Domestic prices for P1-grade radiata pine logs in New Zealand

Log grades:
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 by MPI.
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 prices:
Log prices can be quoted at a number of different pricing points, like 'cost insurance freight' (or CIF, ie, landed at an importing port), 'free on board' (or FOB, ie, 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.

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 these 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.

https://www.teururakau.govt.nz/news-and-resources/open-data-and-forecasting/forestry/wood-product-markets/

Returns to small growers may be lower than those recorded here owing to scale and buyers' margins. 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 changes when further data become available. The sources for this information are Ministry for Primary Industries contacts.

Weighted averages have been used from June 2017.

At URL provided, select 'Download the historic log price series [XLSX, 77 KB]'.

MPI's log price information is available from a number of sources. Radiata pine log prices are published quarterly on MPI's website. These data are 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.

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.

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 specifications sets. The prices are subject to change when further data become available. The sources for this information are MPI's industry contacts.

MPI uses 3 sources for radiata pine log prices:
- surveys of a selection of major New Zealand log suppliers for indicative domestic and export log prices. These are published quarterly on MPI's website.
- the Japan lumber report for A and J grade export prices
- an Overseas Trade Price Index for Exports of Logs, Poles and Sawn Timber based on exporter declarations, published quarterly on MPI's website.