In July 2025, daily log demand in China has fallen to levels typical of peak summer when construction activity slows due to extreme heat, reports PF Olsen. Demand now stands at about 50,000 m3 per day.
Softwood log inventories have risen 4% month-on-month to approximately 2.7 million m3. CFR prices for A-grade logs arriving in China this July range from $113 to $117 per JASm3. Supply from New Zealand remains below average as wet weather and storms continue to disrupt harvesting.
Storms in the Tasman region caused windthrow across 4,000 hectares. Although salvage operations are expected, steep terrain and a single-berth export port in Nelson will limit volumes compared to previous post-cyclone responses.
Softwood log imports from Europe dropped 59% in the first half of 2025, down 1.14 million m3 from the same period in 2024. Strong prices persist, but buyers face margin pressure from weak demand and high raw material costs.
At Wharf Gate (AWG) prices for New Zealand export logs rose only 1 NZD per JASm3 in July, as currency shifts offset higher CFR prices.
