China's demand for imported softwood lumber stalled in the first quarter of this year as the country's real estate sector continues to struggle. However, North American suppliers continue to capture greater market share from European competitors.
Statistics from Trade Data Monitor show that China's total timber imports fell to 4.34 million cubic meters in the first quarter, a 2% decrease from the first three months of 2023. This small decline is a reversal from China's import growth of 4% in 2023.
Last year's growth ended more than a decade of steady and sometimes sharp declines in Chinese imports and gave traders optimism that the Chinese market is likely to grow at least moderately in 2024. However, China's construction industry has not recovered from the downturn as quickly as some analysts had hoped.
In the first quarter of this year, Canadian lumber exports to China jumped to 370,287 cubic meters (157 million board feet), a year-on-year increase of 19%. Statistics Canada's export statistics show shipments through March were 154 million cubic feet, down 17% year-over-year in 2023.
U.S. exports to China rose 42% in the first quarter and maintained growth momentum after rising 35% for all of 2023 compared with 2022. Through March, its volume reached 175 million board feet.
In the first quarter of this year, China's imports from Europe fell 22% to 962,660 cubic meters (408 million cubic feet). Shipments in Europe grew 13% last year. A Red Sea shipping crisis disrupted shipping from Europe to most Pacific Rim destinations in the first quarter of this year. Many observers expect longer shipping times and rising costs to be an ongoing factor.
However, Russia also increased exports to China in the first quarter. Shipments reached 2.7 million cubic meters, 5% more than in 2023. In the first quarter of this year, Russia accounted for 63% of China's total imports, up from 59% in the first three months of 2023.
The absence of trade sanctions between Russia and China and the shared border between the two countries facilitate rail transport could put Russia in a good position to displace European products in the Chinese market.(source:wood365.cn)
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