Outlook and Analysis of Log Market in the NE in 2014

By CnAgri2014-02-21 14:22:58 Print

In 2013, cuttings and sales tasks of NE logs have both been completed and the price slightly rose, which was driven by heating real estate industry. Without long distance transportation in the surroundings of NE, NE logs have price advantages, which guarantees its excellent sales. The other reason for the quick sales is inadequate supply, which can be mostly consumed in NE areas. Though NE logs slaes task has been finished, its proportion in the total log sales is negligible and the gap is expanding.
　　　
There are many reasons that caused shrink of NE log market. In domestic, firstly, it is caused by the developing of baning cutting policy. According to statistics, totally 871,789 cubic meters timber was produced by Heilongjiang Forestry Department in 2013 with sales of 867,849 cubic meters. As for imported logs, it registered 41.0898 million cubic meters in the first eleven months of 2013, up 18.22% from the same period last year. The gap between domestic logs and imported logs is obvious. Due to complete ban of cutting in Xinanling, it is inevitable that NE log supply will slump, which makes it’s hard for NE market to resume its competitiveness. Secondly, NE market shrink is caused by missing of price advantage. With continuous decline of supply, NE log price has kept increasing in recent years. And the transportation cost is more stunning in recent years, resulting NE log loses its competitive edge in southern markets. And with market shrink, it si hard to find NE logs in southern markets. Besides, NE sawn timber also suffers from the same plight. Merchants speak outright that NE timber has no competitiveness without price advantage. Therefore, NE timber shall see more severe challenges.

　　　In abroad, NE timber was hit by logs from New Zealand, Russia and America. Due to significant decline of NE log supply, log from New Zealand, Russia and America get a great opportunity in China. With quality and price advantages, logs from those countries are favored by downstream market rapidly. Logs imported from New Zealand increased 33.28% in 2013 from 2012, increasing 9.2689 million cubic meters from 2007, becoming the largest log exporter in China. It is caused by Russia controlling log export, significant increase of taxes and longer transporting distances.
　　　
Under pressure from both domestic and abroad, NE log market keeps shrinking. In 2014, NE log market shall still face the dilemma and may be more severely challenged.(from China Wood Info.)

From “China Wood Market Monthly Report”