China will receive more and more spruce from European forests, which are currently destroyed by storms and bark beetles.
However the logs are transported by container. Due to insufficient demand for Chinese products by European consumers, there are currently few European containers.
When European consumers’ demand for Chinese products increases, the volume of containers will increase and the supply of spruce will resume.
Global demand for wood products may take longer than China’s domestic demand to recover. If China’s domestic demand does not increase substantially, then with the increase in global log supply, inventory levels will rise rapidly.
However, as countries around the world get rid of their lockdowns and their economies will recover, we are also keenly seeing the increase in global log supply relative to the demand for wood products. Currently, global log supply growth seems to be faster than demand, but this situation may soon change.
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