India continues to face Covid-19 issues and is currently a much smaller market for logs than previously.
There was a temporary shortage of logs when much of the supply was diverted to China. This meant log suppliers from New Zealand did see better returns than log supply to China for a short time until supply and demand balanced again.
There are five shipments of logs scheduled for Kandla in August, three from Uruguay and two from New Zealand. The price for the Uruguay logs is usually about 10 USD per m3 below the price for New Zealand pine. Due to the log shortage at Kandla, lumber prices are firm at INR 521 per CFT.
Some Gandhidham sawmills have started working at 60% capacity. Labourers are being brought back from East to West by airplanes, as trains and buses are not operating.
Since European spruce grade 6 kiln dried lumber is also quoted high at 225 to 240 USD levels, kiln dried lumber price will increase.
As Southern Yellow Pine (SYP) kiln dried timber prices shot up in US, SYP logs are now in short supply from US to India. Shippers are asking higher prices and Indian buyers are sitting on the sidelines.
Log demand in Tuticorin is satisfied with container volume from New Zealand and South Africa.
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