China: Imports Buoyed by Softwood Log Demand

Soaring raw material prices and reduced inventory characterize China’s wood products industry in 2021. Domestic timber production is forecast to increase 10 percent in 2021 to 95 million cubic meters (m3) due to a larger logging quota and robust demand. Wood-based paneling production is forecast to increase 11 percent this year to 310 million m3, driven by growing domestic and international demand. China’s overall wood product imports are expected to increase slightly in 2021 due to low inventory and strong demand, in particular for softwood logs. Likewise, overall wood product exports are expected to increase due to rising international demand. China’s revised Forest Law includes an illegal timber ban that may help level the playing field for timber exporters, although the impact of the law will depend on the implementation regulations currently under development.