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China's softwood lumber imports have undergone a significant shift, with a preference for suppliers from Russia and Europe. This change in demand has led to North American suppliers losing ground in the Chinese market.<\/span><\/p>\n Compared with the same period in 2022, China's softwood lumber imports increased by 9% in the first quarter. The increase reversed a sharp decline that had continued in recent years and lent support to some analysts' forecasts that overall demand in China would strengthen this year as the country's sluggish real estate sector recovers.<\/p>\n China's imports rose to 4.42 million cubic meters as of March, up from 4.06 million cubic meters in the first quarter of last year, according to Trade Data Monitor. Shipments from foreign suppliers are down 10% in 2022 and 23% in 2021.<\/p>\n Throughout 2022, the rate of decline in China's imports slows down. Shipments reached 4.7 million cubic meters in the fourth quarter of last year, the fourth consecutive quarter of growth and the highest level since 2021. Compared with the fourth quarter of 2022, seasonal factors such as the Chinese New Year have led to a decline in shipments in the first quarter.<\/p>\n Many traders remain hopeful that, over time, China's property sector will get back on track. Government measures aimed at stimulating real estate investment are expected to be fully implemented in the second half of the year.<\/p>\n Despite signs of recovery in the Chinese import market, North American suppliers are still losing ground. Exports from Canada fell to 311,402 cubic metres, down 25% from a year earlier. Shipments from the US fell 13% to 29,172 cubic metres.<\/p>\n North America's share of China's import market fell to 8% from 11% in the first quarter of 2022. The US and Canadian species have been losing market share at a steady rate in recent years, with Europe and Russia emerging as major suppliers.<\/p>\n China's imports from Europe soared to 1.23 million cubic meters in the first quarter of this year, up 41 percent from a year earlier. European producers rely heavily on export markets to compensate for weaker domestic demand in 2023.<\/p>\n As of March, Russia's exports to China amounted to 2.59 million cubic meters. Russian supplies accounted for 59% of China's total imports in the first quarter of this year. However, compared to the first three months of 2022, shipment growth is relatively modest at just 2%. In the first quarter of last year, Russia's share of China's import market was 63%. China is expected to remain the main target for Russian exporters.<\/p>\n Additionally, North American suppliers may face increasing competition from other global producers if overall demand in China continues to recover.<\/p>\n Imports from Chile jumped 88% to 101,670 cubic meters in the first quarter. Shipments from New Zealand more than doubled. The pine trees of these two countries compete directly with the American southern pine.<\/p>\n An influx of softwood logs from Australia has added to the supply mix in recent weeks. A resolution to the long-running trade war between China and Australia has allowed Australian log shipments to resume in China. Historically, Australia has been one of the largest log suppliers to China.<\/p>","protected":false},"excerpt":{"rendered":" China’s softwood lumber imports have undergone a significant shift, with a preference for suppliers from Russia and Europe. This change in demand has led to North American suppliers losing ground in the Chinese market. Compared with the same period in … Continue reading