{"id":83071,"date":"2022-10-18T08:27:10","date_gmt":"2022-10-18T08:27:10","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/china-rising-demand-construction-sector-boost-demand-logs-market-outlook-still-uncertain\/"},"modified":"2025-09-19T08:58:25","modified_gmt":"2025-09-19T08:58:25","slug":"china-rising-demand-construction-sector-boost-demand-logs-market-outlook-still-uncertain","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/china-rising-demand-construction-sector-boost-demand-logs-market-outlook-still-uncertain\/","title":{"rendered":"China: Rising demand in construction sector to boost demand for logs; but market outlook still uncertain"},"content":{"rendered":"
\n

Strong increases in demand are expected as the Chinese construction industry kicks into 5th gear and in-market log inventories start depleting at a reasonable rate, leading to price increases. The current log inventory in China is around the 3.7 million m3 mark which equates to around 48 days supply. This is down around 800.000 m3 from a month ago but still not at the level that gives buyers confidence to buy.<\/p>\n

In reality, although the October log prices are mostly flat across the exporters (around $133\/m3 for A grade), the actual sales price in the market is down around $US20\/m3 in the last month.<\/p>\n

So, what is leading the reduction in sales prices in China? There\u2019s a number of factors including a continued lack of demand from low confidence in the construction sector. The oversupply of built and part built residential property is yesterdays news but it\u2019s not going to go away easy and it is likely to linger for the medium term. The continued Covid restrictions have severely dented China\u2019s ability to produce and consume which has hit Chinese consumer confidence in general.<\/p>\n

The Chinese Communist Party elections are scheduled for later this month and although it is expected that there will be some form of economic stimulus once the dust settles, the best outcome would be the removal of the Covid restrictions to give the general populous a confidence boost.<\/p>\n

It\u2019s unlikely that there will be a drive towards building more apartments for now on, so the prospect of a massive demand upswing based on residential construction is unlikely. In an effort to try and calm the turmoil in the property sector, the Chinese govt has changed some tax policies to provide tax rebates to people purchasing new homes.<\/p>\n

Lumber imports into China have risen recently upsurge in the European domestic lumber market and an increase in Russian supply which. The NZ log supply will seasonally increase which will probably see inventories begin to rise again.<\/p>\n<\/div>\n

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

Strong increases in demand are expected as the Chinese construction industry kicks into 5th gear and in-market log inventories start depleting at a reasonable rate, leading to price increases. 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