OREANDA-NEWS. December 12, 2011. According to Customs statistics from Manzhouli Port, during the period January to October log imports through Manzhouli Port were 6.22 million cubic metres valued at USD 890 million, up 17% in volume and 31% in value from the same period in 2010. All the imported logs were from Russia, ITTO reported.

Business in this area is dominated by log imports. Imports by the so called ‘petty trade’ amounted to 6.03 million cubic metres, up 17% and 97% of the total. Just 2% of the log imports were by endusers and only 1% of the logs were imported by general traders.

Private enterprises were the main logs importers. Log imports by private enterprises amounted to 6.11 million cubic metres, up 21% on the same period last year and accounted for 98% of the total.

Mongolian enterprises were the dominant importers handling 6 million cubic metres of logs. Only 2% of the logs were imported for use by Heilongjiang enterprises. The rest of logs were for use by manufactures in Beijing and Liaoning.

Analysts say the main reasons for the increase in logs imports is because demand for timber in the domestic market is increasing while at the same time domestic timber production is decreasing due to the further implementation of Natural Forest Protection Programme (NFPP).

Another factor is that the size and quality of imported logs is better than that of domestic logs. In addition, prices for most imported logs are lower than that of domestic logs as the RMB has continued to appreciate.