The CFR log prices in China have risen steadily over the last couple of months.<\/p>\n
China softwood log inventory is about 2.7m m3<\/sup>\u00a0and the inventory levels fluctuated along with supply levels, as log demand has remained steady at 60k m3\u00a0<\/sup>per day. The CFR price range for A grade is currently 124-128 USD per JASm3\u00a0<\/sup>for A grade. This has increased steadily over the month and now appears to be stable. However, wholesale log prices have recently dropped slightly (10-20 RMD per m3<\/sup>), as sawmill inventory levels have increased. The furniture and MDF markets are faring better than the construction market. Therefore, the higher-grade logs are easier to sell than the lower-grade logs.<\/p>\n The China Caixin Manufacturing PMI slipped in September to 49.3 from 50.4 in August. (Any number above 50 signals manufacturing growth). This is the lowest level since July 2023. In general, supply edged up while demand dropped. The log market was a contrast to this though as log supply dropped over this period.<\/p>\n Prices for new homes in China decreased 5.7% in September compared to the previous year. This is the 15th consecutive month of declining house prices. Despite the prolonged and well-documented troubles in the construction industry, there are some green shoots of recovery. In August the inventory of unfinished homes decreased by 12.7% from the previous year and sales of new homes were higher than new construction starts.<\/p>\n Repeated Government efforts to stimulate the construction industry have underwhelmed the market and had minimal impact. One concrete outcome is the Government will renovate 1 million homes in the older rundown dwellings in larger cities.<\/p>","protected":false},"excerpt":{"rendered":" The CFR log prices in China have risen steadily over the last couple of months. China softwood log inventory is about 2.7m m3\u00a0and the inventory levels fluctuated along with supply levels, as log demand has remained steady at 60k m3\u00a0per … Continue reading