Thursday, September 09, 2010
Vital Statistics
23 Aug 2007
Strong Kiwi dollar concerns forestry exporters
David Norman
A particularly strong NZ$ since December last year, rising shipping costs and flat Asian log prices have exporters worried. A downturn in the US housing market is also of concern, considering that it accounts for around 25% of New Zealand’s lumber exports. Nevertheless, the total value of log, timber and pulp exports for the year ended April 2007 was $1.83bn, up 22.3% over the April 2006 year’s figures.
The recent further appreciation of the NZ$ against the US$ to a 25-year high may cause additional consternation among exporters. Nevertheless, the US market for forestry products has been remarkably resilient despite the strong NZ$ and a weak US housing market over the last several months.
Logs
Total export value was up 44.2% in the April 2007 year over the year before. Although prices were off the boil somewhat in April, at $113 per cubic metre, they remained well up on year-earlier prices, by 19.7%. And even with lower prices per cubic metre, volumes are up significantly, (20.4%), ensuring higher export receipts.
Timber
The picture for timber, while not as spectacular as that for logs, is still impressive, with a continuing recovery. The total value of exports was up 14.3% in the April year, to $667m. This was off a high of 18.6% value growth in the February year. Prices have recovered to near the $400 per cubic metre mark after peaking at $403 in January and are up 5.9% year-on-year. Volumes are up by 7.9%.
Pulp
The value of exports was up 13.2% on the year before, at $507m. As with timber, pulp prices reached a peak in January before falling substantially in February. Since then, prices have risen close to January levels. In April, pulp cost $884 per cubic metre. Prices in the April 2007 year averaged 33.2% more than in the April 2006 year. However, volumes have declined significantly (-15%) over the same period.
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