Value of New Zealand's lumber exports to China drops 19% to NZ$44.7M in four months to Sept. 30 on slowing construction, increased competition from rival producing countries
November 29, 2011
– New Zealand's exports of sawn timber to China lost ground for several reasons in the four months ended Sept. 30, including competition with rivals such as Canada, and efforts by China to slow down its economy, BusinessDesk reported Nov. 29.
Data from the New Zealand Timber Industry Federation shows a drop in New Zealand's total lumber exports to NZ$264 million in the period (US$201 million), a drop of 16%, according to the article carried in Scoop Business. Exports to China slipped 19% to NZ$44.7 million.
Construction in both China and New Zealand is sluggish, and low demand for lumber for concrete forms has resulted in excess capacity at China's mills, said federation chief Brent Coffey.
In New Zealand, demand for property is low and rebuilding the quake-damaged city of Christchurch is slow. New Zealand companies such as building materials manufacturer Fletcher Building Ltd. have recently reported a drop in profits, BusinessDesk reported.
Exports to China were the driving force behind an NZ$800 million jump in New Zealand's log exports in the year ending March 31, reported the Ministry of Agriculture and Forestry in July. Log exports totaled NZ$4.4 billion.
The primary source of this article is Scoop Business, Wellington, New Zealand, on Nov. 29, 2011.