LATEST: AU/NZ Softwood Log Export Price Index Lifted 14.4% in March: IndustryEdge

image_pdfConvert to PDF

The Australian and New Zealand regional Softwood Log Price Index lifted 14.4% in March, despite deteriorating prices for Australian exports.

The combined weighted index, based in US dollars, rose entirely due to a 16.1% lift in New Zealand’s export price according to IndustryEdge’s Softwood Log Export Price Index. The index – part of the Wood Market Edge online service – shows Australian weighted average export prices fell 11.8% in March, but on much lighter volumes than exported from New Zealand. 

Subscribers can click here to login and review all the latest data and analysis. The data was received by IndustryEdge on Thursday 5th May and was loaded to Wood Market Edge online within twelve hours, for subscribers to interrogate and download as required.

As the chart from Wood Market Edge online shows, the weighted average price is headed back toward record territory, amidst supply chain disruptions and shortly after having come off its all-time highs in mid 2021.

More than 90% of softwood log exports from the Australian and New Zealand cohort are from New Zealand. The vast majority of that supply is shipped to mainland China, the main driver of softwood log prices. Subscribers can download the detailed log export data, available at a port-to-port level, to gain deeper insights into the nature of the trades.

Since late 2020 when China banned imports of Australian logs, the weighted average price of Australian supply headed lower and has subsequently plunged. However, as the chart below shows, the decline in price for Australian supply was already in evidence and was behaving erratically, at least by comparison to the New Zealand supply. The question posed by one Australian exporter in discussions last week was whether the pre-ban volatility was a ‘market stress’ test by Chinese authorities as they prepared for the bans. We will probably never know, but analysis of the data at a ‘port-to-port’ level indicates there were some large movements in key receiving ports from one month to the next.

IndustryEdge’s Australian & New Zealand Softwood Log Export Price Index is updated every month, supporting business-level analysis and providing insights into trade opportunities and challenges.

To learn more about the support available for your business from the Wood Market Edge online service, contact IndustryEdge.

image_pdfConvert to PDF

Free Stuff

Sign up right now for instant access to market information, samples of our publications, various market and product guides and analysis and view some of our forum presentations. You will also be regularly updated via our blog.

> sign up now

Subscribe

Receive special offers and news.

Contact Us

IndustryEdge Pty Ltd
PO Box 7596
Geelong West, Victoria 3218

Ph +61 (0) 3 5229 2470
Fx +61 (0) 3 5229 0034
Em info@industryedge.com.au