Continued increases in demand for wood raw-material from sawmills, plywood plants and pulp mills in China has pushed domestic log prices upward and many Chinese companies are increasingly exploring the opportunities of importing more logs and wood chips to supplement the domestic fibre sources, according to the Wood Resource Quarterly.

The tight log supply has resulted in higher prices for domestically sourced logs this year.
Chinese fir sawlogs prices were almost 17% higher in the 2Q/10 as compared to the same quarter in 2009.)

Eucalyptus logs, mainly used by the pulp industry, have also become more expensive the past 12 months, reaching new record-highs.

The continued high costs of locally sourced logs have resulted in higher volumes being imported so far this year. During the first eight months of 2010, the total imports of softwood and hardwood logs were up 23% compared to the same period in 2009.