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June 1, 2020

Sawmills in China slowed down or stopped production in May due high costs of imported logs

Sawmills in China slowed down or stopped production in May due high costs of imported logs
  • In March import prices in China had picked up despite total log inventory still building to over 8 million m3 when including the significant volume also on vessels. These price increases defied economic sense as inventory was still high, and demand was uncertain. It appears this demand was driven purely by concerns about global log and sawn timber supply, as manufacturing and construction recommenced in China.

The same day the Covid-19 lockdown was announced in New Zealand, market prices for logs in China increased by +RMB150.

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