FEA Update: China softwood log inventoriesFriday 11 Aug 2023 China’s Softwood Log Inventories at Ocean Ports.FEA industry sources in China report that softwood log inventories at the country’s main ocean ports totaled 3.71 million m³ on July 29, down 15% (-670,000 m³) from the previous month, as follows: • Radiata pine log inventory volumes from New Zealand and South America reached 2.62 million m³, down 10% from a month earlier and comprising nearly 71% of overall log inventories (versus 67% in late June). • North American Douglas-fir and hemlock log volumes were 460,000 m³, down 25% from late June and accounting for 12% of overall log stocks (versus late June’s 14%). • European spruce log volumes were 420,000 m³, down 31% from late June and comprising 11% of overall log inventories. • Softwood log inventories from other countries (Japanese sugi, European red pine logs, etc.) amounted to 210,000 m³ (-9%).
In July, average daily sales at ocean ports were estimated at 72,500 m3, versus 69,200 m3 in July 2022 and 71,800 m3 in July 2021. Given the prolonged period of low prices and significant losses, combined with fewer new arrivals due to conservative purchasing in previous months, some large traders with large stocks held back volumes in attempts to raise prices in wholesale markets and avoid selling at lower levels. These strategies proved highly successful, leading to panic buying by processing mills. Mills with minimal inventories began buying extra volumes for their own stock, fostering a rapid drop in log inventories and an equally fast rise in log wholesale market prices during the month—up RMB 50–120/m3 at Taicang and RMB 100–160/m3 at Lanshan.
For more information on FEA’s China Bulletin where this data is reported monthly, please click here, or contact Matt Robertson at mrobertson@getfea.com Source: FEA |
Copyright 2004-2024 © Innovatek Ltd. All rights reserved. |
