More log exports despite falling prices

New Zealand exported more logs and wood in June 2019, despite falling log prices overseas, Stats NZ said today.

In June 2019, the value of all goods exports rose $136 million (2.8 percent) from June 2018 to reach $5.0 billion.

Exports of logs and wood led the rise in exports, up $65 million (16 percent) from June 2018 to $472 million in June 2019. These commodities are the third-largest goods export group, behind milk powder, butter, and cheese ($1.1 billion) and meat and edible offal ($678 million).

The rise in logs and wood was led by untreated logs, up $55 million (20 percent) on a year earlier. The quantity rose 26 percent and unit values fell 4.6 percent.

“The average value of untreated log exports fell to $163 a cubic metre in June, down from a recent high of $177 in February,” international statistics manager Geraldine Duoba said.

New Zealand exports of untreated logs to China were worth about $3.0 billion in the past year, or 80 percent of the $3.8 billion in total untreated log exports.

MonthQuantity
Jun-171696691
Jul-171565899
Aug-171688301
Sep-171561369
Oct-171868388
Nov-171878083
Dec-171605155
Jan-181054065
Feb-181621376
Mar-181963386
Apr-181696611
May-181888757
Jun-181573998
Jul-181984379
Aug-181852292
Sep-181781015
Oct-181976962
Nov-182011086
Dec-181631326
Jan-191288811
Feb-191843428
Mar-192160116
Apr-191839934
May-192009784
Jun-191985046
MonthValue
Jun-17153.59
Jul-17155.24
Aug-17153.49
Sep-17161.7
Oct-17161.68
Nov-17173.21
Dec-17172.31
Jan-18170.99
Feb-18164.52
Mar-18162.85
Apr-18159.93
May-18165.34
Jun-18171.22
Jul-18172.28
Aug-18161.53
Sep-18165.41
Oct-18169.42
Nov-18170.45
Dec-18165.35
Jan-19174.45
Feb-19176.6
Mar-19175.82
Apr-19166.62
May-19170.89
Jun-19163.3

Of New Zealand’s main export markets, China had the largest increase in exports, up $297 million (27 percent) from June 2018 to $1.4 billion in June 2019. The rise was led by beef, milk powder, and untreated logs.

“Strong growth in exports to China continues to offset a slowdown in the value of sales to other key markets such as Australia and the EU,” Geraldine Duoba said.

“China is New Zealand’s largest goods export market, making up 28 percent of all goods exports, and the fastest growing of our main export markets.”

Fuel leads fall in imports

Imports of fuel (down $328 million) led a fall in goods imports of $515 million (10 percent) to $4.6 billion in June 2019 compared with June 2018. This is the lowest level for imports since the $4.3 billion recorded in February 2018.

The fall in fuel value was quantity driven, down 69 percent from June 2018. Fuel quantities and values in June 2018 were the highest for any month on record. In 2018 there was a planned maintenance shutdown of the Marsden Point oil refinery from end of March to mid-June. As a result, fuel imports for that period were unusually high, especially in May and June 2018.

In contrast, crude oil was little changed in both values and quantities this month, compared with the same month last year.

MonthFuelCrude oil
Jan-18344765506969
Feb-18183937413257
Mar-18363455478491
Apr-18282135455730
May-1837112691659
Jun-18465726374374
Jul-18280947495525
Aug-18210138406292
Sep-18297839501206
Oct-18150583481751
Nov-18253491316552
Dec-18192605591975
Jan-19344728482586
Feb-19275574410101
Mar-19233358412267
Apr-19347985402169
May-19296587523641
Jun-19146456374880

Vehicles, parts, and accessories also added to the fall (down $130 million) driven by motor cars (down $67 million).

Month$
Jan-17381142034
Feb-17383677670
Mar-17496439172
Apr-17440038358
May-17467735022
Jun-17503048815
Jul-17502158536
Aug-17457068460
Sep-17400589940
Oct-17478550016
Nov-17513200137
Dec-17417920117
Jan-18384378679
Feb-18257576635
Mar-18494104236
Apr-18549884648
May-18545772938
Jun-18458147095
Jul-18455458834
Aug-18472660932
Sep-18454845725
Oct-18397875383
Nov-18334549457
Dec-18398839196
Jan-19437069323
Feb-19350235873
Mar-19400051979
Apr-19365677481
May-19405402301
Jun-19390669077

Trade surplus for June month

The monthly trade balance was a surplus of $365 million. This is the fourth surplus in a row.

/Stats NZ Public Release. The material in this public release comes from the originating organization and may be of a point-in-time nature, edited for clarity, style and length. View in full here.