This year, China's log import prices are rising. For China's timber import market, 2021 is a spectacular start. Most of the timber prices are soaring. This is quite rare in recent years, especially the price of imported European spruce and New Zealand radial pine logs has risen to the highest level in history

The reason for the price rise

The most serious price fluctuation in China is cork log, and the price of hardwood log is relatively stable at present.

The first reason for the price increase is the epidemic. Demand for wood products has increased in the United States, Canada and parts of Europe. Due to the growing demand, China's log suppliers see the opportunity of price increase.

And then there is the impact of shipping. The epidemic has a significant impact on international trade. The port inspection and quarantine is more strict, the container circulation is interrupted, and the shipping company has increased the cost of container transportation.

The third is the impact of supply and demand. In 2020, China's total timber imports will be 108.02 million cubic meters, a year-on-year decrease of about 5%. Demand from major timber suppliers such as Russia, New Zealand and Canada declined. In addition, as early as December 2020, China imposed a log export ban on Australia, resulting in a large log supply gap.

Falling inventories in supplier countries and China led to a temporary imbalance between supply and demand of logs, which in turn pushed up prices.

China's log imports grow 21% in the first quarter of 2021

Industry data show that in May, China's national softwood log inventory has dropped to 4.2 million cubic meters, and the daily port sales volume has increased from 70000 cubic meters in March to 120000 cubic meters in early April, which has dropped to about 100000 cubic meters in May.

In terms of log imports, New Zealand logs

The import volume increased significantly, about 15% over the same period last year. The number of logs from Europe remained at about 1 million cubic meters per month, lower than the peak of 1.5 million cubic meters per month.

In the first quarter of this year, China's log imports were 14.95 million cubic meters, up 21.3% from 12.2 million cubic meters in the same period last year. China's blockade of COVID-19 caused a sharp rise in the first quarter of 2021. Imports of logs from Germany increased by 90% to 3.28 million cubic meters, while imports of sawn timber from Germany increased by 37% to 950000 cubic meters. At present, Germany is the second largest supplier of logs to the Chinese market after New Zealand.

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At present, Europe's log exports to China are affected by the increase and shortage of container freight. Therefore, it is expected that the supply from Europe will not increase significantly in the future. In view of the over concentration of global timber resources in the North American market, European sawn timber exports (including logs) to China are expected to slow down as supply shifts to the United States to cope with the current housing and decoration boom.