19 Dec 2012

Log prices double

7:03 am on 19 December 2012

The price of export logs has doubled in the past month after a long period during which there was little price movement.

Ivan Luketina, an analyst with NZX Agrifax, says A grade log prices in China have risen US$5 per Japanese Agricultural Standard (JAS) metre in just one month, after trading at US$5 a metre throughout 2012.

The JAS measurement takes into account only the usable part of the log.

Mr Luketina says the price rise is because China has revived its interest in logs to bring its inventories up to an acceptable level.

New Zealand is benefiting because log supplies from Russia and Canada have dropped considerably.

Mr Luketina says log export prospects for 2013 are positive, with Chinese demand expected to increase.