US Dollar Exchange Rates of 11th
August 2011
China Yuan 6.3862
Report from China
Growing timber deficit expected to impact domestic timber
prices
It has been reported that China¡¯s log imports rose to 34.35
million cubic metres in 2010 doubling from the 17 million
cubic metres imported in 2001. This rate of growth of
timber imports is expected to continue.
It has been estimated that China¡¯s overall timber deficit
could grow to over 180 million cubic metres (roundwood
equivalent) by 2015. However, with the international
supply of commodity wood products falling and with
rising domestic demand there will be a strong upward
pressure on timber prices in the Chinese market.
Raw materials for traditional style furniture in short supply
The China National Forest Products Industry Association
(CNFPIA) has recently reported that manufacturers of
traditional furniture are finding it difficult to secure
supplies of timbers such as sandalwood and ebony.
These species are the main raw materials for traditional
style furniture. The declining availability of these timbers
will affect production of high-end classical furniture in
China.
National Forest Certification Standard to be launched in 2013
During the 4th Annual International Conference on
Sustainable Forest and Market Development held recently
in Shanghai it was revealed that China will launch the first
national forest certification standard for sustainable forest
management in 2013.
Zhang Yanhong, Deputy Director of the Department of
Development Planning and Capital Management of the
State Forest Service (SFA) said in an effort to eliminate
illegal logging it is necessary to adopt an effective forest
certification standard.
It was reported that the SFA is working to develop China¡¯s
forest certification standard based on those of the FSC and
Rainforest Alliance.
When implemented the system could be used to trace the
entire supply chain, tracking timber and timber products
from forest to mills, to manufacturers and traders and to
end-users.
Imported Russian log prices reach a record high
According to the statistics from Manzhouli Customs, in
the first half of 2011 log imports were 3.812 million cubic
metres valued at US$530 million, up 12 percent in volume
and 40 percent in value from the same period in 2010. The
average price for imported logs rose 11 percent to
US$138.4 per cubic metre.
Log imports through Manzhouli Port in the first half of
2011 were all from Russia and the average price for
imported logs in June reached record highs, climbing 14
percent to US$148.9 per cubic metre; these logs are
imported mainly by private enterprises.
The demand for log raw materials in China is massive and
growing and much of this demand can only be satisfied
through imports. The gap between domestic timber supply
and demand will continue to grow.
Observers suggest that more efficient logging practices
and improved distribution could reduce the timber deficit.
Other suggestions to secure the necessary raw materials
include providing incentives to enterprises to invest in
overseas forest production thus diversifyin the source of
imports. In addition there is a need to raise the level of
processing efficiency so as to maximize recovery.
Zhangjiagang Port established as the number one port
for tropical log imports
Timber imports have been the leading business at
Zhangjiagang Port since 1982 and imports through the
port have grown rapidly in recent years. In the first 7
months of this years log imports through the port totaled
1.6 million cubic metres valued at US$360 mil.
The imported logs came from 36 countries, mainly from
Cameroon, D. R. Congo, Congo Brazzaville, C.A.R,
Gabon, Malaysia, Myanmar, Papua New Guinea, Solomon
Island, Surinam, Guyana, some European countries and N.
America. Tropical log imports through the port rose 44
percent this year.
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