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ForestX Comment

Unfortunately, the forestry industry is seeing the results of a shift in Chinese demand from New Zealand pine to beetle infested European spruce which has to be harvested sooner rather than later. New rail links from Europe to China make the shift economic. For the longer term new generation, more fuel efficient, shipping will increase the reach of China around the world. The writing was on the wall last year as the Chinese encouraged log prices to fall, it remains on the wall as the virus is used to further encourage prices to fall. Forestry leaders are at a cross-roads: sit and hope for an improvement in Chinese sentiment towards New Zealand pine or start to build a broader client base for the future.