LUMBER PRICES TUMBLE AS CHINESE DEMAND FALLS

China , Construction Materials , Economic Indicators , Lumber , Negotiating with Suppliers , Uncategorized , Yuan Jan 21, 2016 No Comments

 

NEGOTIATOR’S TAKE:  Wooden pallets and crating are ripe for re-negotiation because of lower lumber prices.

 

01.20.16 – Slowing of housing construction and re-modelling the cause

Lumber prices are down nearly 30% in the past 12 months as housing construction and remodeling in China have slowed due to the country’s tightening economy.  The value of Chinese imports in November totaled $498 million, down 26% year over year and down from an all-time high of nearly $900 million in April of 2014.

Log prices are also down about 30% from their April 2014 level and are now at their lowest level since early in 2009, according to the monthly Wood Resources International report.

 

Import prices have declined almost 30% in only 12 months

According to Wood Resources: “The reduction in house construction in China has resulted in a substantial decline in the importation of forest products during 2015…the total value of imported softwood logs and lumber has fallen 25% and import prices have declined almost 30% that past 12 months.”

 

Read the rest of this ProPurchaser sourced article, HERE.

 

SOURCE: 24/7 WALL ST
ARTICLE AUTHOR: Paul Ausick, Senior Editor – Follow Paul on TWITTER; on GOOGLE+

Adam

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