China: Surge in North America log cost

Wednesday 12 Sep 2018

Traders in China are complaining that the landed cost of imported North American logs has jumped by around 30% as a result of the depreciation of RMB and the trade frition between China and the United States.

Although shippers in the US have been lowering log prices to maintain market share in China the higher costs continue to be a major challenge to Chinese importers. The reason behind this is that, even with price reductions, landed costs are still higher than previously which means competitiveness in the domestic market is weakened and traders are losing out to alternative timbers.

At present, the price for grade A processing general materials (2-4m) North America hemlock and fir in the Guangdong market is between RMB1680-1760 per cubic metre. The price for grade A processing general material (2-4m) southern pine is between RMB1580-1660 yuan per cubic metre.

Source: ITTO TTM Report

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