Roger Dickie

rss

News


Log prices up after 3 months of falls
The export market for New Zealand forestry products is stabilising.

It has been helped by the weakening kiwi dollar, reduced inventories in China and increased domestic housing demand in the US, say industry analysts.

Meanwhile, domestic demand was strong, fuelled by buoyant housing markets in Auckland, growth in the Tauranga housing market, and the continuing Canterbury rebuild, they said.

Export log prices rose in June after three months of significant falls, said Peter Weblin, Rotorua-based chief marketing manager for forestry management company PF Olsen.

Most at-wharf-gate dollar June pricing appeared to be based on A-grade at about US$100 ($147), up from a low of US$95 in May, he said. Log stocks in China continued to fall steadily through May, reducing by nearly 200,000cu m to an estimated 3.87 million cubic metres. That was down from the peak of 4.27 million cu m at the start of April.

But Mr Weblin said stocks needed to get under 3 million cu m to bring confidence back, while the main driver of log imports - the Chinese construction market - was still slow.


The dollar was definitely helping, especially for processors meeting strong demand for processed clear boards in the US and Europe.

"The depreciating kiwi really helps the finished product guys because it works on a much bigger value."

Dennis Neilson, director /founder of Rotorua-based forestry consultants DANA, said despite the doom and gloom stories about the Chinese economy beginning to melt down, New Zealand was again the biggest exporter into China, with about 1 million cu m of logs each month. "That is as much as last year," said Mr Neilson. "And while prices have declined for some grades, they've held up for others. Our exchange rate and low shipping costs means the net return to many forest owners - particularly in the Central North Island within reasonable transport distance of Port of Tauranga - remains attractive, so harvesting continues."

Mr Neilson said there were a number of factors including increased US housing starts, which were slowing US exports to China, and attracting imports from Canada.

Categories

Forestry Investment

With the world population increasing at an alarming rate, global demand for timber products is also increasing. However the global supply of millable timber is falling. Investing in New Zealand forestry is a secure and sustainable way to grow your wealth.
New Zealand’s competitive advantage is we have some of the world’s fastest growth rates with forests growing 750 tonnes of harvestable logs per hectare in just 26 years.
read more…

Overseas Investors

Roger Dickie New Zealand Limited specialises in finding, securing and developing the best farm and forest opportunities on behalf of investors and overseas clients.
Our role is to act as independent agent for our clients, we find them the best farms and forest properties that are available and provide management and administration services. All investments are backed by the security of land ownership.
read more…

Investment Options

Email: invest@rogerdickie.co.nz

New Zealand: 0800 FOREST (0800 367 378)
or +64 6 3465 329

USA/Canada: 1877 330 3079

UK: 0800 0809 12628

Skype: WDICKIE

Dairy Farm Investments

Blessed with the ideal climate, New Zealand is perfect for pastoral farming, growing healthy livestock for the production of dairy products and meat.
New Zealand farmers are among the most efficient in the world and there are no Government subsidies for agriculture. Our grass based animal production systems, combined with the use of world leading technology, minimises labour inputs and generates maximum productivity.
read more…