In China, the softwood import market remains weak but there are small hopes for Q1\/2023. As of mid-November, daily usage is hovering around 70,000 cubic metres per day across the eastern seaboard for all softwoods, well off the pace of the normal 80- 90,000 we would typically see at this time of year.<\/p>\n
But a significant positive is the rate of consumption in a nation where COVID lockdowns in large cities remains the order of the day. Currently, New Zealand shows total dominance in the softwood trade. NZ Radiata pine is now in excess of 85% of all China supply with European spruce basically out of the game at current US$CFR levels (log prices landed China).<\/p>\n
Russia is of course out of the supply top, as is the Pacific North West, and supply out of Uruguay is on weak. This then leaves NZ in a pretty favourable position as and when the market recovers.<\/p>\n
The very suggestion that it will recover is premised on recent heartening signs in China. The Government has recently announced two tranches totalling RMB130bil that is essentially a rescue package to construction sector debt. This is not currently turning the market with little sign of investment into new projects. But the overall market sentiment has improved and in China.<\/p>\n
Also, in early November, the Chinese Government released new policies for Covid Control and the Real Estate Sector. The basic principles of this include that China will look to move towards a less restrictive approach, with rumours that the borders may fully open at some stage next year (perhaps Q3\/4). This news has also improved market sentiment.<\/p>","protected":false},"excerpt":{"rendered":"
In China, the softwood import market remains weak but there are small hopes for Q1\/2023. As of mid-November, daily usage is hovering around 70,000 cubic metres per day across the eastern seaboard for all softwoods, well off the pace of … Continue reading