Warehouses are quite full at the moment. Stock levels of log wood amount to 4.4 million m³, which is more than the usual 4 million m³. 1.6 million m³ are stored in the sawn timber warehouse in the port of Taicang, which is an all-time high.
High stock levels and a weaker demand have generally led to a lower price level in China. By contrast, rising prices are recorded with high-quality sawn timber.
All Czech containers controlled
Big Chinese importers received warnings regarding Czech log wood from government agencies. For phytosanitary reasons, every Czech container is currently opened in Chinese ports,” explains Guo. This practice costs importers an additional 4 to 5 €/m³. “As a result, importers are very careful when it comes to shipments from the Czech Republic. This could have repercussions on all shipments from Europe.” Since more than 90% of the European log wood is used in the construction sector after being cut, there were hardly any quality-related problems.
Controls politically motivated?
The warnings about Czech goods could have political reasons. During his recent visit to Taiwan, Czech President of the Senate Milos Vystrcil said in an address given in Taipeh: “I am a Taiwanese.” This prompted Chinese Foreign Minister Wang Yi to say that “the country is going to pay a heavy price for its short-sighted behavior”.