Large New Zealand forestry companies, including Carter Holt Harvey, have cut their softwood log exports to South Korea in response to an oversupply of timber in the Asian country.
The timber glut was caused by Korean buyers boosting their purchases of New Zealand logs last year, followed by a slowdown in the construction industry.
Exporters, also including Kaingaroa and Prudential Timber Investments, have reduced shipments by about a fifth in a bid to shore up prices. But allowing trees to grow longer is adding to the value of their forests.
Silva Forest Products Ltd, which manages the exports for the forestry companies, had already planned to reduce sales by a third before the Korean construction slump due to growing freight costs and a 14% increase in the New Zealand dollar.
