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China Wood Products Prices

16-31th March 2014


US Dollar Exchange Rates of  26th March 2014
China Yuan 6.2108

Report from China 


 Raw material prices dip as growth slows
Industrial output in China fell during the first two months
of this year following a pattern of the past few years but an
improvement is expected during the second quarter.


Early in the year factory output fell and the real estate
market was weaker than a year ago in some sectors which
is leading some analysts to lower forecasts for Chinas
growth. This negative assessment has also been fuelled by
declining industrial production, retail sales and
investment.


The gradual slowing of growth in China has already led to
some slippage of mineral prices and other raw materials
including timber.

The impact of the slowing economy has had a noticeable
effect on exchange rates. The yuan fell below 6.20 to the
US dollar in mid March, the first major fall since early last
year.


While the current weakness in the yuan has a lot to do
with the strategy of the Central Bank which began
allowing the currency to move in a wider band than
recently the weakness comes at a time when investors are
reassessing risks in the Chinese economy.

Better prospects for retail sales going into second
quarter

The National Bureau of Statistics has published retail sales
data for the first two months of 2014 showing sales of
consumer goods grew by 11.8% year-on-year.

Retail sales of consumer goods in urban areas in the first
two months of 2014 were up by 11.7%, but February sales
slipped from levels in January. In rural areas retail sales
were up 12.8% year-on-year.


In terms of different sectors, catering service sales in the
first two months grew by 9.6%, year-on-year while sales
of goods was up 12.1% year-on-year.


For the full report see:
http://www.stats.gov.cn/english/PressRelease/201403/t201
40314_524633.html


100 million rural residents expected to migrate to cities
by 2020

Data from the National Bureau of Statistics shows that
investment in real estate development in the first two
months of 2014 was up a nominal 19.3 percent year-onyear.
Investment in residential buildings expanded by
18.4% accounting for 68.2% of all real estate.


In the first two months of this year real estate investment
in eastern region was up 19%; the increase in the central
region was 21.5% while that in the western region was up
almost 18%.


Looking at the area of floor space under construction, in
the first two months of the year there was an increase of
16.3% year-on-year of which, residential building
construction was up by 13.5 percent.

In the first two months of this year the area of land
purchased by real estate development enterprises totalled
40.62 million square metres, a year -on-year increase of 6.5
percent, the second month of year on year declines.


Media reports highlight the sheer scale of real estate
developments underway in China. One of the largest
developments is being undertaken in Guiyang where some
150 square kilometres of property floor space will be built
over the next three years.


This development is just one planned in anticipation of
massive urbanisation as up to 100 million rural residents
are expected to migrate to the cit ies by 2020.

Lackluster sales of commercial buildings
In the first two months of 2014 the area of commercial
buildings sold fell with the office building sector falling
8%. However, the area of other buildings sold for business
use increased 8.4 percent.

In terms of area, sales of commercial buildings in the
eastern region fell 6% year-on-year decrease of 6.0; in the
central region sales increased slightly while in the western
region sales by area of floor space dropped almost 25%


See the following for the full analysis:
http://www.stats.gov.cn/english/PressRelease/201403/t201
40314_524631.html


2013 trade in wood products
According to the latest statistics from Chinas Customs the
value of the national wood products trade in 2013 was
almost US$126 billion, a year on year increase of 6
percent. Of the total, imports value rose 4 percent to
US$63.43 billion, exports value grew 9 percent to
US$62.56 billion.

Log imports dominated by softwoods
Chinas log imports totalled 45.16 million cu.m valued at
US$9.317 billion in 2013, up 19 percent and 28 percent
respectively over 2013. The average landed price for
imported logs was US$206 per cubic metre.


Of the total, coniferous log imports amounted to 32.93
million cu.m, or 73 percent of all log imports, a year on
year increase of 23%. Last year New Zealand replaced
Russia as the main log supplier to China.


Hardwood log imports totalled 12.23 million cu.m, a year
on year increase of 9% in volume. Tropical log imports
rose 7 percent to about 9.33 million cubic metres,
accounting for 21 percent of all hardwood log imports.
The value of tropical log imports grew 22 percent to
US$3.571 billion.


Chinas imports fro m Russia fell 8 percent but imports
from Ukraine, Myanmar, US, Australia, France and New
Zealand increased sharply as can be seen in the table
below.

Diversification of sawnwood sources intensifies
Sawnwood imports totalled 24.04 million cu.m in 2013
and were valued at US$830 million in 2013, up 16% in
volume and 24% in value on the previous year. The
average price for imported sawnwood was US$284 per
cubic metre.


2013 imports of sawnwood came from a number of
countries. Russia (29%), Canada (28%) and the US (11%).
The pace of sawnwood imports from Sweden, Finland,
Chile, Philippines and Thailand was significantly higher
than in 2012.

Specialty plywood imports drop further
While the plywood sector in China has been continued to
expand in recent years on the back of strong domestic
demand high quality plywood is still imported but have
been falling in recent years as domestic manufacturers
improve quality.


Plywood imports were 154,700 cubic metres valued at
US$103 million in 2013, down 13 percent in volume and
13.75 percent in value fro m 2012. Ch inas plywood
imports in 2013 came from Malaysia and Indonesia which
together accounted for 71 percent of all imported plywood.


Other wood-based panels are imported also. Fibreboard
imports amounted to 156,200 tonnes, valued at US$101
million in 2013, up almost 8 percent in volume from 2012
levels. The main fibreboard suppliers to China were
Thailand, Malaysia, Romania and Germany.


Particleboard imports totalled 381,400 tonnes valued at
US$ 128 million in 2013, up 8 percent in volume and 9
percent in value from 2012. The main countries supplying
particleboard to China were Germany, New Zealand,
Switzerland, Belgium and Australia.


Pace of paper pulp and waste paper imports largely
unchanged

China paper pulp imports totalled 16.85 million tonnes,
valued at US$ 11373 million in 2013, up 2 percent in
volume and 4 percent in value from the previous year and
came mainly from Canada, Brazil, Indonesia, the US and
Chile.


Waste paper imports in 2013 totalled 29.24 million tonnes
valued at US$ 5930 million, down 3 percent in volume
and down 5 percent in value from 2012. The waste paper
supplier countries to China were the US, Japan, England,
Canada and Holland.

Chinas total imports of paper, paperboard and paper
products in 2013 amounted to 2.97 million tonnes valued
at US$4374 million, a year on year decline of 9 percent in
volume and 5 percent in value.


Paper and paperboard imports alone amounted 2.85
million tonnes, valued at US$3700 million in 2013, down
9% in volume and up 5% in value from the previous year.
The main paper and paperboard supplier countries to
China were the US (708,600 tonnes, 25 percent) and
Sweden (366,300 tonnes, 13 percent).


Booming wooden furniture imports
China imported a total of 7.38 million pieces of wooden
furniture in 2013, valued at US$708 million, up 16 percent
and 19 percent respectively over the last year.


Vietnam, Thailand and Indonesia supply wood chips
Wood chips imports in 2013 totalled 9.16 million tonnes
valued at US$1554 million, a year on year increase of 21
percent in volume and 17 percent in value. The main wood
chip suppliers to China were Vietnam (4.64 million
tonnes, 51 percent), Thailand (1.45 million tonnes, 16
percent), Australia (1.42 million tonnes, 15 percent) and
Indonesia (1.20 million tonnes, 13 percent).


Plywood exports to US fall sharply
Plywood exports totalled 10.26 million cubic metres,
valued at US$5034 million in 2013, up 2 percent in
volume and 5 percent in value from 2012. The average
unit price for exported plywood in 2013 was US$490 per
cubic meter, a year on year increase of 3 percent.


Chinas plywood was exported main ly to the USA
(1,346,800 cu.m, 13 percent), Japan (815,500 cu.m, 8.0
percent), South Korea (771,440 cu.m, 7.5 percent) and UK
(650,300 cu.m, 6.3 percent). Chinas ply wood e xports to
the US fell 18 percent to 1.35 million in 2013 compared to
levels in 2012.


Fibreboard exports totaled 2.37 million tonnes, valued at
US$1597 million in 2013, down 7 percent in volume and 4
percent in value respectively from last year. The average
unit price for exported fibreboard was US$675 per cubic
metre, a year on year increase of 2 percent.


Mongolia and Russian markets for export
particleboard
Particleboard exports totalled 169,800 tonnes, valued at
US$88.36 million in 2013, up 26 percent in volume and 40
percent in value respectively from 2012.


The average unit price for exported particleboard was
US$520 per cubic metre, a year on year increase of 11
percent. Ch inas partic leboard was e xported main ly to
Russia and Mongolia.


Wooden furniture export post modest rise
Chinas wooden furniture e xports in 2013 were valued at
US$12.38 billion, a year on year rise in value of 4 percent.
Chinas wooden furniture were ma in ly e xported to the US
(US$3,984 million, 32 percent), Japan (US$745 million, 6
percent), UK (US$581 million, 4.7 percent), Australia
(US$476 million, 3.8 percent) and Germany (US$373
million, 3.0 percent).

Abbreviations

LM        Loyale Merchant, a grade of log parcel  Cu.m         Cubic Metre
QS         Qualite Superieure    Koku         0.278 Cu.m or 120BF
CI          Choix Industriel                                                       FFR            French Franc
CE         Choix Economique                                                        SQ              Sawmill Quality
CS         Choix Supplimentaire      SSQ            Select Sawmill Quality
FOB      Free-on-Board     FAS            Sawnwood Grade First and
KD        Kiln Dry                               Second 
AD        Air Dry        WBP           Water and Boil Proof
Boule    A Log Sawn Through and Through MR              Moisture Resistant
              the boards from one log are bundled                      pc         per piece      
              together                      ea                each      
BB/CC  Grade B faced and Grade C backed MBF           1000 Board Feet          
              Plywood   MDF           Medium Density Fibreboard
BF         Board Foot F.CFA         CFA Franc        
Sq.Ft     Square Foot               Price has moved up or down

Source: ITTO'  Tropical Timber Market Report

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