The large decline in the hardwood log average FOB price is the result of the sharp fall in the price of “redwoods”. Imports of “redwoods”species fell sharply in the 2Q of this year and prices responded to falling demand.
In the first half of 2015 “redwoods” log imports were 370,700 cubic metres valued at $458 million, a year on year decline of 64% in volume and 68% in value. The average FOB price for “redwoods” logs fell 11% to $1,237 per cubic metre.
Redwood sawnwood imports amounted to 59,500 cubic metres valued at $107 million, down 51% in volume and 52% in value.
If the impact of the decline in “redwoods”prices is eliminated then neither import volumes nor prices for hardwood logs fell but actually increased. The average FOB price for imported hardwood log was at its lowest in April when “redwoods”prices crashed but began to recover in May and in June.
After the decline in imports in February of 2015 due to the long Chinese Spring Festival holidays, hardwood log imports recovered but then remained flat for the rest of the first half year.
Of the imported hardwood log species in the first half of this year, North America hardwood log imports rose 67% despite to overall decline in total US log imports. The average FOB price for North American hardwoods fell 21%. Oak imports grew 30% but the average FOB price fell 13%.
Okoume imports increased 6% but the average FOB price fell 15% but teak imports fell 72% and the average FOB price fell 16%. Ash imports fell 39% but the average FOB price increased 6%.