{"id":81079,"date":"2021-08-17T06:10:07","date_gmt":"2021-08-17T06:10:07","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/current-demand-logs-china-low\/"},"modified":"2025-09-19T08:55:56","modified_gmt":"2025-09-19T08:55:56","slug":"current-demand-logs-china-low","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/current-demand-logs-china-low\/","title":{"rendered":"Current demand for logs in China is low"},"content":{"rendered":"<p><em>A number of factors have reduced the immediate demand for logs in China.<\/em><\/p>\n<p>Firstly, the quantity of logs being utilised in China tends to fall away at this time of the year as construction activity slows during the very hot summer months. This typically results in stocks of logs building on the wharves of Chinese ports. This season the quantity of logs being utilised is even lower than normal.<\/p>\n<p>In Taicang (just north of Shanghai) there has been a government crackdown on the operation of timber mills. Whilst this has generally occurred under the guise of improving environmental outcomes, there is also pressure to develop some of the land currently used for mills into higher-value uses.<\/p>\n<p>It has been estimated that maybe half of the milling capacity in Taicang has been shut down.<\/p>\n<p>It is not unusual in China to see Government regulatory changes result in factories being quickly shut down, but over the longer term this capacity tends to be rebuilt in other regions. At this stage it appears that the current slowdown in demand is primarily seasonal.<\/p>\n<p>This explains the recent pushback from Chinese importers on the prices they are prepared to pay for logs. Whilst buyers may be pulling the shots now, the lack of global supply of export logs means the balance of power may swing back to log exporters relatively quickly. Despite the recent fall, returns for logs are still exceptionally high.<\/p>\n<p>China\u2019s main suppliers of logs are New Zealand, Russia, and Europe but it also buys smaller volumes of logs from North America (Pacific North-West region) and South America (mainly Uruguay). Supply from most of these regions is expected to be constrained.<\/p>\n<p>Russia announced some time back that it was banning the export of raw logs to China but these regulations are yet to take effect. Russia wants to support its own domestic milling industry and would rather export sawn timber than logs. Its lumber exports to China have been falling in recent years as China has been importing more logs and less lumber. Russia has also been supplying a smaller portion of China\u2019s lumber imports.<\/p>\n<p>Similarly, there are growing concerns from European mills that the large quantity of logs being exported to China will undermine their ability to secure supply. The export of logs from Eastern Europe to China really cranked up when vast tracts of forest were being felled to stop the spread of bark beetle. There was insufficient local demand, meaning if the logs weren\u2019t exported to China they would simply have rotted where they lay.<\/p>\n<p>China\u2019s relationship with Australia remains strained, meaning we are unlikely to see any significant lift in logs being sourced from Australia. At present, Australia is exporting logs to alternative markets such as Korea and India. Likewise, logs from Uruguay are helping fill demand from India, but the prices on offer from the market in recent months have not matched those of China.<\/p>\n<p>Meanwhile supplies of logs from North America have been very tight in the past six months due to strong demand within the US for timber to build, expand, and remodel homes. Spending additional time at home during lockdowns has prompted this demand. However, that demand is now easing as funds are being directed into other uses, and the supply of lumber has improved. This has resulted in a dramatic plunge in US lumber prices, which had risen at an exorbitant rate in the past year.<\/p>","protected":false},"excerpt":{"rendered":"<p>A number of factors have reduced the immediate demand for logs in China. Firstly, the quantity of logs being utilised in China tends to fall away at this time of the year as construction activity slows during the very hot &hellip; <a href=\"https:\/\/www.timberindustrynews.com\/ro\/current-demand-logs-china-low\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":65177,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4716,4715],"tags":[3254,3384,3284],"class_list":["post-81079","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends","category-market-analysis","tag-china","tag-demand","tag-logs","topic-forestry","topic-sawmilling","area-australia-and-pacific-region","area-china","area-europe","area-north-america","area-russia"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Current demand for logs in China is low - 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\/current-demand-logs-china-low\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Current demand for logs in China is low - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"A number of factors have reduced the immediate demand for logs in China. 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