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China Wood Products Prices

16-31th August 2014


US Dollar Exchange Rates of  25th August 2014
China Yuan 6.
1551

Report from China 


 

 China implements green construction action plan
Recently China began to implement a „green construction
action plan‟ which requires, by 2015, 20% of new town
construction to meet the requirements of green building
standard. It is estimated that China's urbanisation rate will
increase from 54% in 2013 to 60% by 2020.


The „green construction action plan‟ is one element of the
government‟s "China National New Type Urbanization
Plan" prepared to meet the challenges of urbanization.


To meet the demand for urban housing China plans to
build 100 „green‟ ecological urban demonstration zones.
Low income housing built by municipalities will take the
lead in the implementation of green building standard.


In particular some 400 million square metres of housing in
China‟s Northeast will be reformed for energy saving. The
forecast pace of urbanisation will create a steadily
expanding demand for wood products and the „green
construction action plan‟ is expected to result in higher
wood consumption per square metre of completed
housing.


Zhangjiagang Port acts to prevent ebola
On 19 August Zhangjiagang Port authorities began a
programme to eliminate the risk of the Ebola virus
entering China. A shipment of logs from Ebola affected
African regions was quarantined.


In order to protect dock workers strict measures have been
introduced. Quarantine officers follow strict guidelines for
disinfection of imported timber from Ebola affected
countries which requires:


 Imported timber from affected countries will not
be released until disinfected.


 All containers will be disinfected and inspected.


 All on-site staff and workers must wear gloves
and other protective equipment.


 If animal carcasses are found in the shipment
additional protection measures will be applied.


As the animal host of the disease is not completely clear
Chinese authorities are acting to eliminate all animals in
timber shipments.


At present the port quarantine staff use methyl bromide or
sulfuryl fluoride fumigation treatment of containers from
African ports.


Workers from Greater Khingan Mountains relocate
overseas

Since logging in the Greater Khingan Mountains was
stopped in April some forest workers have begun to create
opportunities outside the forestry sector while others have
taken their skills overseas. Recently, 1600 workers from 9
forest bureaus relocated to Russia to work in the forestry
sector.

Some Chinese companies from the Greater Khingan
Mountain region have relocated entire processing plants
overseas or have started to sell or rent out processing
equipment. In addition to moves to Russia workers and
companies are beginning to relocate to S. America and
Africa.


Furniture exports from Heilongjiang collapse
According to the statistics from Heilongjiang Customs, in
the first half of 2014 the value of furniture and furniture
parts exports fell 76% to yuan 880 million. This rapid
decline is a direct result of the halt to timber extraction in
most of the province.


The main features of the first half 2014 furniture export
trade in Heilongjiang Province are summarised below.


 The value of furniture exports by private
enterprises in Heilongjiang Province fell to yuan
840 million and comprised 96% of provincial
total furniture exports.

 Furniture exports to traditional market fell but
grew in emerging market.


In the first half of 2014, the value of Heilongjiang‟s
furniture exports to ASEAN fell 73%, exports to the EU
fell over 75% and at the same time exports to the US
declined 54% while exports of furniture to Russia fell
25%. The value of furniture exports to ASEAN, EU, US
and Russia accounted for around 70% of total provincial
furniture exports.


In addition to exports to traditional markets the value of
furniture exports to Angola rose 4.3 times to yuan 70
million, to Nigeria exports grew 41% to yuan 20 million
and exports to Senegal increased 5.6 times to yuan 20
million.


Timber processing in Shandong Province
Shandong province has extensive forest resources as well
as a vibrant wood processing sector.


Output from the wood processing industry currently
accounts for about 50% of the total provincial output
value. Development of the wood-based panel sector
dominates the sector and most enterprises have advanced
processing equipment.


The wood processing industries in Shandong fall into the
following main categories: veneer, particleboard,
fibreboard, plywood, furniture, wooden door and flooring
production.


It has been reported that the value of output from the wood
processing industry in Shandong Province in 2013 totalled
yuan 268.6 billion accounting for around 13% of the total
national output from the wood processing industries.


There are 2,754 timber processing enterprises in
Shangdong of which 1,639 are wood-based panel
enterprises and the individual value of output from around
half of these enterprises is more than yuan 5 million
annually. In addition to the wood processing sector,
Shandong Province is well known for its woven wicker
products.


US and EU log imports dominate business at Tianjin
Port

According to statistics from Tianjin Customs, log imports
through Tianjin Port in the first half of 2014 were 1.156
million cubic metres valued at yuan 1.28 billion, up 46%
in volume and 46% in value from the same period in 2013.
The main features of log imports through Tianjin Port in
the first half of 2014 are summarised below.


 log imports by state-owned enterprises rose 46%
to 576,000 cubic metres,
 log imports by private enterprises grew 25% to
497,000 cubic metres,
 imported logs through Tianjin Port were mainly
from the US and Europe,
 imported logs from the US rose 23% to 469 000
cubic metres,
 imported logs from European countries grew 1.4
times to 199 000 cubic metres,
 log imports from the US and EU accounted for
57% of all log imports through Tianjin Port in the
first half of 2014.


Chinas plywood exports expand
According to the latest data from China Customs, plywood
exports between January and July totaled 6.78 million
cubic metres valued at yuan 20.5 billion, up 16% in
volume and 15% in value from the same period in 2013.
China‟s plywood exports in July alone were 1.09 cubic
metres valued at yuan 3.3 billion, up 17% in volume and
17% in value from the same month in 2013.


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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