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Customs data shows that in the first quarter of this year, due to the adverse weather conditions in northern New Zealand, the average export price of logs increased by around 2 to 39 US dollars. However, according to customs data, the export prices of New Zealand logs are plummeting, even reaching their lowest point in nearly a year.

Customs data shows that the export price of New Zealand logs in April was per JASm ³ Falling by 20-25 US dollars, continuing the downward trend in May, per JASm ³ Falling by 22 US dollars. Among them, the sales price of New Zealand A-grade pine in China's CFR logs is per JASm ³ Plummeted to $108- $115. This number is already below the price standard that can achieve profitability - according to New Zealand timber traders, the export price of New Zealand logs needs to be maintained above 120 New Zealand to have profit potential.

In this regard, New Zealand believes that China, as the main destination for New Zealand's log exports, has not achieved the expected growth in construction activities despite the stable softwood inventory and log demand in the Chinese market, which has more or less affected the export prices of New Zealand logs.

In addition, as the northern hemisphere enters a hot summer, the construction market activity in China will decrease from June to August. This means that the likelihood of a significant increase in China's demand for New Zealand log imports in the near future is not high.

In addition to facing the demand issue in the Chinese market, the supply of New Zealand log species is also facing new challenges in the Chinese market.

As China increases the planting of artificial forests and has achieved certain results, the supply of masson pine and northern poplar trees in the southern and central regions has increased. Moreover, the average price per cubic meter of these domestically produced logs is much lower than those imported from abroad. Therefore, there are advantages in both supply and price, which are more attractive to domestic buyers, further affecting the export situation of New Zealand logs.

On the other hand, on May 18th, China announced the resumption of timber trade with Australia. As a major exporter of logs from the southern hemisphere, China imported 4.83 million cubic meters of logs from Australia in 2019 and 4.53 million cubic meters in 2020, respectively. During the same period, China imported 17.73 million cubic meters and 16.22 million cubic meters of logs from New Zealand.

During 2021, as the logs between China and Australia were approaching zero, New Zealand's transportation of logs to China surged to 20.47 million cubic meters, an increase of 26.2% year-on-year; The amount reached 21.68469 billion, a year-on-year increase of 65.8%.

This also indirectly indicates that Australia's return to China's log market may result in New Zealand taking a portion of its market share from our country. However, based on the number of imports from these two countries in previous years, Australia can only share a small portion. And in the early stages of the recovery of log trade between China and Australia, it is expected that the import data will be lower than in previous years.

Looking back at this year's import data. According to customs data, from January to April this year, China imported 4.86 million cubic meters of logs from New Zealand, a year-on-year increase of 3.7%. Customs data shows that overall, there is still a certain demand for New Zealand's log supply in the Chinese market. But currently, China's demand for pine wood imports has slowed down, and it is expected that the import price of New Zealand's radial pine may be lowered again.