{"id":81617,"date":"2021-12-20T11:39:42","date_gmt":"2021-12-20T11:39:42","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/chinese-demand-softwood-logs-low-due-market-uncertainty\/"},"modified":"2025-09-19T08:56:40","modified_gmt":"2025-09-19T08:56:40","slug":"chinese-demand-softwood-logs-low-due-market-uncertainty","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/chinese-demand-softwood-logs-low-due-market-uncertainty\/","title":{"rendered":"Chinese demand for softwood logs very low due to market uncertainty"},"content":{"rendered":"
\n

The current enthusiasm of Chinese domestic timber businessmen to stock up at the end of the year is much less than in previous years. Especially for imported softwood, the disorder of shipping and the uncertainty and instability of market demand have aggravated the Chinese timber merchants' ''wait and see'' mood.\u00a0Among all wood species, radiata pine and southern pine timber merchants have a strong waiting mood, and the recent market is mainly based on clearing inventories.<\/p>\n

At present, the China domestic softwood log inventory is still maintained at more than 5 million cubic meters, the average daily log shipment volume of various ports is 75,000 cubic meters, and the daily log volume arriving at the port is around 50,000 cubic meters.\u00a0The volume of domestic log imports fell below 5 million cubic meters again in October, a drop of 14.55% from the previous month and it did\u00a0not exceed 5.2 million cubic meters in November<\/p>\n

New Zealand's log export market is grappling with steep declines in Chinese demand. Demand is expected to remain weak in FY22. Trade reports are pointing to construction declines of 20% y\/y.<\/p>\n

While this will have some impact on US PNW log exports, NZ producers are more highly levered to China. NZ log prices have eased. Among the US Timber exporters, Rayonier is the most leveraged to China.<\/p>\n

Falling prices, lower demand, and elevated inventories have triggered a 30% drop in NZ production between July and November. Producers are reportedly taking longer- than-normal Christmas breaks to help balance S\/D and reduce Chinese inventories.<\/p>\n

January 2022 could see some relief as Russia's log export ban kicks in. However, the central near-term issue is the slowing in Chinese construction markets.<\/p>\n

Because of its high dependence on Asian exports, NZ is among the world\u2019s most volatile timber markets. Early 2021 saw the highest pricing levels in recent memory. Since late summer, markets have pivoted dramatically in the other direction.<\/p>\n

Weyerhaeuser ships ~20% of its West Coast log exports to China. Rayonier also has West Coast exposure, but it is further exposed through its large NZ operations. RYN has already flagged the China issue. The question is whether the current drop proves deeper\/longer than expected.<\/p>\n<\/div>\n

<\/h2>","protected":false},"excerpt":{"rendered":"

The current enthusiasm of Chinese domestic timber businessmen to stock up at the end of the year is much less than in previous years. 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