{"id":88627,"date":"2025-03-07T04:15:06","date_gmt":"2025-03-07T04:15:06","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/new-zealand-log-exports-face-weak-markets-in-china-and-india\/"},"modified":"2025-09-19T09:03:50","modified_gmt":"2025-09-19T09:03:50","slug":"new-zealand-log-exports-face-weak-markets-in-china-and-india","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/new-zealand-log-exports-face-weak-markets-in-china-and-india\/","title":{"rendered":"New Zealand log exports face weak markets in China and India"},"content":{"rendered":"<p data-start=\"48\" data-end=\"452\">New Zealand's loog prices during January and February have remained stable across both export and domestic segments, providing some support to the forestry supply chain. However, as reported last month, signs of weakness are evident in both China and India, with supply to both markets exceeding demand. Consumption levels are expected to pick up, and if they do, the current downward price pressure could be averted.<span id=\"more-37581\"><\/span><\/p>\n<h3 data-start=\"454\" data-end=\"469\"><strong data-start=\"458\" data-end=\"467\">China<\/strong><\/h3>\n<p data-start=\"471\" data-end=\"956\">Market conditions in China remain subdued, largely due to uncertainty surrounding exports to the US and slow demand recovery after the Lunar New Year (CNY) holiday. Daily log consumption was around 10,000 m\u00b3 as of mid-February, reflecting the gradual return of workers from their home provinces. For confidence to improve, daily usage must climb to 50,000 m\u00b3, while inventory needs to remain below 4 million m\u00b3. Currently, inventory sits at 3.9 million m\u00b3, just below this threshold.<\/p>\n<p data-start=\"958\" data-end=\"1210\">A factor supporting market sentiment is that deliveries from New Zealand in the first half of February were below expectations, with only 17 shipments arriving. This lower-than-expected supply has helped stabilize confidence despite weak consumption.<\/p>\n<p data-start=\"1212\" data-end=\"1440\">For the moment, A-grade logs are priced at CFR $118 per m\u00b3, with no immediate expectations of movement. Market participants are waiting for usage and supply dynamics to become clearer before making any significant adjustments.<\/p>\n<h3 data-start=\"1442\" data-end=\"1457\"><strong data-start=\"1446\" data-end=\"1455\">India<\/strong><\/h3>\n<p data-start=\"1459\" data-end=\"1826\">In India, A-grade log prices have fallen from CFR $145 to $125 per m\u00b3 over the past four months. Despite this price drop, buyers have been hesitant to issue Letters of Credit (LCs), even at the lower levels. Some bonded cargo is being offered at CFR $115 per m\u00b3, but much of this stock is aging, and buyers are using this as leverage to negotiate further discounts.<\/p>\n<p data-start=\"1828\" data-end=\"2178\">Daily log usage remains weak, though expectations are for an increase in the coming weeks. Some sawmill owners in India use bonded cargo as a means to defer duty and GST payments, meaning that not all of the 103,000 m\u00b3 currently sitting in bonded warehouses is distressed stock. Determining how much of it represents actual oversupply is difficult.<\/p>\n<p data-start=\"2180\" data-end=\"2638\">New Zealand\u2019s log trade with India continues to be impacted by a long-standing tariff, which effectively reduces log values by $7 per m\u00b3. This has given Australian logs a competitive advantage, even though they are smaller and of lower quality. At present, price is a more critical factor than quality for Indian buyers, but the tariff remains a disadvantage for New Zealand exporters. This underscores the need for trade negotiations to address the issue.<\/p>\n<h3 data-start=\"2640\" data-end=\"2664\"><strong data-start=\"2644\" data-end=\"2662\">Market Outlook<\/strong><\/h3>\n<p data-start=\"2666\" data-end=\"2950\">The supply-demand imbalance was evident in January, with China receiving 36 shipments when demand was closer to six, and India receiving seven shipments against a demand of about four. These figures were influenced by the holiday period in late January, which slowed trade activity.<\/p>\n<p data-start=\"2952\" data-end=\"3290\">For the next three months, indicators point to stable pricing as long as consumption picks up. However, shipping costs are rising, and global trade uncertainties\u2014including tariff disputes\u2014may impact market conditions. Some industry sources suggest that the recent uptick in shipping costs could be short-lived if trade activity weakens.<\/p>\n<p data-start=\"3292\" data-end=\"3673\">Domestically, a survey of some New Zealand customers suggests a slight increase in sales inquiries in January, alongside a modest rise in new housing starts. However, caution remains, with some mills still accumulating stock in certain grades. Meanwhile, domestic sawmill lumber exports have benefited from a weaker New Zealand dollar, though market prices remain under pressure.<\/p>","protected":false},"excerpt":{"rendered":"<p>New Zealand&#8217;s loog prices during January and February have remained stable across both export and domestic segments, providing some support to the forestry supply chain. However, as reported last month, signs of weakness are evident in both China and India, &hellip; <a href=\"https:\/\/www.timberindustrynews.com\/ro\/new-zealand-log-exports-face-weak-markets-in-china-and-india\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":96523,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4716],"tags":[],"class_list":["post-88627","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>New Zealand log exports face weak markets in China and India - Timber Industry News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.timberindustrynews.com\/ro\/new-zealand-log-exports-face-weak-markets-in-china-and-india\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"New Zealand log exports face weak markets in China and India - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"New Zealand&#039;s loog prices during January and February have remained stable across both export and domestic segments, providing some support to the forestry supply chain. 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