In early 2020, due to oversupply, the declining prices made European lumber producers more globally competitive. In March this year, China imported more lumber from the Nordic countries than from Canada, the first time on record.
It is reported that in 2019 and early 2020, timber prices fell across Europe, mainly because of huge volumes of damaged timber. Due to lower raw material costs, the prices of European wood producers have become more competitive globally, especially in Finland, Sweden and Germany.
Among these three countries, Sweden and Finland, the two Nordic countries, have increased their overseas supply market share in China, increasing by 11% to 22% in the past five years.
In recent years, Germany and Sweden have also become the largest overseas lumber suppliers to the United States. In the first quarter of 2020, Sweden and Finland, were the third and fourth largest lumber suppliers in the Chinese market, after Russia and Canada.
At present, the coronavirus pandemic is present all over the world. Many sawmills have been shut down. Canada has more shutdowns than Finland and Sweden.
Therefore, in March 2020, China imported more lumber from the Nordic countries than from Canada-this is the first time on record.
This trend may continue in the second quarter, as Northern Europe adopted a more relaxed pandemic prevention and control policy, ensuring that local sawmills can re-employ more employees to increase production.
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