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New Zealand timber prices set to rise
28/12/2009
Timber prices in New Zealand are tipped to rise by 10 per cent in February this coming year.
The price hike is thought to be have been caused by an increase in log exports over recent times, alongside a general shortage in supply, according to the Timber Industry Federation.
The Federation’s latest news letter claimed that timber shortages are a problem across several product lines. This is occurring despite the country’s building slump and falling sales to the domestic market. Production of sawn timber was down by 19 per cent in the year to June. This combined with the rise in the international market for New Zealand pine has resulted in shortages and high prices.
The Federation says that the high level of logging by Chinese firms based in New Zealand was part of the reason behind the high prices. It claims that 46 per cent of New Zealand’s timber exports were sent to Asia six years ago. This has now increased to 80 per cent and is still rising. This is due to the vast and quick development of the Chinese market, with a huge demand forming for sustainable wood.
The price hike is thought to be have been caused by an increase in log exports over recent times, alongside a general shortage in supply, according to the Timber Industry Federation.
The Federation’s latest news letter claimed that timber shortages are a problem across several product lines. This is occurring despite the country’s building slump and falling sales to the domestic market. Production of sawn timber was down by 19 per cent in the year to June. This combined with the rise in the international market for New Zealand pine has resulted in shortages and high prices.
The Federation says that the high level of logging by Chinese firms based in New Zealand was part of the reason behind the high prices. It claims that 46 per cent of New Zealand’s timber exports were sent to Asia six years ago. This has now increased to 80 per cent and is still rising. This is due to the vast and quick development of the Chinese market, with a huge demand forming for sustainable wood.
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