NZ Wood Exports to China Rise Amid Elevated Freight Costs
New Zealand's wood exports to China continued to grow in August, with sales up NZ$40 million from July. The total export value to China rose by $191 million, or 16%, according to Stats NZ.
Despite the increase, New Zealand exporters face challenges, including elevated ocean freight costs and a strengthened New Zealand dollar against the US dollar. Scott Downs, Head of Sales and Key Clients at Stand Forestry, warned that these factors will put downward pressure on AWG returns.
The yuan gained 6.4% against the US dollar in August, increasing China's purchasing power for imported logs. A-grade New Zealand log prices firmed by a few dollars to $125-$130 per JASm³ in China, while softwood log inventories dipped slightly but remained stable.
China's property developers broke ground on 24% fewer new floor spaces in the seven months to July compared to the same period last year. This decline is expected to impact demand for imported logs. Downs also noted that Beijing's five-year forestry plan aims to increase forest cover and total forest stock by 2030, which could reduce China's reliance on imported softwood logs.