Due to the shortage of containers and heavy snow in Europe from January to February, after the price increase at the beginning of the year, orders in China of spruce logs of around 120 euros per cubic meter were delayed in delivery.
The strong demand from local sawmills in Europe and the decline in harvesting from January to February, the supply of logs from forests in March is still limited, and it market insiders estimate that it will not gradually recover until April at the earliest.
And because the shipping price in March/April is not expected to be lowered, the recent new price of German spruce logs at Chinese timber markets is still in the 118-128 Euro/m3 CIF price range.
Log demand in China is strong due to a busy construction season, while supply has been constrained. Since December there has been a 15% increase in CFR sale prices for logs in China with increases in ocean freight costs of up to 40% in this same time. Log demand in China is expected to remain strong until productivity drops in their very hot summer period.
The post Europe’s log supply to China is expected to return to normal after April appeared first on Timber Industry News.