While it appears that the upward pressure on shipping prices has abated, the China log demand has come off\u00a0 from around 80.000 m3\/day down to 50.000 m3\/day. This reduction in demand can be attributed to a number of reasons but principally slowing construction sector and Covid related shutdowns in sawmills and construction sites.<\/p>\n
March in-market Chinese log inventory is in the 4.5 million m3 which is a reduction from February, but this is likely to increase as NZ supply has strengthened following the March price increases \u2013 it takes around 5 weeks from stump to market. While China holds tight with it\u2019s Covid elimination strategy and we will likely see subdued demand and increased port waiting times as ports are shut without notice.<\/p>\n
As Europe has stopped any Russian log and lumber imports it will be interesting to see how this volume will be re-directed into China. Total Russian log\/lumber supply into Europe was in the vicinity of 25 million m3\/year.<\/p>\n
As Covid sweeps through China, a lack of staff has resulted in longer port wait times for trucks and reduced vessel unloading and loading capacity.<\/p>\n
At the moment,\u00a0European spruce log prices\u00a0below 150 Euro\/cubic meter, and logs with a diameter of 20-28cm are quoted at\u00a0172.79<\/span>\u00a0Euro\/m3<\/span>, which is relatively stable.<\/p>\n New Zealand CFR prices (sales price in China in $US) for log exports are reasonably strong in the mid $US170\u2019s\/m3 but foreign exchange and high shipping costs are bringing additional pressure.<\/p>\n At present, the price of southern yellow pine in the Guangdong market has increased. The big section A quality logs is US$165-188 \/cubic meter.<\/p>","protected":false},"excerpt":{"rendered":" While it appears that the upward pressure on shipping prices has abated, the China log demand has come off\u00a0 from around 80.000 m3\/day down to 50.000 m3\/day. This reduction in demand can be attributed to a number of reasons but … Continue reading