Chinese demand for logs is bouncing back, with China taking 60,000 cubic metres of softwood from its ports daily. That is according to PF Olsen’s log market report, which said lower shopping costs (relative to past years) and a weaker NZ dollar have provided a lifeblood for New Zealand exporters, who remain heavily reliant on China for trade.
However, “Quarter 2 is shaping up as a more difficult quarter with shipping costs increasing and the NZD strengthening against the USD,” according to Scott Downs, Director of Sales and Marketing for PF Olsen: “Log exporters cannot obtain price increases in China to cover these increased costs. Indeed, market prices seem to be softening.”
“The CFR (or cost and freight) price for logs is softening with a widening price range achieved by exports,” Mr Downs said: “Towards the end of Match, more exports are selling A-grade logs in the range of 115-117 per JASm3 – with very recent reports of two exporters offering 113 USD per JASM3 for A-grade logs.”
Scott Downs, Director of Sales and Marketing for PF Olsen:
The increase in demand, which has seen log inventory at the port reduce to 3.7 million cubic metres, has come at a time when China’s economy is showing early signs of recovery. The Caixin China General Manufacturing PMI—which measures manufacturing productivity—rose to 51.2 in March 2025, up from February’s 50.8, surpassing expectations of 51.1.
“This marked the highest reading since last November, accelerating output growth due to a sustained rise in new orders amid improved demand conditions,” according to Trading Economics, which reports foreign sales have grown the most over the year. “Firms boosted their buying levels in response to a renewed rise in stock purchases.”
The new data comes weeks after Wood Central first reported that Chinese authorities had suspended all trade of American logs amid fears of a bark beetle and longhorn beetle infestation in shipments at the port.
China’s General Administration of Customs said the decision, effective March 4, will prevent the spread of harmful organisms and protect China’s forestry and agricultural industries as per the Biosecurity Law of China, the Entry-Exit Animal and Plant Quarantine Law, and international phytosanitary measures. In December, more than 173,000 cubic meters of logs were traded between the United States and China, making China the United States’ second-most important market for logs.
