Ecuador: Chinese timber exports show "high initial, low later" trend, already signed RTA with the U.S.A!

In recent years, the recovery in Ecuador's construction sector has provided a positive boost to the timber industry. Official data shows that, stimulated by multiple housing mortgage policies, construction sales in the country grew 20.5% year-on-year in the first quarter of 2026. During the same period, Ecuador's timber exports to China increased by 46.4% compared to the previous year, marking a significant growth rate.

Customs data shows that in the first quarter of 2026, China's cumulative timber imports from Ecuador reached 36,000 cubic meters, a year-on-year increase of 46.4%, with import value reaching $8.93 million, up 43.1% year-on-year. During this period, the average import price of timber declined slightly by 2.3%.

By month:

January: imports reached 15,400 cubic meters, up 66.2% year-on-year; average price decreased by 10% year-on-year;

February: imports reached 15,100 cubic meters, up 268.7% year-on-year; average price decreased by 19.2% year-on-year;

March: imports reached 5,500 cubic meters, down 50.9% year-on-year; average price increased by 22.4% year-on-year.

Market analysis shows that China's timber imports in January and February increased by 66.2% and 268.7% year-on-year, respectively, indicating explosive growth; however, in March, imports dropped sharply by 50.9% year-on-year, shrinking to 0.55 million cubic meters for the month.

This sharp fluctuation, characterized by a high initial phase followed by a decline, may reflect instability in Ecuador's supply, bottlenecks in international logistics, and temporary saturation of domestic demand for this timber species in China.

Notably, Ecuador and the United States previously signed a Reciprocal Trade Agreement (RTA). Under the terms of the agreement, the U.S. has restored Most Favored Nation (MFN) tariff treatment to specific Ecuadorian products, eliminating previously imposed additional tariffs.

Some forestry products have been included in the tariff reduction list, with the tariff rate on plywood—accounting for 51% of Ecuador's forestry exports to the United States—lowered from 18% to 8%. This is expected to boost overall forestry exports from Ecuador to the U.S., offsetting potential trade barriers faced by other forest products.

However, as the construction industry in Ecuador recovers, timber companies are also facing multiple operational challenges, with pressures accumulating across all stages.

On the supply chain side, companies face shortages of timber suppliers, and the considerable distance between plantations and processing plants increases raw material acquisition costs while making timely supply difficult to guarantee. Additionally, persistent heavy rainfall directly affects logging and processing operations, further constraining production capacity.

On the cost side, rising fuel and raw material prices, combined with additional transportation expenses due to logistics distances, have collectively increased overall operating costs for enterprises, significantly pressuring profitability.

Ecuadorian timber companies suggest that the government should strengthen policy support to help businesses expand into overseas markets and increase exports of timber and wood products.

On the supply chain side, companies call for establishing a supplier selection mechanism based on legal logging permits to ensure compliance and traceability of raw materials. They also recommend that industry players develop multiple plantation-based harvesting sites to enhance the stability and resilience of raw material supply, thereby reducing dependence on single sources.

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