China importation of lumber and logs roars back to new highs in the 2Q/13, with imports up 30 % year-over-year
Increased investments in the housing sector resulted in record imports of logs and lumber to China in the 2Q/13, reports the Wood Resource Quarterly. Lumber importation has grown faster than that of logs, with Russia and Canada being the major lumber suppliers in recent years. New Zealand has become the major supplier of logs, overtaking Russia, who has long dominated this market
Seattle, USA. After a decline in importation of logs and lumber into China in 2012 and early 2013, the country came back roaring in the 2Q/13 with the import value increasing by more than 30 % year-over-year, as reported in the Wood Resource Quarterly (www.woodprices.com). The total value of imported softwood logs and lumber was over 2.2 billion dollars in the 2Q/13, an increase by almost $600 million from the previous quarter.
The higher demand for wood products comes as house-building activities have increased in the first half of 2013 as compared to the same period in 2012. Year-over-year, investments were up 13 % in residential buildings, and 23 % in commercial buildings, according to recently published official Chinese statistics.
During the past few years, importation of lumber has grown at a faster pace than that of log imports with the share of lumber of the total import value having gone up from 35 % in 2010 to 42 % in the 2Q/13. The import volumes has almost tripled in four years with Russia and Canada having been the two major suppliers of softwood lumber, together accounting for almost 80% of all lumber imported to China in the 2Q/13. European sawmills have not had a major presence in the Chinese wood market but this is changing. In June of this year, European shipments accounted for over eight percent of the total lumber imports to China. It can be expected that more containers of lumber will find their way from Europe to China in the coming years.
The Chinese log import market, which once was completely dominated by Russia, has evolved the past four years to a more diversified group of supplying countries, as reported in the Wood Resource Quarterly. New Zealand has become the largest softwood log supplier to China, Russia’s presence has diminished, and the US and Canada currently supply 25 % of all logs imported to China. Russia’s log exports to China are likely to continue to decline, but there will likely be opportunities for Russian sawmills to increase their shipments in the future.
Global pulpwood and timber market reporting is included in the 52-page quarterly publication Wood Resource Quarterly (WRQ). The report, established in 1988 and with subscribers in over 30 countries, tracks sawlog, pulpwood, lumber and pellet prices, trade and market developments in most key regions around the world. To subscribe to the WRQ, please go to www.woodprices.com
Wood Resources International LLC
Hakan Ekstrom
Wood Resources International LLC (WRI), an internationally recognized forest industry-consulting firm established in 1987, publishes two quarterly timber price reports and have subscribers in over 30 countries. The Wood Resource Quarterly, established in 1988, is a 52-page market report and includes sawlog prices, pulpwood and wood chip price and market commentary to developments in global timber, biomass and forest industry. The other report, the North Americam Wood Fiber Review, tracks prices of sawlogs, pulpwood, wood chips and biomass in most regions of Canada and the US.
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