Article archive

China Customs has reported log imports in the first quarter of 2026 totalled 7.16 million cubic metres valued at US$1.169 billion, down 11% in volume and down 14% in value compared to the first quarter of 2025. The average price for imported logs was US$163 CIF per cubic metre, down 3% from the same period of 2025.

Of total log imports, softwood log imports dropped 11% to 5.17 million cubic metres, accounting for 72% of the national total. The average price for imported softwood logs declined 4% to US$122 CIF per cubic metre compared to the same period of 2025.

Hardwood log imports fell 13% to 1.99 million cubic metres and accounted for 28% of the national total. The average price for imported hardwood logs declined slightly to US$270 CIF per cubic metre compared to the same period of 2025.

Of total hardwood log imports, tropical log imports reached 1.06 million cubic metres valued at US$262 million CIF, down 13% both in volume and value from the first quarter of 2025. Tropical logs accounted for 15% of China’s total log import volume during the quarter.

The average price for imported tropical logs was US$246 CIF per cubic metre, down just 0.2% from the same period of 2025.

China’s log imports in Q1 2026

Source: China Customs

China’s log imports by value in Q1 2026

Source: China Customs

Average CIF log prices in Q1 2026

Source: China Customs

Weak construction and furniture demand weigh on imports

Weak downstream demand remained the main factor behind the decline in imports. China’s real estate sector continued to slow, with reduced new housing construction weakening demand for construction timber, particularly softwood species such as radiata pine and spruce. Activity in the furniture and home decoration industries also remained subdued, reflecting weak consumer demand and reducing purchasing activity across the wood processing sector.

Macroeconomic and logistical factors also disrupted trade flows during the quarter. The Spring Festival period in February 2026 temporarily halted activity as factories closed, contributing to a 31% decline in traded log volumes during the holiday period. Maritime transportation disruptions and port scheduling adjustments further affected supply chains and delivery schedules. Many processing enterprises also focused on reducing inventories and avoided large-scale purchasing.

The decline in imports reflected both weak domestic demand and tightening global supply, while the market has started to show signs of reduced availability combined with firm prices.

Imports from major suppliers decline sharply

Imports from several major suppliers weakened significantly during the quarter. Log imports from New Zealand, China’s largest supplier, fell 7% as weak demand and high prices reduced purchasing of radiata pine. Imports from Papua New Guinea, the second-largest supplier, declined sharply during February 2026. Shipments from the United States dropped 56% year-on-year, becoming one of the biggest contributors to the overall decline in imports. Imports from the Solomon Islands also fell 33% compared to the first quarter of 2025.

Some suppliers recorded gains. Imports from Japan increased 11% while shipments from Latvia rose 14%, although these increases were insufficient to offset declines from larger suppliers.

Major log suppliers to China in Q1 2026 (volume)

Source: China Customs

Major log suppliers to China in Q1 2026 (value)

Source: China Customs

New Zealand shipments weaken amid weak Chinese demand

New Zealand remained by far the largest supplier of logs to China in the first quarter of 2026. Imports from New Zealand totalled 3.886 million cubic metres valued at US$445 million, down 7% in volume and 13% in value year-on-year. The average CIF price for New Zealand logs declined 11% to US$115 per cubic metre. New Zealand accounted for 54% of China’s total log import volume during the quarter.

China’s slowing property sector continued to reduce demand for construction timber. Real estate investment in China fell by more than 10% in 2025, while downstream sectors including construction and furniture manufacturing remained weak in early 2026. Infrastructure activity also slowed, limiting demand for softwoods, especially radiata pine.

Supply-side costs in New Zealand also increased sharply. Higher fuel prices raised harvesting and transportation costs, while geopolitical tensions in the Middle East contributed to rising energy prices globally. Heavy rainfall in New Zealand’s North Island damaged infrastructure and disrupted transport conditions, limiting the movement of logs during the first months of 2026.

Structural changes in New Zealand’s forestry strategy also affected exports. The country is increasingly promoting domestic value-added processing rather than raw log exports and plans to increase domestic wood processing capacity by 25% by 2030. New Zealand is also expanding exports to alternative markets such as India as trade ties strengthen under the India-New Zealand free trade agreement.

Exchange rate fluctuations, rising freight costs and weaker price competitiveness in China further reduced demand for New Zealand logs. The report noted that the decline reflected both short-term market weakness and longer-term restructuring of global log supply chains.

German log exports to China continue to collapse

China’s log imports from Germany continued to decline sharply in the first quarter of 2026. Imports fell 60% year-on-year to 88,693 cubic metres, pushing Germany from eighth to eleventh place among China’s suppliers.

Germany’s export availability has been reduced significantly following the depletion of damaged timber inventories created by bark beetle infestations and drought over recent years. Previously, logs harvested from damaged forests represented more than half of Germany’s annual log production and exports, helping stabilise supply and prices. Those inventories have now largely disappeared.

The German Wood Industry Federation has described the current situation as a structural timber shortage. Sawmills in many regions are facing low inventories and insufficient deliveries, placing growing pressure on small and medium-sized enterprises.

Germany has also increasingly prioritised domestic and intra-EU demand following the Russia-Ukraine conflict and changes in European construction activity, leaving less material available for export.

At the same time, prices for German spruce and pine logs surged to record highs. During the first two months of 2026, China’s imports of logs from Germany declined 60% year-on-year while average prices increased 26%.

Weak Chinese demand further affected imports of German logs. Slower housing construction and weaker property transactions reduced demand for imported construction timber, especially softwood species such as spruce and fir.

Trade policy changes within Europe also influenced supply conditions. Some Eastern European countries, including Poland, introduced policies encouraging greater domestic processing of logs, indirectly reducing export volumes available to China.

The report concluded that China’s declining imports from Germany reflected a combination of supply shortages, high prices, weak Chinese demand and wider restructuring of global supply chains. Chinese timber companies are increasingly diversifying procurement channels in response to ongoing market uncertainty.

Main softwood log suppliers to China in Q1 2026

Source: China Customs

Main hardwood log suppliers to China in Q1 2026

Source: China Customs