US Dollar Exchange Rates of
10th
May
2023
China Yuan 6.93
Report from China
Decline in China’s log imports
According to China Customs, log imports in the first quarter of
2023 totalled 9.27 million cubic metres valued at US$1.606 billion, down 7%
in volume and 18% in value compared to the first quarter 2022. In addition,
the average price for imported logs was US$173 (CIF) per cubic metre, down
12% from the same period of 2022.
Of total log imports, softwood log imports rose slightly by 1% to 6.72
million cubic metres, accounting for 72% of the national total. However, the
average price for imported softwood logs fell 16% to US$146 (CIF) per cubic
metre over the same period of 2022.
Hardwood log imports dropped by 24% to 2.55 million cubic metres, accounting
for 28% of the national total. The average price for imported hardwood logs
fell 12% to US$245 (CIF) per cubic metre over the same period of 2022.
Of total hardwood log imports, tropical log imports were 1.54 million cubic
metres valued at US$385 million CIF, down 14% in volume and 32% in value
from the same period of 2022, accounting for 17% of the national total
import volume.
The average price for imported tropical logs was US$251 CIF per cubic metre,
down 20% from the same period of 2022.
After abandoning its COVID policy in December last year the economy has been
recovering but at a rate much slower than expected. China's imports
contracted sharply in April (-8%) while exports grew at a slower pace of
8.5% compared to 14.8% in March.
Major log suppliers
New Zealand and Germany were the largest and the second largest
suppliers of log imports to China in the first quarter of 2023. The
proportion of China’s log imports from these two suppliers accounted for
over 50% of the total log import volume. China’s log imports from New
Zealand rose 13% to 3.78 million cubic metres but from Germany fell 24% to
1.17 million cubic metres.
China's imports of Russian logs have fallen sharply, largely due to the
conflict between Russia and Ukraine. China’s log imports from Russia fell
38% to 460,000 cubic metres in the first quarter of 2023.
Surge in log imports from Poland
China’s log imports from Poland surged to 330,000 cubic metres in
the first quarter of 2023. The forests of Poland were hit by severe storms
in 2017. Nearly 10 million cubic metres of logs were blown down. A large
volume of fallen logs have been harvested and exported to China. China’s log
imports from Poland have been increasing since 2017. China’s log imports
from Poland in 2018 surged over 700%.
Decline in CIF prices for log imports
CIF prices for softwood logs, hardwood logs and tropical log
imports fell 12%, 16%, 12% and 20% in the first quarter of 2023.
Imports of softwood logs were relatively stable in the first quarter of 2023
while imports of hardwood logs declined significantly and log prices fell.
With the gradual recovery of logistics, ports and roads across the country
the accumulated stocks in the country are now being delivered. Analysts
suggest second quarter log prices will remain steady.
After the partial reduction of import tariffs in 2022 the overall cost of
logs is expected to decline and become stable which will further reduce the
cost pressure on manufacturers.
Decline in tropical log imports
China’s tropical log imports fell 14% to 1.537 million cubic metres
in the first quarter of 2023.
The top three suppliers of tropical logs to China
were Papua New Guinea (45%), Solomon Islands (27%) and the Republic of Congo
(10%). 82% of China’s tropical log imports were from these three countries
in the first quarter of 2023.
China’s tropical log imports from PNG, Solomon Is. and the Republic of Congo
grew 2%, 3% and 88% to 693,000 cubic metres, 416,000 cubic metres and
152,000 cubic metres respectively in the first quarter of 2023.
Increase in CIF price for tropical log imports from DRC
While tropical log import prices generally declined the CIF price
of China's tropical log imports from DRC increased 42% in the first quarter
of 2023. In addition, CIF prices for China’s tropical log imports from
Suriname rose 8%.
The largest decline in log CIF prices was the 20% drop for log imports from
the Republic of Congo.
 
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