ARBOR RESOURCES Ltd

  • Home
  • Heat/Drying Plant
  • Equipment for sale
    • Forklifts
    • Remanufacturing Plant
    • Vehicles
    • Yard
    • Misc Machinery
    • MISC FOR SALE
  • Sale Specials
  • Our Timber
    • Timber Standards
    • Timber Grades
    • Available stock
    • Affordable Outdoor Timber
  • About
    • About Us
    • Our Operations
    • Environment Policy
    • The Team
    • Why Pine?
    • Testimonials
    • Your Industry >
      • Your Industry
      • Architects, Engineers & Specifiers
      • Exterior Joinery & Construction
      • Furniture & Interior Joinery
      • Industrial, Pallets & Packaging
      • Health & Safety
      • Landscaping & Heavy Construction
    • Learn More >
      • NZ Pine Info >
        • Statistics
        • Area Planted
        • Plantations
        • Where Harvest Go
        • Forecasts
        • Useful Links
      • FAQs
      • Glossary >
        • Wood Terms
        • Shipping Terms
      • Videos
      • Downloads
  • Orders & Inquiries
    • Orders & Inquiries
    • Timber Exports Inquiry
    • New Zealand Domestic Sales
  • Blog
  • Contact Us
  • 联系我们
  • Blog
  • Home
  • Heat/Drying Plant
  • Equipment for sale
    • Forklifts
    • Remanufacturing Plant
    • Vehicles
    • Yard
    • Misc Machinery
    • MISC FOR SALE
  • Sale Specials
  • Our Timber
    • Timber Standards
    • Timber Grades
    • Available stock
    • Affordable Outdoor Timber
  • About
    • About Us
    • Our Operations
    • Environment Policy
    • The Team
    • Why Pine?
    • Testimonials
    • Your Industry >
      • Your Industry
      • Architects, Engineers & Specifiers
      • Exterior Joinery & Construction
      • Furniture & Interior Joinery
      • Industrial, Pallets & Packaging
      • Health & Safety
      • Landscaping & Heavy Construction
    • Learn More >
      • NZ Pine Info >
        • Statistics
        • Area Planted
        • Plantations
        • Where Harvest Go
        • Forecasts
        • Useful Links
      • FAQs
      • Glossary >
        • Wood Terms
        • Shipping Terms
      • Videos
      • Downloads
  • Orders & Inquiries
    • Orders & Inquiries
    • Timber Exports Inquiry
    • New Zealand Domestic Sales
  • Blog
  • Contact Us
  • 联系我们
  • Blog

Arbor Resources Blog Updates

​Chinese imports of softwood and hardwood wood products will be
significantly altered in 2022 if Russia’s log export ban is implemented
China is the world’s largest importer of softwood and hardwood logs, and for many decades,
Russia has been a significant log supplier for them. This relationship may change in 2022
if Russia implements their proposed ban on exports of softwood logs and valuable
hardwood logs, while also introducing export taxes on green lumber. All these policy
changes are designed to encourage increased domestic production of higher-valued forest
products.
The Russian parliament has not yet announced the final legislative proclamation, so it is
not clear if there will be a complete or phased-in ban, a significant export tax, or even the
possibility of a state-owned export monopoly. However, a signal has been sent to the
marketplace that Russia will no longer be a major supplier of softwood and hardwood logs.
One consequence of this decision is that Chinese wood manufacturers will need to explore
new long-term log supply regions.
In 2020, China imported almost 6.5 million m3 of logs from Russia, predominantly
softwood species. The trade was substantially less than in any year during the past two
decades. Nevertheless, Russia was still the largest supplier of hardwood logs to China in
2020 (more prominent than any other source of temperate or tropical logs) and the thirdlargest
supplier of softwood logs.
It is crucial to keep in mind that China has shifted from sourcing logs from Russia to
European suppliers the past few years as insect-infested timber in Central Europe has been
in temporary abundance. From 2018 to 2020, softwood log imports from Europe increased
from 1.3 million m3 to 12.3 million m3, while Russian-supplied logs fell from 7.8 million
m3 to 4.2 million m3. However, shipments from Europe are not sustainable long-term.
According to the just-released study by the consulting firms Wood Resources International
and O’Kelly Acumen (Russian Log Export Ban in 2022 - Implications for the Global
Forest Industry), China is expected to source more sawlogs from Oceania, Europe, and the
US short-term. Longer-term, the study anticipates that China is likely to shift further from
WRI Market Insights 2021
- a subscription service from Wood Resources International
Global Sawlog Markets
Wood Resources
International
importing logs to lumber, thus creating opportunities for lumber manufacturers, mainly in
Europe and Russia, to increase shipments to this growing market.
The excerpt above is from the just-released Focus Report “Russia Log Export Ban in 2022 –
Implications to the Global Forest Industry”, published by Wood Resources International LLC
and O’Kelly Acumen. For more information about the study or to inquire about purchasing the
60-page report in easy-to-read slide format, please contact either Hakan Ekstrom
(hakan@woodprices.com) or Glen O’Kelly (glen.okelly@okelly.se). A Table of Contents of the
report is available on our website. Click here!
Contact Information
Wood Resources International LLC
Hakan Ekstrom, Seattle, USA
info@WoodPrices.com

NZ logs trade change potential

2/8/2018

0 Comments

 
NZ log market 'nervy' over US-China trade stoush, says AgriHQ- New Zealand's booming export log market is starting to catch the jitters as concerns mount about the impact of US President Donald Trump’s trade war.

Demand for New Zealand logs has been strong over recent years as local sawmills compete with the export market to source logs for local construction, at a time when demand in China has stepped up after Asia's largest economy clamped down on the harvesting of its own forests and reduced tariffs on imported logs to meet demand in its local market. However, trade tensions between the US and China are creating nervousness in the market, as traders fear tariffs will hurt economic growth and dampen demand.

"Positivity has permeated the industry, at least for those selling logs, for upwards of two years," AgriHQ analyst Reece Brick said in his latest monthly report on the forestry market. "However it’s getting a bit nervy all of the sudden. That’s not to say everyone’s panicking, but there are certainly more reasons to frown than we’ve seen for a long- while.

"The export scene, along with the rest of the world, is trying to figure out what the outcomes will be of the tiff between the US and China. Economic growth data, stock exchange indices and foreign exchange rates have all made unfavourable movements in the past month, and there’s little sign that the relations between the two countries is on the mend."

Brick's comments about nervousness in the log market echo similar concerns noted by industry watchers in the dairy and wool industries recently, where demand is said to have weakened as buyers are concerned that tariffs on end products will flow back to dent demand for New Zealand commodities.

"If there’s a common enemy for NZ log traders it’s President Trump," said AgriHQ's Brick. "Another month of the US and China passing tit-for-tat trade tariffs is creating global economic uncertainty, understandably causing some nerves given log values are highly reliant on macro-economic strength."

The US and China this month imposed tariffs of 25 percent on US$34 billion of each other's exports and US tariffs on an additional US$16 billion of Chinese goods are coming soon. The US government also said last week it was readying new tariffs on Chinese goods worth an additional US$200 billion.

Brick noted the latest set of economic data out of China indicates the trade war is already impacting China’s economy, with second-quarter growth slowing to 6.7 percent, its slowest rate of growth in almost two years, and expectations for a further decline in the third quarter.

"The consensus in the market place is that the trade tension between China and the United States could cause an economic downturn," Brick said. "The International Monetary Fund condemned President Trump’s trade policy and advised governments to bulk up savings. The escalating trade tension may hinder global growth and delay foreign investments worldwide.

"The main issue is the nervousness that is reverberating throughout the globe, slowly rippling into NZ. Sentiment within the NZ market is mixed – the more risk averse are preparing for a drop beyond the short-term, while quite a few others are thinking this is a temporary, storm-in-a-teacup situation. Either way, no-one can be certain."

Forest products are New Zealand's third-largest commodity export group behind dairy and meat products. AgriHQ's monthly survey of exporters, forest owners and saw millers showed the average price for structural S1 logs in the New Zealand market edged up to $136 a tonne this month, from $135 a tonne last month, and marking the highest level since 1993. The average price for New Zealand A-grade export logs held steady at a four-year high of US$145/JAS.
0 Comments



Leave a Reply.

    Author
    ​FRANK T DAVIS 

    A SURLY AND CYNICAL OLD CURMUDGEON WITH A JAUNDICED VIEW OF THE POLITICAL ELITE .

    Archives

    March 2021
    July 2020
    February 2020
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    September 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016

    Categories

    All

    RSS Feed

PLEASE NOTE: ARBOR DOES NOT TRADE IN LOGS, ONLY SAWN TIMBER AND TIMBER PRODUCTS!

About
Our Timber
Your Industry
Timber Export
Learn More
Orders & Enquiries
Blog
Contact Us
© COPYRIGHT 2015 Arbor Resources Ltd. ALL RIGHTS RESERVED.