Slowing Construction Dampens China's Lumber Imports

China achieved record softwood log and lumber imports in 2011, despite a slowing in China's construction sector and a subsequent drop in fourth quarter imports.

The value of log and lumber imports increased 57 percent to reach US$8 billion, Wood Resource Quarterly reported. China now leads the world in softwood log and lumber imports.

Fourth quarter imports declined 14 percent from the third quarter, because of reduced domestic demand and high inventories at many of the country’s ports. The decline followed seven consecutive quarters of increased imports. Year over year, the fourth quarter 2011 result was still up from the fourth quarter 2010.

China's monetary policy in the first half of 2012 will continue to squeeze the country's housing market, the report said. As a consequence, the prospects for log and lumber imports are uncertain in the short term, but will likely continue to grow over the long term.

Photo shows a Canadian Canfor instructor in China. Courtesy of Canfor, a Vancouver-based lumber company that exports product to China.