{"id":77246,"date":"2019-03-14T13:16:20","date_gmt":"2019-03-14T13:16:20","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/high-stocks-weak-demand-cause-falling-timber-prices-china\/"},"modified":"2025-09-19T08:50:07","modified_gmt":"2025-09-19T08:50:07","slug":"high-stocks-weak-demand-cause-falling-timber-prices-china","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/high-stocks-weak-demand-cause-falling-timber-prices-china\/","title":{"rendered":"High stocks and weak demand cause falling timber prices in China"},"content":{"rendered":"

Timber stock levels in Zhangjiagang markets remained high throughout 2018. In November, stocks of okan, a main species imported, reached almost 60,000 cubic metres, a volume sufficient to supply downstream industries for up to six months.<\/em><\/p>\n

Timber prices at Zhangjiagang markets fell sharply in 2018 due to high stocks and weak demand, it was only merbau and sapelli for which prices remained more resilient.<\/p>\n

Prices for ebony logs with a diameter of 50-70 cm fell to RMB2500-2600 per cubic metre in 2018 from RMB4000 per cubic meter in 2017. African rosewood prices dipped to RMB2300-2500 per cubic metre in 2018 from RMB3800 per cubic metre in 2017.<\/span><\/p>\n

Okan was sold at RMB2200-2300 per cubic metre, a year on year decline of RMB1200-1300 per cubic metre. Ekki logs with a diameter of 80-100 cm were selling at RMB2100-2200 per cubic metre, a year on year decline of around RMB600 per cubic metre.<\/p>\n

Dillenia logs with a diameter of 50-70 cm were sold at RMB2100 per cubic metre, down RMB500 per cubic metre year on year,<\/p>\n

Many timber companies are facing unprecedented challenges after a good year in 2017. At that time most businesses had confidence in the 2018 market. Unfortunately, they did not anticipate the sharp downturn in demand in 2018. All the profits earned in 2017 were lost in 2018.<\/p>\n

Looking ahead, analysts write that traders have concluded that there is little chance of a turnaround in demand even after the February Spring Festival.<\/p>\n

However, traders see a steady demand for sapelli and merbau logs as they are very popular species. Sapelli is very popular for door manufacture and merbau is the first choice for outdoor furniture and restoration of ancient buildings.<\/p>\n

Gloomy Zhangjiagang timber market sales in 2018<\/strong><\/p>\n

The combined effect of strict environmental inspection, the trade friction between China and the United States and the volatility of RMB exchange rate coupled with declining domestic demand is having a big impact on the level of trade and prices at the Zhangjiagang timber market. Analysts write that it is the falling domestic demand that is of most concern to traders.<\/p>\n

Zhangjiagang city is the largest distribution centre for imported timber in China. At present there are 28 timber markets around the Zhangjiagang Port with an operation area of more than 1 million square metres and over 2000 timber traders and hundreds of timber processing mills. About half of these mills have developed in recent years. Zhangjiagang timber imports account for about 25% of all timber imports.<\/p>\n

The major issue for the industries in the area during 2018 was environmental protection as wood processing plants become the focus of attention because of their poor pollution abatement technologies.<\/p>\n

Most of the timber enterprises around the Zhangjiagang Port are family workshops having no effective measures to deal with pollution. This led to the Zhangjiagang industries becoming the focus of investigation in 2018.<\/p>\n

As many as 60% of wood processing enterprises around Zhangjiagang Port have been forced to close due to environment control problems since the beginning of 2018. In addition the domestic economic downturn is proving fatal for many small enterprises.<\/p>\n

The Chinese real estate industry is the mainstay of the national economy and this suffered a heavy blow in 2018 due to the economic downturn.<\/p>","protected":false},"excerpt":{"rendered":"

Timber stock levels in Zhangjiagang markets remained high throughout 2018. In November, stocks of okan, a main species imported, reached almost 60,000 cubic metres, a volume sufficient to supply downstream industries for up to six months. Timber prices at Zhangjiagang … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":62030,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4716,4715,4714],"tags":[3254,4071],"class_list":["post-77246","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends","category-market-analysis","category-wood-industry-prices","tag-china","tag-timber-prices","topic-forestry","topic-industry-prices","topic-sawmilling","area-china"],"acf":[],"yoast_head":"\nHigh stocks and weak demand cause falling timber prices in China - Timber Industry News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.timberindustrynews.com\/ro\/high-stocks-weak-demand-cause-falling-timber-prices-china\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"High stocks and weak demand cause falling timber prices in China - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"Timber stock levels in Zhangjiagang markets remained high throughout 2018. 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