India is emerging as a leading consumer of hardwood and pine Timber. Growing use of pine in Blockbords and Doors. The country is going to be a bright sport for Kiwi logs. India continues to be a solid market and prices have recently lifted there to be among the best on offer. Demand from China and Japan remains flat, but is expected to increase as the winter blues fade and the Chinese New Year holidays finish. The current prices are about $55 on average across the different regions of New Zealand. While exchange rates have marginally improved since December, shipping rates are still stuck in the US$34 to US $36. With the increase in Chinese demand shipping rates are bound to be up. Overall the Agri-Fax market Indicator return for a log is down $1 to $2 and that is what the exporters have dropped their price on average by for January. In the South Island there was quite a wide variation in price changes, and these relate more to timing of shipments. On domestic markets, pruned log prices continue to trend down, due to reduced demand from sawmillers. Lumber exporters are seeing non profit improvements in sight, with continuing high exchange rates, slow demand and very average prices. There could well be further price falls for pruned logs, especially in the North Island in coming months. The price difference between pruned and unpruned continues to close, with less than $15 a tonne now separating logs of the same diameter (SED of35-40cm) in some regions. The Agri-Fax Log Price Index, which measures returns from the whole forest, was slightly down over the last four weeks at $69/tonne (delivered mill/wharf). Lower pruned prices were not quite offset by some higher export and pulp log prices. After the price escalation in plantation timber in India quality panel users have started using pine board once again. Whole sellers are once again trying to locate suppliers of pine boards and flushdoors. It is known that Newzealand pine is very suitable filler for boards and doors. Northern India is a major consumer of Boards where 30 % consumers prefer quality product. With the rise in demand of quality board, Kiwi logs can witness a booming business in India incoming months.