Indicative New Zealand radiata pine log prices

Indicative radiata pine prices and weighted average for the June 2022 quarter.

Generic log type and pricing point June-22 quarter Weighted average
Export (NZ$ per JAS m3 FOB)
Pruned 142 - 226 177
Unpruned A Grade 109 - 157 146
Unpruned K Grade 95 - 152 136
Pulp 82 - 134 121
Domestic (NZ$ per tonne delivered at mill)
P1 159 - 206 188
P2 145 - 204 183
S1 140 - 168 157
S2 123 - 157 140
S3 and L3 100 - 150 128
L1 and L2 84 - 133 123
Pulp 31 - 77 62
Generic log type and pricing point
Export (NZ$ per JAS m3 FOB)
June-22 quarter
Weighted average
Generic log type and pricing point
Pruned
June-22 quarter
142 - 226
Weighted average
177
Generic log type and pricing point
Unpruned A Grade
June-22 quarter
109 - 157
Weighted average
146
Generic log type and pricing point
Unpruned K Grade
June-22 quarter
95 - 152
Weighted average
136
Generic log type and pricing point
Pulp
June-22 quarter
82 - 134
Weighted average
121
Generic log type and pricing point
Domestic (NZ$ per tonne delivered at mill)
June-22 quarter
Weighted average
Generic log type and pricing point
P1
June-22 quarter
159 - 206
Weighted average
188
Generic log type and pricing point
P2
June-22 quarter
145 - 204
Weighted average
183
Generic log type and pricing point
S1
June-22 quarter
140 - 168
Weighted average
157
Generic log type and pricing point
S2
June-22 quarter
123 - 157
Weighted average
140
Generic log type and pricing point
S3 and L3
June-22 quarter
100 - 150
Weighted average
128
Generic log type and pricing point
L1 and L2
June-22 quarter
84 - 133
Weighted average
123
Generic log type and pricing point
Pulp
June-22 quarter
31 - 77
Weighted average
62

How the survey is compiled

These log prices are historical and indicative only and may not correspond to actual prices paid, or grades used, in market transactions. A 'best fit' is applied by survey respondents to align company log grade specification with the generic specifications. Direct comparisons with actual market prices may not apply due to differences between the specification sets. The prices are subject to change when further data becomes available. The sources for this information are Ministry for Primary Industries (MPI) industry contacts.

The log price collection process

MPI collects log prices to analyse trends rather than for marketing purposes, so it does not collect spot prices, day-to-day prices, or one-off sale prices. All data published are historical, usually on a monthly or quarterly basis.

MPI uses 3 sources for radiata pine log prices:

  1. Surveys of a selection of major New Zealand log suppliers for indicative domestic and export log prices. These are published quarterly on this website.
  2. The Japan lumber report for A and J grade export prices.
  3. An Overseas Trade Price Index for exports of logs, poles and sawn timber based on exporter declarations, published quarterly.

Export log grades are typically measured in Japanese Agricultural Standard (JAS) cubic metres. JAS measures logs according to prescribed formulas. Domestic logs are typically measured in cubic metres or tonnes. Conversion factors between all 3 measurements vary owing to a number of variables including wood age, log size, and taper, but are mostly within 90% of a 1:1 relationship. Conversion factors are assumed to be 1:1 on this website.

Log prices can be quoted at a number of different pricing points, like 'cost insurance freight' (or CIF – landed at an importing port), 'free on board' (or FOB – loaded onto a ship at an export port), wharf gate, on truck, and at stump. Export margins charged by New Zealand's log buyers can range from 4% to 15% of a landed price at wharf.

Log prices can vary depending on exchange rates, log measurement methods, and log grade specifications. Log grades have also changed over time. Some industry commentators say log size has decreased within grades (both in small end diameter and length) but log quality is perceived to be increasing (particularly clearwood depth in pruned logs). Keep these factors in mind when comparing these log prices. Prices should be based on a common pricing point.

Log grade and prices

A number of log grades have been selected to represent the overall log market. For the export market these are pruned (to Japan and Korea), A (Japan), J (Japan), K (Korea), and pulp grades. For the domestic market these are pruned (P1, P2), unpruned (S1, S2, L1 and L2, S3 and L3), pulp (as defined by Scion Research), and run-of-bush (a mixture of grades, generally unpruned).

Log grade specifications can vary significantly between suppliers, even within a particular grade. For example, K-grade log specifications may vary in length, small end diameter and allowable knot size. This especially applies to domestic grades, where the Scion Research log grades used by MPI have not been universally adopted by the industry.

To help overcome the situation, MPI relies on industry sources to provide log prices to the nearest log grade equivalent and to identify any significant changes to log specifications.

Prices in the Japanese market are generally set quarterly, Korean prices are commonly set shipment by shipment, and other export markets vary. There is no standard time frame for reviewing domestic prices, which tend to fluctuate depending on sale agreements. MPI only records average log prices from its industry contacts on a quarterly basis.

Export prices are usually provided by industry sources in United States dollars, which MPI converts to New Zealand dollars using a quarterly exchange rate. MPI uses FOB as the pricing point for export prices, while the domestic pricing point is 'landed' or 'delivered' at mill. This means MPI has to make some assumptions about costs if the log prices provided by the industry are to another pricing point. All data is destroyed once it has been aggregated and averaged, to retain confidentiality.

Where possible, the quarterly figures encompass a range of log prices for each grade, rather than a single figure. This reflects the range of prices associated with each grade and helps preserve the anonymity of individual company data. MPI uses a mid-range price to analyse this data. While a volume-weighted average price based on each company's production would give a better measurement of actual prices, volume data are not readily available.

MPI's quarterly log prices now feature the 12-quarter median price series. These prices are derived using the median prices of each log grade, averaged over the last 12 quarters. This price series tends to buffer the effects of any extreme spikes of troughs, which can occur from time to time and tend to distort trends in the short term. 

Availability of log price information

MPI's log price information is available from a number of sources. Radiata pine log prices are published quarterly. The data is also available on Scion Research's Woodwide database. A and J grade prices are available free from MPI and the Overseas Trade Price Index is available through MPI's Statistical Releases by quarterly subscription.