NZ Timber Markets Remain Subdued

23 April 2012

Timber sales to the domestic market for the September quarter were a staggering 29% down on the year before confirming our market feedback. The June quarter was down 21%.

Sawmill production in the September quarter fell 9.5% over the year before.

 

Timber sales to the domestic market for the September quarter were a staggering 29% down on the year before confirming our market feedback. The June quarter was down 21%.

Sawmill production in the September quarter fell 9.5% over the year before.

The ratio of stocks to production remained at about the same level indicating an encouraging fine tuning of production to market demand (in turn driven by tight liquidity).

For the year to September production was down 6.5%.

 All major markets suffered price decreases.

 The export price to Australia while getting a boost due to devaluation in early 2010 has since fallen by 12% from that peak to the Sept quarter 2011.

 In 2 years the price to the US has fallen 16% and over the last year the price to China is down a huge 26%.

 The price to Thailand is off 16%.

 Overall sawn timber export prices fell 16% for the year ended September.

 

Timber Sales to the  New Zealand Market (m3)

 

 

 

2008

2009    

  2010   

 

Mar

Jun

Sept

Dec

Mar

Jun

Sep

Dec

Mar

Jun

Sep

Dec

New Zealand production

858

920

967

817

788

872

993

965

959

1099

1112

924

Less Exports

375

435

483

486

320

500

519

520

377

527

521

599

Balance

483

485

484

331

468

372

474

445

582

572

591

325

Change in Stock at mills

-33

70

-45

64

-10

-91

-34

65

-80

37

64

-86

Balance

450

555

439

395

458

281

440

510

502

609

655

239

Imports

11

10

8

9

8

9

8

7

9

7

10

9

Total sales to domestic market

461

565

447

404

464

289

448

517

511

616

665

248