Log inventories are at very low levels (but have not increased in price)
Demand for logs in China remains stable, but stocks are at an extremely low level.
Data show that China's inventory of radiant logs continues to decrease and is currently about 1.7 million cubic metres, while the total inventory of coniferous timber is about 2.7 million cubic metres, which is at a very low level.
The current volume of China's port commitments remains within the range of 65,000-70,000 cubic metres per day. This is still within the normal range.
According to past market performance, when the inventory level is far below 4 million cubic metres, it will trigger a sharp rise in the price of radiata pine logs, but this year's market is very different - in October, the CFR price of A-grade logs is still maintained in the range of 110-117 U.S. dollars per JASm3.
This point also shows that the current radiata pine market is in a downturn.
