New Zealand's log export prices up sharply in February

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AgriHQ/Fordaq
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The export prices for New Zealand logs increased for every grade. The average wharf gate price for unpruned A-grade logs advanced to $128 a tonne in February 2017.

This is the highest level since AgriHQ records began in late 2008, while prices for various K-grades haven't been this high since the early- mid 1990s. The $166 a tonne recorded for export pruned logs was firmer than any of the previous six months, although lower than the first half of 2016

Moreover, the shipping rates to the country's main export destinations decreased. The rate to New Zealand's largest export market, China, went down 1%, while South Korea and India decreased 3%.

Log exports from New Zealand reached 15,913,512 m3 in 2016, 9% more than in the previous year. Out of this, 69% went to China, while other 17% of the logs reached South Korea, AgriHQ's survey of exporters, forest owners and sawmillers reported.

The prices for domestic roundwood logs reached price record in February due to the increased demand from construction and horticulture industries. Thus, the  average price for roundwood logs rose to $90 a tonne in February, up $5 from January's average price and at the highest level since AgriHQ began collecting the data in early 2002.

"The roundwood sector is currently in a period where interest is at unprecedented levels. Demand for poles has been especially strong, for the likes of foundations and retaining walls. Multiple strands of the horticulture and viticulture industries have also maintained their presence in the roundwood markets as well. The sheer volume of activity has meant some mills have battled to fill orders in recent months," AgriHQ analyst Reece Brick said in the monthly forestry market report.

The record net migration and low interest rates spured demand for additional housing. Also, the booming horticulture industry has helped the investment activity in that sector, causing stoke demand for roundwood.

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Peter Mu
russia timber export have similar situation "Log exports from New Zealand reached 15,913,512 m3 in 2016, 9% more than in the previous year. Out of this, 69% went to China, while other 17% of the logs reached South Korea"