{"id":78436,"date":"2019-11-07T08:50:35","date_gmt":"2019-11-07T08:50:35","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/cheap-european-logs-flood-the-chinese-market\/"},"modified":"2025-09-19T08:52:03","modified_gmt":"2025-09-19T08:52:03","slug":"cheap-european-logs-flood-the-chinese-market","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/cheap-european-logs-flood-the-chinese-market\/","title":{"rendered":"Cheap European logs flood the Chinese market"},"content":{"rendered":"

While log supply from North and South America in China has virtually dried up the volume from Europe continues to increase. These logs are sold at lower prices than radiata logs from New Zealand. Last month these European logs were selling for around 100 EUR per m3<\/sup>\u00a0plus or minus 5 EUR depending upon quality. At the same time radiata logs were selling for 115-120 USD per m3<\/sup>.<\/em><\/strong><\/p>\n

Total softwood log stocks across China have been decreasing by about 150k m3<\/sup>\u00a0per week for the last six weeks. Many log storage facilities in China are only partially full. This low inventory should be further depleted when demand increases as the weather cools in China and productivity increases in the construction industry.<\/p>\n

Approximately 400 plywood mills had been given very short notice in late August to stop production by the local government as part of ongoing efforts to reduce air pollution. Due to pressure from industry and Central Government these mills have been restarted. This is seen in many other areas where the Government has built industrial parks which are more efficient with better environmental standards then moved log processing to these areas.<\/p>\n

While log supply from North and South America in China has virtually dried up the volume from Europe continues to increase. These logs are sold at lower prices than radiata logs from New Zealand. Last month these European logs were selling for around 100 EUR per m3<\/sup>\u00a0plus or minus 5 EUR depending upon quality. At the same time radiata logs were selling for 115-120 USD per m3<\/sup>. Allowing for exchange rates this means the European logs were a minimum 5 USD per m3<\/sup>\u00a0cheaper. The logs were nice form and didn\u2019t show insect damage. It is difficult to predict the effect of this supply on NZ. The price differential is even higher now in mid-October as prices for pine log have increased while the price of the European logs hasn\u2019t increased.<\/p>\n

New Zealand log exporters and forest owners have benefited from a very stable and steady log market in China over the last four years. While the demand for logs is still strong in China, the market supply and demand balance is becoming more dynamic due to several factors.<\/p>\n