US Dollar Exchange Rates of 29th Sep 2010
China Yuan 6.6874
Report from China
China¡¯s timber consumption anticipated to increase
According to Zhang Jianlong, deputy administrator of the
State Forestry Administration, China¡¯s total timber
consumption will increase from 457 million cu.m in 2009
to 477 million cu.m for 2010, and the need for timber
imports for domestic consumption will grow from 100
million cu.m to 150 million cu.m per year in 2010. Zhang
Jianlong pointed out that the growing need for timber
cannot be met only by importing more. It is urgent to
promote domestic timber supply, allocate land areas for
wood and timber production and improve forest
management, he added.
According to the latest national forest inventory, China¡¯s
total forest cover is 1.9 billion hectares accounting for
20% of the total land area, with a 13.7 billion cu.m
standing wood stock volume. China¡¯s total area of
plantation is the highest in the world, making up 38% of
the global total.
In recent years, China¡¯s forest resources have been
increasing due to large scale reforestation efforts,
conversion of agricultural land to forests and through the
implementation of the Natural Forest Protection
Programme.
According to the National Plan for Conservation and
Utilization of Forest Land (2010-2020), domestic
consumption of timber and wood products will grow
rapidly in line with social and economic development. The
plan also addresses how to increase China¡¯s forest area in
the future. According to the plan, China¡¯s forest area will
reach 223 million hectares and standing wood stock 15.8
billion cu.m by 2020.
Shandong forestry enterprises in foreign countries
The implementation of Shandong Province¡¯s strategy to
establish business activities abroad is reportedly
progressing. According to the statistics from Shandong
Forestry Bureau, some 17 forestry enterprises from
Shandong Province have been setting up businesses in
foreign countries for logging, timber processing and
establishing forest plantations. These enterprises have
rented or purchased a total of 3.5 million hectares of
forests with 400 million cu.m of standing wood stock,
which is four times more than the total provincial forest
resources.
Zaozhuang Mining Industry Group invested US$200
million to buy forests with 1.6 million cu.m of standing
wood stock in Canada and to build a timber downstream
processing base in Rizhao City. Yangxin Eurasia
Woodwork Company rented a forest area with 1.2 million
cu.m of standing wood stock while Yantai Northwest
Forestry Co. Ltd rented forest area with 45,000 cu.m, both
in Russia. In Gabon, Shangdong Longsheng Group
acquired a concession with 450,000 cu.m of standing
wood stock. Shandong Sun Paper Industry Co. Ltd rented
forests with a total of 99,900 cu.m standing stock from
South East Asian countries such Laos to initiate pulp and
paper production.
The expansion of Shandong forestry sector seems to
continue as more and more enterprises are showing
interest to invest in foreign forestry resources, capital and
technologies. In 2007, there were 21 Shandong¡¯s
enterprises participating in field visit to Russian forest
resources. In March 2010, 8 enterprises took part in the
Investment and Trade fair held in Russia for Shandong
downstream timber enterprises.
Shandong Forestry Bureau has established cooperation
with Russia, Japan, Indonesia and Australia to facilitate
and provide information for enterprises to invest in foreign
countries.
Cost of Chinese furniture in US market
According to Chinese furniture industries, furniture
exports will be greatly affected by the changes in the US
Formaldehyde Standards for Composite Wood Products
Act, which stipulates hardwood plywood, particleboard
and MDF sold in the US must meet a formaldehyde
emission standard of 0.09 parts per million by January 1,
2013.
As a result, furniture enterprises will have to use E0 panel
instead of E1 panel to produce their products which will
increase the costs of furniture manufacturing by 20%, says
a spokesman of Zhejiang furniture industry.
Wood-based panel imports from Thailand pick up
According to the statistics from Ningbo Entry-Exit
Inspection and Quarantine Bureau, in the first seven
months of 2010 wood-based panel imports from Thailand
through Ningbo Port were 60,000 cu.m worth US$21
million. Thailand tripled its wood-based panel exports
over the same period in 2009, making up 38% of the total
wood-based panel imports through Ningbo Port.
There were 3 major enterprises which imported each
15,000 cu.m of rubber wood panels in Ningbo district.
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