Chilling Temperatures Cool China’s Log Demand!

"Severe Winter Weather Hampers Construction Activity in China, Raises Concerns over Log Supply"

Log demand in China has remained steady throughout November and early December, but the recent drop in temperatures towards the end of December has caused a slowdown in construction activity. This decrease in activity has had an impact on log sale prices, which have increased due to market concerns about reduced supply from New Zealand. Currently, China’s softwood log inventory stands at approximately 2.4 million cubic meters, with a daily port off-take of around 60-70 thousand cubic meters per day.

The severe cold weather conditions have forced sawmills in Northern China to close this week. These extreme weather conditions have made it impossible for the sawmills to operate efficiently and safely. Additionally, sawmills in Southern China are planning to close early for the upcoming Chinese New Year.

These closures will further impact the log supply in China, potentially leading to a tightening of the market. This could result in higher log prices in the near future. The current CFR (Cost and Freight) sale price for A grade pine logs…

John O Mahony

John O Mahony

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