KUCHING: China has reduced by double digits the imports of tropical and softwood logs in 2023, and paid much cheaper average prices for such logs from exporting countries.
Log imports in 2023 totalled 38.03 million cubic metres (cu m) valued at about US$6.38 billion, down 13 per cent in volume and 25 per cent in value as compared to that of 2022.
Year-on-year, the average price for imported logs was US$168 (cost, insurance and freight (CIF)) per cu m, a decline of 14 per cent on 2022 levels, according to China Customs data reported by International Tropical Timber Organisation (ITTO) Tropical Timber Market Report (February 1-15, 2024).
New Zealand was, once again, the top supplier of logs to China in 2023, accounting for 47 per cent of the national total, an increase of six percentage points from 2022. China’s log shipment from New Zealand reached almost 18 million cu m valued at US$2.21 billion, up two per cent in volume but down 18 per cent in value year-on-year. The average price for imported logs from New Zealand was US$123 (CIF) per cu m, down 19 per cent on 2022 level.
“The volume of log imports from Germany and Russia in 2023 declined sharply, dropping 40% and 27% year-on-year to 3.59 million cu m and 1.61 million cu m respectively. These declines were the main reason for the overall decline in log imports in 2023.
“Germany ranked second for log imports to China in 2023, making up 9% of the national total, down 5 percentage points from 2022. The average price for imported logs from Germany was US$160 (CIF) per cu m, down 7% on 2022 level,” said the report.
On the other hand, China’s softwood log imports from Japan and Poland surged 26 per cent to 1.41 million cu m and 106 per cent to 1.1 million cu m respectively and the average imported log price was US$120 (CIF) per cu m from Japan and US$151 (CIF) per cu m from Poland and cheaper by 20 per cent and 10 per cent respectively as compared to that of 2022.
“Japan’s log exports to China are on the rise and one end-use for some of these imported logs is for the manufacture of coffins. China’s Cao County in Shandong Province has a virtual monopoly in the production of coffins from milled Japanese logs. Coffins produced in Cao County account for around 90% of the coffins shipped to Japan.
“The wood processing industry in Caoxian county has a good future and the annual output from wood processing reached around RMB50 billion in 2023.”
The ITTO report said Poland began to export logs after the Polish State Forest Service decided in 2017 to lift the log export controls. After the severe storms in Poland in 2017, the authorities there were unable to properly dispose of nearly 10 million cu m of wind-blown forests, so they turned to the export markets.
Of China’s total log imports in 2023, softwood logs fell 10 per cent to 28.1 million cu accounting for 74 per cent of the national total imports. As compared to 2022, the average price for the imported softwood logs was down by 16 per cent to US$134 (CIF) per cu m.
Hardwood log imports in 2023 dropped by 20 per cent to 9.93 million cu m, with average price of US$264 (CIF) per cu m, down seven per cent from 2022.
Of total hardwood log imports, this comprised 5.71 million cu m of tropical logs valued at about US$1.52 billion (-8% in volume and 19% in value from 2022) and accounted for 15 per cent of the national total log import volume in 2023. The average price for imported tropical logs in 2023 was US$265 (CIF) per cu m, down 12 per cent from 2022.
“Papua New Guinea (PNG) was the largest supplier of hardwood logs to China in 2023. China’s hardwood log imports from PNG fell 3% to 2.268 million cu m valued at US$483 million, down 12% year -on-year. The average CIF price for hardwood log imports from PNG in 2023 fell 9% compared to the levels in 2022.
“China’s hardwood log imports from Russia were 1.613 million cu m valued at US$197 million, down 24% in both volume and value in 2023. The average CIF price for hardwood logs from Russia fell 1%.
“Over 60% of the national total log imports are from four countries, namely PNG (23%), Russia (16%) Solomon Islands (15%) and USA (8%),” according to China Customs figures. Hardwood log imports from USA slipped seven per cent to 781,000 cu m valued at US$444 million, down four per cent from 2022.
Year-on-year, China’s hardwood log imports from Brazil, France and Germany plunged 50 per cent, 40 per cent and 16 per cent respectively.
