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In 2020, among the logs exported from Australia to China, quarantine pests were repeatedly detected by the Chinese Customs. Therefore, in accordance with relevant laws, China has suspended imports of logs from Queensland, Victoria, Tasmania and South Australia.<\/p>\n
This was undoubtedly a devastating blow to Australian timber merchants at that time and in the following three years. In 2022, the global timber market has seen declining demand on the one hand and soaring production costs on the other. The situation is fragile, unstable, and highly uncertain. The Australian timber industry has also had an up and down year.<\/p>\n
Australian softwood log exports down 66.1%<\/strong><\/p>\n In January 2022, Australia followed New Zealand's export log price index and fell to the lowest point in more than a year. Despite the subsequent sharp rebound, its price index has gradually declined throughout the rest of 2022, eventually returning to January levels.<\/p>\n In the annual export data statistics as of December 2022, Australia's total softwood log exports fell sharply by 66%; December 2022 was the twenty-eighth consecutive month of decline in its annual softwood log exports. The value of the composite index traded in December of the same year showed average log prices 9.3 percent below the index's starting point in January 2017.<\/p>\n After Chinaimposed a ban on Australian logs, India became a new market for Australian log exports. However, the share that India can absorb is not much, the number of logs purchased on a regular basis is small, and the monthly transaction volume fluctuates.<\/p>\n And Australia's softwood log export specifications have also changed, being classified as having a diameter greater than or less than 15cm. However, due to the unstable monthly export volume, the distinction of specifications also makes exporting challenging.<\/p>\n Wood chip exports up 13.9%<\/strong><\/p>\n Australia's overall wood chip export trade includes both hardwood chips and softwood chips. Among them, hardwood wood chips accounted for a large part of Australia's wood chip exports, and the annual sales volume increased by 12.1% for the whole year.<\/p>\n Due to the inability to export logs to China, more and more softwood logs in Australia are cut into wood chips for export. As of December 2022, the total annual export of Australian hardwood and softwood wood chips has increased by 13.9% compared with the previous year.<\/p>\n But in fact, the export of softwood chips still has room to continue to grow. Australia's softwood chip exports continue to climb as woodchips prove to be a sustainable option and international markets face a shortage of recycled fiber, which is also driving demand for woodchips.<\/p>\n Can Australia return to the Chinese log market?<\/strong><\/p>\n Previously, Australia and New Zealand were one of the two largest log suppliers to China. After China suspended the import of Australian logs, New Zealand took advantage of the trend to take over Australia's market share in China and increased log exports to the Chinese market.<\/p>\n Recently, China lifted the unofficial ban on Australian coal imports. This means that China's ban on Australian logs and other commodities is expected to be lifted amid Australia's initial success in repairing trade relations with China.<\/p>\n In addition, the head of the Australian Forest Products Association revealed that Australian agricultural officials have also recently launched \"encouraging\" negotiations with Chinese customs on log imports.<\/p>\n Meanwhile, Australian Trade Minister Don Farrell also said China was reordering Australian timber products. However, whether Australia can finally return to the Chinese log market is not only a matter of time, but there are still various factors to consider.<\/p>\n However, due to the recent severe weather in New Zealand's North Island, its log supply is likely to shrink, and even affect the market price of logs in China. If China's timber trade restrictions on Australia are lifted in the future, the problem of domestic log supply and price will probably be alleviated to a large extent.<\/p>","protected":false},"excerpt":{"rendered":" In 2020, among the logs exported from Australia to China, quarantine pests were repeatedly detected by the Chinese Customs. Therefore, in accordance with relevant laws, China has suspended imports of logs from Queensland, Victoria, Tasmania and South Australia. This was … Continue reading