MAY BE A LULL

Evening Post, Volume CXII, Issue 2, 2 July 1926, Page 8

MAY BE A LULL

DOMINION'S SMALL UNITS

AMERICA WINS BY AID OF MASS

PBO^UCTION,

While there is some reason to believe that North American sawmillers will not continue to be able to sell oversea their lower grades at recent under-cutting prices, the fact remains that New Zealand sawmills, like New Zealand freezing works, have the economic disadvantage of operating in small units as compared with their competitors in America and Argentina respectively.

In the first place, it is believed that, the American sawmiller's increasing inability to get as high prices as he used to get for the sale of his highergrade timber in his home market may compel him to charge more for lower grades, in which case the higher homo price for the latter will leave him less margin for underselling in oversea markets like New Zealand. Details of imports show that during the five months ended 31st May, 1926, 27 niillion feet is.M. of timber were imported into New Zealand, compared with almost 33 million feet B.M. imported during the corresponding period of 1925. .Trade in poles and sleepers which, as explained last month, ..had fallen considerably this year, again showed a decrease. Only three and one-third million feet B.M. have been imported this year, compared to 12} million feet BM. for the same period of last year—a decrease of approximately nine million feet B.M. This indicates the curtailment of Government and local bodies' buying activities. Perhaps the curtailment is teniporary. . Movements in American soft woods are atill active, almost 13i million feet B.M. having been imported this year, compared to 10J million feet B.M. for the same period last year—an increase of over three million feet B.M. For. the month of May the importations of cedar and hemlock were low, compared with those for the; previous months of this year. There is some reason to believe that softwood importations will commence to decline within the near future. Present importations represent commitments made during a period of higher demand than now exists. Future importations should reflect the decreased consumption of recent date and the competitive lowered prices of native woods. Eecent developments on the American domestic market may also work to the advantage of the native woods. Not only do prices tend to harden, but there appears to be a steadily lessening demand for the upper grades of lumber in all softwoods. It is the considered opinion of responsible American authorities that this may require the recasting of the present system of' apportioning the selling values of the log, pl-.cing less dependence on the often comparatively small proportion of clears recovered, and distributing the values more equitably among the lower grades in order to make the average run of the log show a profit. This will tend to raise the price of those grades of whose importation the New Zealand sawmillers so bitterly complain. : '