China softwood log inventory has remained stable at about 4.6 - 4.7m. Fresh pine logs are sold quickly after arrival in China, but some older stock is not moving. The current demand is in balance with supply and log buyers obviously prefer to buy the fresher stock as it arrives. Logs used in furniture manufacturing are also selling faster than logs used in the construction industry. The older stock will more likely be used in the construction industry but will be hard to move until construction activity increases.<\/p>\n
Daily port log offtake remained stable over August at around 60 to 65k a day. In the last week of August daily port offtake has lifted to 70k a day. The CFR price for A grade logs still ranges between 145 and 150 USD per JASm3.<\/p>\n
Log supply from New Zealand will start to increase as the weather improves. Due to improved log prices some forest owners will also release some of the production constraints they have placed on harvest crews. However, supply will not ramp up as quickly as it could, as there is less infrastructure in the New Zealand log supply chain due to the lack of sustained work.<\/p>\n
The July Caixin China Manufacturing PMI declined to 50.4 from the positive outlook of 51.7 in June. While Covid outbreaks are still a concern, the main cause for the reduction in positive sentiment was the concern around energy supply in China. Producers in many regions have experienced electrical stoppages as officials have prioritized domestic consumption over industrial use. The power demand from air conditioning units has soared during the heatwave in China.<\/p>","protected":false},"excerpt":{"rendered":"
China softwood log inventory has remained stable at about 4.6 – 4.7m. Fresh pine logs are sold quickly after arrival in China, but some older stock is not moving. The current demand is in balance with supply and log buyers … Continue reading