No quake impact on log prices

The Christchurch and Japanese earthquakes are yet to have any significant impact on New Zealand's log and lumber markets.
While both events are expected to have an ongoing influence on the markets as recovery processes gather momentum, the March Agrifax Forestry Market Report shows no immediate impact.
Japan is New Zealand's fourth-largest log market and the March 11 earthquake and tsunami have severely affected sawmills and manufacturers in those regions. North American exporters are expected to be worst hit by this.
Once recovery is under way, demand for logs and lumber is likely to be strong as traditional Japanese housing is wooden-framed, as are many commercial and industrial buildings because of 1981 and 1995 building code updates. Wooden framing is now preferred because of its flexibility during earthquakes and the lower risk of inhabitants being crushed in the event of a collapse.
The March report shows log exports dropping slightly in January, which has been attributed to shipping during the Christmas/New Year period, but total exports in the three months to January were 2.6 million cubic metres - up 18 per cent on the same period a year earlier.
In-market prices for KS logs jumped to US$150/JAS cubic metre and KI logs rose US$6 to US$144 earlier this month.
While CFR rates are 8 per cent ahead of this time last year, the report warns that last March's rise was followed by a three-month decline of 17 per cent.
The market has been affected by unrest in the Middle East, with the resulting rise in oil prices pushing up shipping costs.
This effect has been compounded by the resumption of export production in Queensland. Costs had diminished in January and February as flooding halted exports from that region of Australia.
Spot shipping rates to China and Korea are up 25 per cent on the previous month, although China remains the dominant influence on New Zealand log markets. Activity has surged again post-New Year celebrations.
The Indian market continues to grow, with high in-market log prices more than offsetting the increasing shipping costs to this country. Exports to South Korea were up 5 per cent on the year before.
Domestically, wood processors in Canterbury have seen summer orders and activity further delayed.
These stalled as assessments were carried out after the September quake and have now been deferred again.
Demand remains slow outside Canterbury, with January hitting the second-lowest number of dwelling consents on record.
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Carbon prices are up domestically and internationally.
European Union allowances and carbon emission reductions have been rising with oil prices, as they have since their inception.
The New Zealand dollar fell after the Christchurch earthquake in February, pushing up the value of European credits in this country.
These are now worth 15.95 euro/tonne - up from 14.67 last month. Carbon emission reductions are now at 11.85 euro/tonne, marginally above last month's 11.47 and the New Zealand unit stands at $20.17 per tonne, rising from $19.20.