US Dollar Exchange Rates of 14th Sep 2010
China Yuan 6.6442
Report from China
Timber imports through Zhangjiagang sea port post robust growth
Timber imports through the Zhangjiagang sea port during the first half of 2010 totalled 1.79 million cu.m, worth US$504 million. Timber imports increased by 21% in volume and 53% in value over the same period in 2009. Of the total, 61,000 cu.m were imported in containers which is 82% more compared the same period last year. Imported logs through the Zhangjiagang port accounted for 33% of the total logs imported to Jiangsu Province and 11% of total imports in China. Out of the total timber imports through the Zhangjiagang port, some 8,600 cu.m were sawnwood imports.
Hardwood timber imports by origins
Imports from Oceania continue to decline
In the first half of 2010, imports from Oceania through the Zhangjiagang sea port amounted to 693 800 cu.m of logs, down 7% from the same period last year. However, the decrease of imports from Oceania through Zhangjiagang resulted mainly from allocation of imports through other ports in Jiangsu Province. Total imports of logs from PNG through Jiangsu Province reached 1,131,600 cu.m and imports from Solomon Islands amounted to 693,600 cu.m, up 51% and 54% respectively.
Imports from Africa post strong gains
Imports of African logs through the Zhangjiagang sea port totalled 803,000 cu.m during the first half period of 2010. Log imports increased by 22% in volume over the same period last year.
Imports from Southeast Asia soar
Some 280,700 cu.m of logs were imported from Southeast Asia in the first half of 2010, a 282% jump over the same period last year. The main reason for a sharp increase in Southeast Asian log imports was the large amount of small diameter logs imported from Sabah Malaysia. Log imports from Myanmar also increased significantly.
Tropical timber selling prices remain sluggish
During the first half of 2010, monthly imports through the Zhangjiagang sea port exceeded 300,000 cu.m except in March. However, tropical timber selling prices in the Zhangjiagang sea port remained at low levels, despite higher FOB prices and ocean freight costs.
According to an analyst, timber demand for furniture and house decoration was dull during the period keeping timber prices down in the Zhangjiagang port. In addition, timber transportation along the Yangtze river was affected by security measures imposed on the Shanghai World Expo.
Growing timber demand from rural housing sector
According to a recent field survey “Farmers’ preferences for wooden construction materials”, 85% or 1,455 out of 1,709 interviewed households from 12 provinces, expressed their preferences for the use of wooden materials in house interior improvement and decoration.
The survey shows that 9 wooden doors and 192 square metres of flooring are required for each house in Sichuan Province, while in other provinces 6-7 doors and 50-70 square metres of flooring are required for each house. Only 36% or 615 households responded that wooden construction materials required are available in local market places.
According to the survey, some 20 million households in the countryside are going to build new houses. The estimated average cost of a house is RMB100,000, hence some RMB1.99 trillion investments in the house building sector in rural areas are envisaged. The report also reveals that about 1 billion square metres of houses and public buildings are under construction in rural areas, with a total investment of around RMB1,000 billion.
Forest cover expands in Guangxi Region
According to the Eleventh Five Year Plan for the Guangxi Autonomous Region, some 10,000 hectares of farmlands will be converted to other land uses each year, out of which 6,000 hectares must be converted to forests.
It is reported that during the period of the Tenth Five Year Plan, 390,000 hectares of forests were converted to residential areas. However, due to the measures taken by forestry authorities in Guangxi, net forest cover increased at the annual rate of 1.25%. The forest cover in the region reached 58% of the total land area in 2009, the third highest among the Chinese regions.
Large-scale eucalyptus plywood mill for Guangxi Region
Construction work of a large-scale plywood mill with a production capacity of 70,000 cu.m has been initiated by Donglin Wood Products Company Ltd in Cangwu County, Wuzhou City, Guangxi Autonomous Region. To date, 20,000 square metres of workshop, 3,000 square metres of worker dormitory and 1,000 square metres of office building have been constructed.
The company, which was established in 2000, is a plywood enterprise producing plywood for concrete frameworks as its main product. In 2009, the company’s annual output of plywood was 70,000 cu.m. The products include standard plywood products, fire-retardant (FRT) plywood, plywood for concrete framework and plywood for furniture.
The plywood mill under construction is estimated to consume over 100,000 cu.m of eucalyptus timber per year. The annual output value of the mill will be around RMB200 million and it is expected to create 1,200 jobs and generate RMB20 million in tax revenues annually for the local government.
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