There has been a major drop in the prices of log exports, driven by a buildup of inventory in the main market, China, which is contributing to "a bit of a slowdown" of log exports handled by Port of Tauranga, says commercial manager Leonard Sampson.
"It's not a significant change at this time," he said. "This month we've noticed a small reduction in shipping volumes, but at this stage it's hard to say whether it's a market correction or just a blip. You can't read too much into it and it's such a fluid situation,"
Bulk exports such as logs and imports of bulk fertilisers and dairy feed supplements were a significant factor in an overall 5.5 per cent rise in overall annual trade volumes reported by the port earlier this year.
The current slowdown has been caused by a significant buildup of logs on wharves in China, said Mr Sampson, who noted that overall demand in China was still strong.
Latest figures from Statistics New Zealand show that the value of New Zealand log exports went from $1.6 billion in 2012 to $2.4 billion in 2013, accounting for 42 per cent of forestry product exports by value, compared with just 3 per cent in 1993, according to data cited by forestry management company PF Olsen.