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Last week (March 15-21), China’s log import price index maintained a steady upward market. The weekly index reported 1092.98 points, up 6.33 points from the previous week, or 0.58%, and the week’s sales increased by 2.39% from the previous month, and the transaction volume increased by 7.32%.

The three major markets both rose and fell. Among them, Guangdong Yuzhu and Sichuan Great Southwestern Weekly Index rose 1.27% and 0.96% respectively, while Shanghai Furen Weekly Index fell slightly by 0.72%.

The overall performance of imported logs and hardwoods in China last week is still remarkable, especially the increase in price level has given operators strong business confidence.

Taking the Guangdong market as an example, prices for teak and African red sandalwood logs  rose to varying degrees this week. In particular, African red sandalwood rose by 7.32% month-on-month. The average price is now 2820 yuan/cubic meter (EUR 364.26/m3).

It is reported that the price of African red sandalwood logs in Zhangjiagang market has risen again by 200-300 yuan/cubic meter (EUR 26-39/m3) recently due to the continued shortage of upstream sources of supply.

As for China’s imported softwood market, under the influence of the imbalance between supply and demand, the price index of white pine and Pinus sylvestris also showed signs of increase this week. Among them, the price index of white pine in Southwest Sichuan increased by 1.61% month-on-month, and the average transaction price was 1898 yuan/ cubic meters (EUR 245/m3) ; the price index of Pinus sylvestris rose by 1.21% month-on-month, and the average transaction price was 1880 yuan/cubic meter (EUR 243/m3).

Compared with the previous week, there was an increase of 20 yuan per cubic meter (EUR 2.6/m3). The trend of low domestic volume and increasing prices has also increased the enthusiasm of timber merchants to cover their positions. With the gradual increase in market demand, the Pinus sylvestris market has also become active again, and the enthusiasm of timber merchants to order new products has also increased. At present, the CIF price of Pinus sylvestris log is reported to be around 115-125 Euro/m3.

After a strong pull up last week, the sawn timber index this week closed down due to lack of support. It fell 0.77% to close at 897.11 points, including the Yuzhu sawn timber index, the Southwest sawn timber index, and the Nankang sawn timber index. They rose by 0.24%, 4.71%, and 0.09% respectively; the Furen sawn timber index fell by 3.35%.

Fundamentally, thanks to the good news from the exports markets, the sawn timber market still maintained a relatively hot trading atmosphere last week, and the overall volume was basically the previous week. However, in terms of prices, the representative varieties of the Furen market last week fell more and rose less, which directly dragged down the sawn timber market index.

Among them, the price index of African white wood fell by 0.18%, and the transaction price closed at 4630 yuan/cubic meter. Some industry insiders pointed out that last week’s decline in the prices of individual lumber species is only a short-term adjustment in the market. Taking into account the continuous increase in import costs, it is expected that the short-term market price of sawn timber is more likely to rebound.

In other markets such as the Yuzhu Market, the price index of teak rose 2.73%, and the transaction price closed at 22,600 yuan/cubic meter (EUR 2,919/m3) , an increase of 600 yuan/cubic meter (EUR 78/m3) from last week; the sapele price index fell slightly by 0.12%, and the transaction price closed at 6140 yuan/cubic meter (EUR 793/m3).

Last week, the wood-based panel index bottomed out and closed at 893.54 points, up 1.71%. The major market indexes rose across the board, among which the Yuzhu wood-based panel index and the Furen wood-based panel index rose by 0.19% and 0.12% respectively; the southwestern wood-based panel index and the Linyi wood-based panel index rose 4.79% and 1.03% respectively.

The post China: Prices for imported logs rising fast in March appeared first on Timber Industry News.