China's rapidly-rising demand for New Zealand logs may slow later this year, but government economists think some of the supply may be sought for the second and third-biggest customers -- South Korea and India .Russia's imposition of an export tax on logs
China's rapidly-rising demand for New Zealand logs may slow later this year, but government economists think some of the supply may be sought for the second and third-biggest customers -- South Korea and India .
Russia's imposition of an export tax on logs has increased Chinese demand for logs from other sources such as New Zealand, to the point where ports in this country are having trouble finding room to stockpile logs before they are loaded, according to Ministry of Agriculture and Forestry (MAF) analysts.
China is currently taking about half of the 2.2 to 2.5 million cubic metres of logs exported each three months, and its global imports of logs jumped 24 percent to 11 million cubic metres in the first four months of 2010, compared with the same period in 2009, the International Tropical Timber Organisation (ITTO) reports.
Part of that surge of logs was supplied by New Zealand with sendings from here reported to be up 75 percent to 1.8 million cubic metres, while log imports from Russia fell 6 percent over the same period to 4.9 million cubic metres.
MAF analysts said the growing importance of log exports -- largely driven by Chinese demand -- had been a feature of NZ forestry exports for the past 18 months.
The MAF economists said in their situation and outlook to 2014 that international log prices were predicted to rise a little, with help from improving domestic demand for sawlogs. In NZ dollar terms, export prices rose 1.5 percent in 2009 and were expected to lift a further 5 percent over the coming year.
Shipping rates appeared to be settling at a level 30 percent to 40 percent lower than their peak in June 2008.
