Reported from “China Building Material”, last year, driven by overheated investment in infrastructure, the material price such as steel, cement and non-ferrous metal appear rapid rise in the recent years, and the timber market price has also increased, but the increase rate is relatively low. After the Spring Festival this year, there happens abrupt change, and the import timber price has substantially risen. It reaches the peak at the end of the first quarter of this year and the beginning of the second quarter then decline rapidly. The main reason is the effect of international shipping instead of skyrocketing crash of international timber market prices.
As the overheating Chinese economy, a substantial increase in importing goods, and the demand exceeds supply of the international shipping business; lots of imported timber cannot transport to China on time. In addition, tense delivery capacity and rising fuel prices, resulting in the rapid rising of international shipping prices. However, Chinas timber imports based on CNF Price (0.05 + freight), thus it cause the upsurge of imported price. For example, per cubic meter Aoguman Logs rise from 205 U.S. Dollars to 235 U.S. dollars with a 15% rising extent. Liuan Logs from 130 U.S. dollars per cubic meter up to 170 U.S. dollars; Papua New logs from the 100 U.S. dollars per cubic meter up to 120 dollars, 20% increase; Pinus radiata logs from more per cubic meter increase in more than 60 U.S. dollars to 100 dollars, increases as high as 60%. It reflects that the species with low value can greatly effected by rising international shipping price.
Due to the rising situation of imported timber market, China Timber market has also appear the agitation of rising price, and some storage are competing buy. But this price base is not steadily. Because it is not caused by commodity value and the market supply and demand.
After April this year, the state has push forward a series of macro-control measures,
The overheated investment in infrastructure has been compressed. The price of building material such as steel and cement has significantly declined, the pressure on the transportation of materials imports also eased. Large quantities of imported timber have a heavy price when shipped, and the price has significantly declined.
As a part of China imported timber has surged up, however a number of timbers remain relatively stable and steadily appreciated. In Particular, some Russian timber has still keep the hard price with some extent rising. Generally speaking, on the first half of this year, the average purchase price of China s importing timber has a year-on-year increasing than last year.