NZ Forest Products – March 2020 Monthly Market Report

The loss to business across all primary sectors is inevitable as the Corona Virus starts to get a grip on nations across the globe. For the commercial forest sector, harvest production rates have dropped 20 – 50%. This is having wide-ranging impacts on the ground. There Wood is starting to move but certainly not at levels that would generate any confidence.  

Port off-take is ahead of deliveries. For the export log export business, The market price drop and the temporary loss the china market has seen a massive slowdown in production from our forests and farming community. The domestic market still remains stable, even though many sawmill owners and factories are complaining of a lack of profit due to high log prices. At least for the moment, the local markets are getting the logs they require, and therefore, forest owners are receiving healthy returns.

As the current China “situation” stands March, consumption rates across the China Eastern seaboard are improving at around 35,000 cubic meters per day. Other information relating to China Stocks etc are unsure, to say the least so I will not comment on them at this time.

The domestic market as per last month remains stable so I will keep this month’s reports short and brief.

Keep on Hauling and looking to the future.