Recently the Chinese government announced a reduction on a wide range of import tariffs effective from November 1, 2018. Import tariffs for wood and paper products were reduced from 6.6 percent to 5.4 percent in order to grow these imports. There is sawn timber starting to accumulate in some China ports, especially the northern ports and down to Shanghai, where inventory levels reached historic lows in August. Historically, increased winter supply and the Chinese New Year causes inventory volumes to rise over the next few months.
Demand For Sawn Timber Remains Strong
Most wood processors refer to the domestic market as balanced. Europe and the US continue to have strong demand for clear sawn timber. These markets have been strong all year. The Australian market is heading for oversupply in framing and treated sawn timber as more supply arrives from Europe. The European market is oversupplied for framing. It is interesting to note the European demand for clear sawn timber is strong- yet they are oversupplied for framing, according to interest.co.nz.
