<\/span>In January-June 2023, wood demand decreased in China. The country's weak economy does not give hope that it will recover quickly in the near future. However, for many countries, China still remains one of the main markets for roundwood. Thus, in the first half of this year, Poland increased supplies to China three times. New Zealand increased its share in Chinese imports of roundwood by 7 percentage points up to 43%. At the same time, Russia, on the contrary, has reduced its wood supply, and Australia, from which the ban on the import of these products was lifted, has not started it.<\/p>\nIn January-June 2023, China's roundwood imports decreased by 9.3%, to 20.3 million m3. The cost of supplies fell by 22% to $3.6 billion. The decline of Chinese roundwood imports in the first half of 2023 is due to a strong reduction in supplies in February, fell by 22.5%, to 2.7 million m3 compared to January, when 3.5 million m3 of roundwood was shipped to China.<\/p>\n
Despite the subsequent increase in supplies, such a reduction had a negative impact on the half-year results as a whole. In March, Chinese roundwood purchases increased by 16% compared to February values and amounted to 3.1 million m3. In April, import growth continued - global supplies of roundwood to the Chinese market increased by 9.3% compared to March, to 3.4 million m3. In May, volume increased by 11% month-on-month to 3.79 million m2, and in June \u2013 by 1.2%, to 3.83 million m3.<\/p>\n
The average price for imported logs on the Chinese market fell by 14% to $175.6 per m3 in January-June of this year. In general, prices were unstable throughout the period. The highest price was set in May \u2013 $183 per m3, which is however 13% less than the same period last year. The lowest price for imported wood to China was in June \u2013 $169 per m3, a year-on-year decrease of almost 21%. PF Olsen Log Price Index - June 2023 fell $5 to $103. This is the lowest level since March 2020, when the market was heavily impacted by COVID-19 restrictions. Currently the Index is $12-below its two-year average and $15-below its five-year average. Chinese log buyers face ongoing credit problems, resulting in reduced demand for roundwood. This situation is aggravated by the decline in construction activity in the country due to high inflation and interest rates.<\/p>\n
The basis of Chinese roundwood imports is coniferous species - their share amounted to almost 74% of total supplies (14.9 million m3) in January-June 2023. In second place in terms of volume of purchases is hardwood, the share in the country\u2019s total roundwood imports is 15% or just over 3 million m3. The share of tropical wood is 11% (2.2 million m3). At the same time, the cost of tropical wood is the highest - $270 per m3, while a cubic meter of imported hardwood costs $253, and softwood - $145.<\/p>\n
New Zealand was the largest supplier of roundwood to China in the first half of this year, shipped almost 8.8 million m3, which is 8.3% better than last year. In second place in terms of volume of supplies is Germany, amounted to 2.3 million m3, which is however almost 27% less than for the same period in 2022. Papua New Guinea is in third place with a volume of wood exports of 1.2 million m3.<\/p>\n
Papua New Guinea reduced shipments to the Chinese market by 7%, compared to the first half of 2022. \u00a0The USA import volume was 1.1 million m2 (+1.1%). In January-June 2023, Russia reduced wood shipments to the China by 32%, or 454 thousand m3, to 956 thousand m3. In January 2022, Russia introduced a ban on roundwood exports, but its supply is still ongoing. According to Lesprom Analytics, Russian roundwood exports to China at the end of 2021 amounted to almost 6.4 million m3; and decreased by more than 65% to 2.2 million m3 in 2022. Thus, after the wood exports ban was introduced, China imported 4.2 million m2 less. At the end of 2023, the volume of Russian supplies is unlikely to exceed 2 million m3.<\/p>\n
Of the ten main roundwood exporters to China, Poland increased its supplies the most - more than three times or by 506 thousand m3, to 668 thousand m3. Thus, Poland was able to replace the volumes of softwood that were previously supplied to the Chinese market from Russia. Moreover, the country ranks fourth among exporters of softwood to China. Whereas just a few years ago Poland was not even among the top ten largest suppliers of roundwood to China. Thus, supplies of sawlogs from Poland to China amounted to only 263 thousand m3 in 2020; increased one and a half times to 654 thousand m3 at the end of 2021, and decreased by 19% to 532 thousand m3 in 2022. Exports of coniferous logs to China may exceed 1 million m3 by the end of 2023.<\/p>\n
In addition to New Zealand, Poland and the United States, Japan (+17% to 637 thousand m3) and the Solomon Islands (+1.5% to 773 thousand m3) increased log shipments to China. France (-26% to 509 thousand m3) and Canada (-6.4% to 519 thousand m3) decreased exports of roundwood to China in addition to Germany, Papua New Guinea and Russia.<\/p>\n
In May this year, China\u00a0lifted\u00a0its ban on log imports from Australia, but shipments have yet to begin. China has suspended imports from 2021, citing risks posed by Covid-19 restrictions. Previously, Australia supplied logs worth about $500 million annually. In 2020, Australian exports of roundwood amounted to almost 4.5 million m3 worth $491 million. The country ranked fourth in overall Chinese wood imports. Since the introduction of the import ban, Australia has taken a number of measures, including increased inspections of log consignments, controls during decontamination, follow-up inspections after decontamination and increased audits for all log exporters. China's Ambassador Xiao Qian said in May this year that the new wood quarantine measures \"satisfy the requirements of China Customs.\" The resumption of wood imports comes a month after Australia agreed to suspend its application to the World Trade Organization over import tariffs on Australian barley imposed by the Chinese government. The probability of a significant increase of Australian wood exports to China this year is low due to problems in the Australian forest industry; the \u00a0growing housing shortage; New Zealand' competition and a weak construction market in China.<\/p>","protected":false},"excerpt":{"rendered":"
In January-June 2023, wood demand decreased in China. The country’s weak economy does not give hope that it will recover quickly in the near future. However, for many countries, China still remains one of the main markets for roundwood. 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