NZ pulp exports rise as prices stumble

New Zealand’s pulp exports rose 7.2% year-ended November 2019, at the same time as average export prices fell more than 32% in New Zealand dollar terms. Exports for the year totalled 960,830 tonnes, with the average price in November falling to NZDFob662/t, or NZD313/t lower than a year earlier.

Given the continual fall in global pulp prices, there is little surprise that pulp prices have fallen. In US dollar terms, the currency in which most pulp transactions are conducted, the average export price in November 2019 was USDFob424/t, almost 36% lower than a year earlier.

Although the magnitude of the price declines is to be expected, the actual USD prices are relatively low, compared with Chinese prices for the main chemical pulp grades. This has more to do with the grades of pulp being exported, than it does with exchange rates.

What is perhaps more surprising is that against the backdrop of declining prices, export volumes increased.

The chart below provides the details since January 2015, detailing New Zealand’s pulp exports by port and the average export price.

 

New Zealand’s Pulp Exports by Port: Jan ’15 – Nov ’19 (tpm & NZDFob/t)

Source: Statistics NZ

* Weighted Average = average export price measured in NZDFob/t

 

 

YE Nov ’18

YE Nov ’19

% Change

Auckland

12,017

8

-99.9%

Christchurch/Lyttelton

1,955

1,790

-8.4%

Napier

446,386

468,064

4.9%

Tauranga

435,457

490,120

12.6%

Total

895,815

959,982

7.2%

 

This is an edited extract of analysis that first appeared in Edition 172 of Pulp & Paper Edge in January 2020

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