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.