In December, New Zealand's export log prices fell due to the impact of exchange rates.
In December 2022, the average export log (AWG) price across New Zealand ports has fallen by around NZ$2/JASm3. As the market price of exports to China has remained stable recently, the price of exported logs fell this time, mainly due to the strengthening of the exchange rate of the New Zealand dollar against the US dollar.
The New Zealand dollar strengthened significantly in November, which affected New Zealand AWG log prices in December. NZD/USD remains volatile, but the underlying uptrend has stalled over the past few weeks.
The PF Olsen Log Price Index fell slightly in December, down $1 from the previous month to $119, $4 below the two-year and five-year averages.
At the end of 2022, many factories in New Zealand are on extended year-end holidays compared to past years. In previous years, most forest owners would arrange felling production during this period. This means New Zealand's harvest will be lower than normal.
According to statistics, the current domestic softwood log inventory is stable at about 3.4 million cubic meters, and the average daily shipment volume of ports remains at around 60,000 cubic meters.
It is understood that the current log inventory in China remains stable. Although the market in China will still be volatile due to the adjustment of epidemic management measures and the upcoming Lunar New Year, log consumption is expected to maintain growth in the first half of 2023.