Lumber Exports Surge

9 January 2012

Up 26%on last year the last four months have seen lumber exports bounce strongly.

57% of the increase is to Asia but 31.5% is to some newish markets (Saudi Arabia, the Netherlands and Samoa) which is encouraging.

The 7% lift to Australia has been all about currency with volumes treading water.

June quarter sawmill production was pulled along hinting at a significant recovery.

The recent lags in the exchange rate however is likely to have blunted this early spring growth – September month export sales were back to a much more subdued 6.9% above last year.

Some interesting “new arrivals”...

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Sawmillers applaud Ministers Climate Change stand

9 January 2012

The Minister for Climate Change issues, Nick Smith has spoken from the United Nations conference in Cancun about the importance of having timber products included as part of the solution in cutting global carbon emissions

Brent Coffey, Chief Executive Officer of the New Zealand Timber Industry Federation says Mr Smith’s statement will bring some real cheer to New Zealand sawmillers.

“We thoroughly support the efforts the Minister is making in getting wood recognised as one of the real heroes in the fight against climate change.”

“For years we have been telling Government about the unique environmental credentials of wood.” Current...

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Log Export Surge Falters But Sawmillers Still Affected

9 January 2012

Recent statistics confirm the continuing huge surge in log exports, mainly to China.

They also confirm a timber processing industry which is going backwards, with exports in the six months to June 2011 being 10% lower than last year and a stagnant local market. For the months of May/June timber exports were actually 22% lower than the year before. This is the biggest and sharpest decrease we have on record.

But right now, which is the time zone we actually live in, log exports have collapsed. Almost overnight prices have fallen by up to 30% and export ports at both...

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Sawn Timber Exports Struggle

9 January 2012The four months to June 2011 show a 15% drop in sales. That contraction is very sudden and historically, very large. NZ Exports of Sawn Timber 4mths4mths% Jun-10Jun-11Change Australia68.457.6-15.79 United States62.546.1-26.24 Japan 14.910.5-29.53 China/Hong Kong53.341.8-21.58 Taiwan 10.014.1+41 Thailand9.610.7+11.46 Indonesia10.610.4-1.89 Philippines4.35.2+20.93 South Korea9.113.1+43.96 Vietnam 23.518.7-20.43 Malaysia2.73.8+40.74 New Caledonia2.83+7.14 Samoa 3.13.6+16.13 South Africa2.63.742.31 Spain 3.42.2-35.29 India 0.74+471.43 Maldives01.2-1 Total 281.5249.7-11.3 All countries310.5264.3-14.88 Annualised it means that the cashflow from exports has dropped by $138 million. At the same time, we calculate, the total cost of purchasing logs to be cut for export, would have actually increased (due to price increases) despite less production. Given that other factors of production would have been inflating at an average of 5%, the shrinkage in cash flow would have...

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