Export log prices have tumbled as a result of a drop in demand in China, the main market.
NZX Agrifax primary industry analyst Nick Handley said log prices had fallen 20 percent in the past two months and it could take several months for the supply-demand balance to come right.
"There's been a significant price correction in the Chinese market after inventory levels got too high in the first quarter. A slowdown in China's property market led to a general tightening of credit that has affected several industries in China," he said.
"This slowdown, combined with log deliveries coming in at a record pace, meant supply and demand became unbalanced very quickly."