Timber Troubles: New Zealand’s Log Exports to China Face a Rocky Road Ahead

"New Zealand Log Export Industry Confronts Post-Christmas Challenges Amidst Currency Fluctuations, Soaring Shipping Costs, and Chinese Demand Slump"

The log export industry in New Zealand is currently facing several challenges following the Christmas season. These challenges include fluctuating foreign exchange rates, increasing shipping costs, and a temporary decrease in Chinese demand during the holiday season. As a result, export prices in January have seen a slight decrease compared to December. This decrease can be attributed to the impact of rising shipping and foreign exchange costs on profit margins. In particular, the exchange rate between the US and New Zealand has risen by approximately 4 cents over the past 10 weeks, which has affected profitability by around $3 per cubic meter for every cent increase.

During the month of December, there was a significant price spread among exporters, with prices ranging from…

John O Mahony

John O Mahony

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