The log export trade to China will eventually recover from its slump but until it does it is positive for the local timber and building industry, the Timber Industry Federation says.
An over-supply of A-grade export logs due to a softening of the China market has caused prices to drop.
Timber Industry Federation spokesperson Kevin Hing says the availability of logs for domestic processing will improve but he expects forest owners to slow harvesting until the China market recovers.
"It's a question of when it will recover because there's an underlying demand over there for wood products," Mr Hing said.
"Forest owners aren't going to cut down logs if they can't sell them, so generally speaking that depends on whether you're driven by the need for cash flow or whether you have the ability to reduce your harvest."
Mr Hing said he would expect a drop in the domestic price of logs.