Strong demand for wood in China in the second half of 2016 has resulted in record high imports of softwood lumber and logs.

“China imported record-high volumes of softwood lumber in 2016 and softwood log imports reached their second highest level on record,” said Wood Resource International (WRI).

“Despite relatively pessimistic forecasts for wood demand early in 2016, China’s need for imported wood picked up during the summer and fall.

“Import volumes of both logs and lumber were up about 20% in the fourth quarter of last year compared to the same period in 2015.”

Total importation of logs and lumber (in roundwood equivalents) reached almost 76m cubic metres (cbm) in 2016, which was up 17% from 2015, and almost 38% higher than five years ago.

Over the past decade, the importation of softwood lumber has grown much faster than that of softwood logs, according to the Seattle-based consultancy.

From 2006 to 2016, lumber imports were up from just over 2m-cbm to over 21m-cbm, while log import volumes were up from 20m-cbm to 34m-cbm during the same period.

“From 2015 to 2016, Russia has increased its shipments of lumber to China by over three million to a total of 11.6m-cbm,” said WRI.

“With lumber markets in the Middle East and Northern Africa and Europe having been relatively weak the past few years, many sawmills in the Nordic countries have increased their presence in the Chinese market with shipments being up over 35% in 2016 from the previous year.”

WRI said although lumber supply from Finland and Sweden still accounts for only 6% of the total lumber imports, the share can be expected to increase in the coming years because of more intense marketing of predominantly higher-quality spruce lumber for the Chinese furniture, millwork and construction industries.

Import values for lumber into China rose during most of 2016 with average prices in December 2016 about 6% higher than a year earlier.

The lower-cost lumber has consistently been from Russia and Canada, while the cost for lumber from Europe and Chile has been higher than the average prices, which have ranged between $160-180 per cbm in 2016, said WRI.

(Source: tradewindsnews.com/)