New Zealand exporters are giving ground on the premiums they have long held on furniture-grade logs, as weak furniture and construction demand across China has eased CFR prices in recent weeks. That is according to PF Olsen, the New Zealand-based forest management and log marketing firm, whose latest wood market report tracks softening retail activity feeding back through the export log supply chain.
Down 10.4 per cent on the same month last year, retail furniture sales totalled CNY 13.4 billion in April, whilst retail sales of construction and decoration materials reached CNY 10.1 billion, a fall of 13.8 per cent year-on-year. The monthly figures extend a slide already visible across the opening months of 2026.
Reporting weak demand and elevated inventory levels, manufacturers continue to put pressure on premiums for furniture-grade logs such as pruned and A40 grades. Across January to April, retail furniture sales were down 1.4 per cent year-on-year, whilst retail sales of construction and decoration materials declined 7.1 per cent over the same period.
Sitting at NZ $126 to NZ $127 per JASm3 for the larger exporters, CFR prices for A-grade logs from New Zealand have edged lower in recent weeks. Most exporters have accepted reductions of about NZ$ 2 per JASm3, underlining how tight the room has become to defend furniture-grade premiums against weak downstream demand.
Held relatively stable within a 2.4 to 2.7 million cubic metre range, softwood log inventories across China have absorbed higher arrivals through April without building further. Softwood log imports totalled 2.204 million cubic metres for the month, up 0.9 per cent on March.
Combined hardwood and softwood log imports tell a similar story, reaching 2.98 million cubic metres in April. That marked a 7.9 per cent month-on-month rise, running 1.7 per cent ahead of the same month last year as buyers replenished at softer prices.
Steady at about 55,000 to 60,000 cubic metres, the daily log offtake across China has held firm even as the lumber trade weakened. Softwood lumber imports fell 32.8 per cent year-on-year in April to 967,000 cubic metres, with cumulative annual imports down 12.5 per cent. Anchored to soft retail demand and steady offtake, the market leaves New Zealand exporters defending furniture-grade premiums whilst lumber imports continue their year-on-year retreat.
