p>Where New Zealand has suffered from a deteriorating Chinese market, 98% of Australian logs are now exported to India &#8211; albeit price-sensitive, a much more stable market.<\/p>\n\n\n\n<p>That figure is up from 95% in May and 92% in April, with the latest report coinciding with New Zealand&#8217;s largest-ever trade delegation to India.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Talking trade agreements with a panel representing NZ and India trade experts at the Confederation of Indian Industry. They are keen on resilient supply chains via IPEF. <a href=\"https:\/\/twitter.com\/hashtag\/inzeal?src=hash&amp;ref_src=twsrc%5Etfw\">#inzeal<\/a> <a href=\"https:\/\/twitter.com\/TradeWorksNZ?ref_src=twsrc%5Etfw\">@TradeWorksNZ<\/a> <a href=\"https:\/\/twitter.com\/inzbc?ref_src=twsrc%5Etfw\">@inzbc<\/a> <a href=\"https:\/\/twitter.com\/Fonterra?ref_src=twsrc%5Etfw\">@Fonterra<\/a> @exportnz <a href=\"https:\/\/t.co\/8eEVCVtFk1\">pic.twitter.com\/8eEVCVtFk1<\/a><\/p>&mdash; Catherine Beard (@BusNZ_Advocacy) <a href=\"https:\/\/twitter.com\/BusNZ_Advocacy\/status\/1696127703362232604?ref_src=twsrc%5Etfw\">August 28, 2023<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p><a href=\"https:\/\/woodcentral.com.au\/nz-targets-india-for-log-exports-to-reduce-china-trade-reliance\/\" target=\"_blank\" rel=\"noreferrer noopener\">Last week<\/a>, Wood Central reported that forest products were identified as one of seven priority areas by the Indian government before the delegation left for India.<\/p>\n\n\n\n<p>&#8220;For all that export volumes spiked in April and May, the price was the victim,&#8221;&nbsp;<a target=\"_blank\" href=\"https:\/\/woodcentral.com.au\/australian-softwood-prices-drop-30-exporters-eye-china-trade\/\" rel=\"noreferrer noopener\">IndustryEdge said earlier this month.<\/a><\/p>\n\n\n\n<p>&#8220;Trade to China may not always have been satisfactory, but the occasional slumps in export prices to India are also nothing to write home about.&#8221;\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"522\" height=\"458\" src=\"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/08\/Picture1-11.png\" alt=\"\" class=\"wp-image-10216\" srcset=\"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/08\/Picture1-11.png 522w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/08\/Picture1-11-300x263.png 300w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/08\/Picture1-11-479x420.png 479w\" sizes=\"auto, (max-width: 522px) 100vw, 522px\" \/><figcaption class=\"wp-element-caption\">IndustryEdge\u2019s Australian and New Zealand Log Price Index: Jan \u201921 \u2013 June \u201923 (INDEX). Source: ABS, Statistics NZ, RBA, RBNZ and IndustryEdge<br><br><\/figcaption><\/figure>\n\n\n\n<h6 class=\"wp-block-heading\">New Zealand Export Data<\/h6>\n\n\n\n<p>New Zealand is among China&#8217;s largest import markets for logs, with more than 55% of New Zealand&#8217;s export market going through China.<\/p>\n\n\n\n<p>IndustryEdge reports that the total exports for the 2022\/23 financial year were 20.890 million cubic metres, with an average export price of NZDFob163.10\/m3.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"530\" height=\"435\" src=\"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/08\/Picture6-3.png\" alt=\"\" class=\"wp-image-10215\" srcset=\"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/08\/Picture6-3.png 530w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/08\/Picture6-3-300x246.png 300w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/08\/Picture6-3-512x420.png 512w\" sizes=\"auto, (max-width: 530px) 100vw, 530px\" \/><figcaption class=\"wp-element-caption\">New Zealand Softwood Log Exports by Size: Jan \u201921 \u2013 Jun \u201823 (\u2018000 m3 and NZDFob\/m3). Source: Statistics NZ and IndustryEdge.<br><\/figcaption><\/figure>\n\n\n\n<p>The weighted average price was 2.1% lower for the year than the prior year but has deteriorated for the last four months.<\/p>\n\n\n\n<p>However, IndustryEdge reported that &#8220;a new symmetry has been reached with New Zealand softwood log export prices.&#8221;&nbsp;<\/p>\n\n\n\n<p>Since the end of 2022, the weighted average price for softwood log exports has been largely the same, regardless of dimension.<\/p>\n\n\n\n<p>IndustryEdge has provided a full breakdown of the\u00a0<a href=\"https:\/\/industryedge.com.au\/regional-log-price-index-fell-17-5-in-june\/\">month-to-month pricing by dimension size on its website.<\/a><\/p>\n\n\n\n<h6 class=\"wp-block-heading\">Australian Export Data<\/h6>\n\n\n\n<p>IndustryEdge reports that Australian softwood log exports for June were 121,900 cubic metres with a weighted price of AUDFob129.92\/m3 &#8211;\u00a0<a href=\"https:\/\/woodcentral.com.au\/australian-softwood-prices-drop-30-exporters-eye-china-trade\/\" target=\"_blank\" rel=\"noreferrer noopener\">albeit with May exports revised downward after adjustment.<\/a><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"834\" src=\"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/08\/Picture2-6-1024x834-1.png\" alt=\"\" class=\"wp-image-10217\" srcset=\"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/08\/Picture2-6-1024x834-1.png 1024w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/08\/Picture2-6-1024x834-1-600x489.png 600w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/08\/Picture2-6-1024x834-1-300x244.png 300w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/08\/Picture2-6-1024x834-1-768x626.png 768w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/08\/Picture2-6-1024x834-1-696x567.png 696w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/08\/Picture2-6-1024x834-1-516x420.png 516w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Australian Softwood Log Exports by Country: Jan \u201917 \u2013 Jun \u201823 (m3). Source: ABS and IndustryEdge<br><br><\/figcaption><\/figure>\n\n\n\n<p>It reports that Australia&#8217;s log export prices have been highly volatile, partly due to &#8220;small than normal trade and one in which there are market and global economic challenges.&#8221;<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"271\" src=\"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/08\/image-14-1024x271.png\" alt=\"\" class=\"wp-image-10218\" srcset=\"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/08\/image-14-1024x271.png 1024w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/08\/image-14-600x159.png 600w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/08\/image-14-300x79.png 300w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/08\/image-14-768x203.png 768w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/08\/image-14-696x184.png 696w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/08\/image-14-1068x282.png 1068w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/08\/image-14-1320x349.png 1320w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/08\/image-14.png 1404w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Underscoring price challenges, IndustryEdge reports that &#8220;the lowest monthly price was recorded in February 2023 (AUDFob114\/m3) and the highest just one month later at AUDFob177\/m3).&#8221;<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"530\" height=\"421\" src=\"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/08\/Picture3-4.png\" alt=\"\" class=\"wp-image-10219\" srcset=\"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/08\/Picture3-4.png 530w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/08\/Picture3-4-300x238.png 300w\" sizes=\"auto, (max-width: 530px) 100vw, 530px\" \/><figcaption class=\"wp-element-caption\">Australian Softwood Log Exports by Country: Jul \u201922 \u2013 Jun \u201823 (m3). Source: ABS and IndustryEdge<br><br><\/figcaption><\/figure>\n\n\n\n<p>Over the year to June 2023, Australia&#8217;s total exports of softwood logs were 35% lower than the prior year, totalling just 0.465 million cubic metres.<\/p>\n\n\n\n<p>For export, softwood logs are differentiated as larger or smaller than 15 cm in diameter.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"525\" height=\"452\" src=\"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/08\/Picture4-3-1.png\" alt=\"\" class=\"wp-image-10220\" srcset=\"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/08\/Picture4-3-1.png 525w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/08\/Picture4-3-1-300x258.png 300w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/08\/Picture4-3-1-488x420.png 488w\" sizes=\"auto, (max-width: 525px) 100vw, 525px\" \/><figcaption class=\"wp-element-caption\">Australian Softwood Log Exports by Size: Jan \u201921 \u2013 Jun \u201823 (\u2018000 m3 and AUDFob\/m3). Source: ABS and IndustryEdge<br><br><\/figcaption><\/figure>\n\n\n\n<p>Larger logs dominate Australia&#8217;s exports, following a shift away from smaller diameter (&lt;15 cm) logs in 2021.&nbsp;<\/p>\n\n\n\n<p>Over the year ended June 2023, exports of the smaller logs totalled 0.047 million m3 or 10.1% of the total, while shipments of larger logs totalled 0.419 million m3 (89.9%).<\/p>\n\n\n\n<p>&#8220;Differentiation of exports based on their diameter also allows for some price analysis,&#8221;&nbsp;<a target=\"_blank\" href=\"https:\/\/industryedge.com.au\/regional-log-price-index-fell-17-5-in-june\/\" rel=\"noreferrer noopener\">according to the media release from IndustryEdge.<\/a><\/p>\n\n\n\n<p>Export prices for the smaller-sized logs have remained stable, moving through a narrow range, while the average price of the larger-diameter logs has fluctuated.<\/p>\n\n\n\n<p>&#8220;In June, exports of the smaller logs were recorded at AUDFob106.77\/m3, and the larger diameter logs were recorded at AUDFob136.24\/m3.&#8221;<\/p>\n\n\n\n<h6 class=\"wp-block-heading\">Hardwood Exports<\/h6>\n\n\n\n<p>Malaysia remains Australia&#8217;s major hardwood log export market.\u00a0<\/p>\n\n\n\n<p>Examined on a full-year basis, across the year to June 2023, hardwood log exports were down 24.6%, totalling 281,037 cubic metres.<\/p>\n\n\n\n<p>IndustryEdge has provided a full breakdown of the&nbsp;<a target=\"_blank\" href=\"https:\/\/industryedge.com.au\/logging-on-australian-log-exports-exploded-in-april-ahead-of-china-announcement\/\" rel=\"noreferrer noopener\">state-based exports on its website.<\/a><\/p>\n\n\n\n<p>Across the year ended June 2023, exports from Tasmania dominated, accounting for 69% of all Australian exports.&nbsp;<\/p>\n\n\n\n<p>Invariably, Tasmania ships significant volumes of hardwood logs to Malaysia.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>This analysis was first published in Wood Market Edge online in August 2023.\u00a0IndustryEdge provides exclusive analysis and access to market information, publications, and market and product guides.\u00a0<a href=\"https:\/\/industryedge.com.au\/wood-market-edge\/\" target=\"_blank\" rel=\"noreferrer noopener\">Wood Market Edge online subscribers<\/a>\u00a0have 24\/7 access to a large and ever-growing library of data series and analytical reports, updated constantly.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Australia and New Zealand&#8217;s export log prices fell 17.5% in June 2023,&nbsp;with IndustryEdge&#8217;s Wood Market Edge reporting that prices are now 28.2% lower than the index starting point in January 2017. IndustryEdge reports that the weighted average New Zealand price fell 13.3% for the month, whilst the Australian index dropped slightly (0.2%) in the softening [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":10222,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wpscppro_dont_share_socialmedia":false,"_wpscppro_custom_social_share_image":0,"_facebook_share_type":"","_twitter_share_type":"","_linkedin_share_type":"","_pinterest_share_type":"","_linkedin_share_type_page":"","_instagram_share_type":"","_medium_share_type":"","_threads_share_type":"","_google_business_share_type":"","_selected_social_profile":[],"_wpsp_enable_custom_social_template":false,"_wpsp_social_scheduling":{"enabled":false,"datetime":null,"platforms":[],"status":"template_only","dateOption":"today","timeOption":"now","customDays":"","customHours":"","customDate":"","customTime":"","schedulingType":"absolute"},"_wpsp_active_default_template":true},"categories":[52,50,46,114],"tags":[],"ppma_author":[69],"class_list":{"0":"post-10214","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-asia","8":"category-australia","9":"category-industry","10":"category-new-zealand"},"authors":[{"term_id":69,"user_id":1,"is_guest":0,"slug":"woodcentral","display_name":"Wood Central","avatar_url":{"url":"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/02\/MASTER-BRAND-MARK_POS_RGB-e1676449549955.jpg","url2x":"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/02\/MASTER-BRAND-MARK_POS_RGB-e1676449549955.jpg"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":"","8":""}],"_links":{"self":[{"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/posts\/10214","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/comments?post=10214"}],"version-history":[{"count":1,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/posts\/10214\/revisions"}],"predecessor-version":[{"id":10223,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/posts\/10214\/revisions\/10223"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/media\/10222"}],"wp:attachment":[{"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/media?parent=10214"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/categories?post=10214"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/tags?post=10214"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/ppma_author?post=10214"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}