Dent in metal and timber wholesaling

Timber and metal wholesaling fell in the September 2019 quarter, Stats NZ said today.

Seasonally adjusted, the basic materials industry sales value fell $182 million (2.8 percent), largely driven by falls in timber and metal. The basic materials industry also includes agricultural products, chemicals, and hardware.

“The fall in timber wholesaling coincided with an oversupply of logs in China and a drop in the sale price of New Zealand logs in that market,” business statistics manager Geraldine Duoba said.

Overseas merchandise trade: September 2019 showed exports of logs, wood, and wood articles fell 14 percent in the September quarter.

Overall, seasonally adjusted wholesale trade sales rose 0.3 percent, the fourth consecutive quarter with sales increases of less than one percent.

In contrast to the fall in basic materials, four of the six wholesale industry groups saw sales increases in the September 2019 quarter. The largest rise was for other goods wholesaling (which includes pharmaceuticals, toiletries, and furniture), up $141 million (3.4 percent).

The actual value of total wholesale trade sales was $28 billion in the September 2019 quarter, up $460 million (1.7 percent) from the September 2018 quarter.