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NZX Agrifax new log records

NZX Agrifax market analyst Ivan Luketina said prices for some logs had set new records this month and the Agrifax log price indicator had hit a record level, passing the previous record set in 2011. Source: Radio New Zealand

“Recent price rises have come from further pressure for supply in China, where on-port inventories have shrunk despite the record high rate of imports,” Luketina said.

Newly built house prices in China had increased 9.9% year-on-year, and that was the driving force behind the increased lumber consumption, he said.

As well, there had been a steady decline in log supply from Russia and, in China, domestic supply had been reduced due to a greater conservation effort.

“This means increased volumes are being sourced from the Pacific north-west and New Zealand,” Luketina said.

In New Zealand, the Auckland housing boom and the Christchurch rebuild had also driven up prices and demand for logs used for construction timber.