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China Wood Products Prices

01-15th December 2014


US Dollar Exchange Rates of  10th December 2014
China Yuan 6.
1761

Report from China 


 

 Divergent views on revised timber processing license
system

China began to implement a timber processing license
system in 1986 and this has played an important role in the
rational use of domestic forest resources.


The timber processing license system in China is currently
being overhauled against the background of
decentralisation and the need to reduce bureaucratic
interference as well as to rein in government spending. A
new system has been piloted in Guangdong, Guangxi,
Shandong and Jiangxi provinces.


Recently the State Forestry Administration (SFA)
established a research group to assess the impact of the
new system in a few areas.


Two opposing views emerged from this analysis. One
view suggested that the previous timber processing license
system should be continued as the expansion of timber
processing enterprises after the change is out of control.


The study team found the layout, scale and technical
capacity of the majority of new processing plants built
since the easing of controls is inadequate. It was found that
most of the new processing enterprises were inefficient
users of raw materials, the added value was at a low level
and the enterprises do not meet the requirements for
energy saving and emission reduction and efficiency.


In addition, the weakening of the timber processing license
system has resulted in considerable pressure on domestic
forest resources. Because of the changes in the licensing
system the competent forestry authorities no longer had
authority over enterprise developments, supervision has
been lost and the rapid increase in the number of small and
inefficient mills is contributing to deforestation.


It has been reported that Guangdong Forestry Bureau has
unilaterally reversed the timber processing license system
because there were 3,951 cases of illegal harvesting and
transport of timber in 2013, a year-on-year increase of
50%.


On the other hand some analysts say the timber processing
license system should be completely abolished to be
replaced by a simplified system.


While views on the system differ one thing is certain say
analysts, the existing timber processing license system and
regulatory policy should be improved and reformed.

Significant rise in imports
In the first three quarters of 2014 China‟s log imports
totaled 48,359,000 cubic metres valued at USD9.34
billion, a year on year increase of 19% in volume and 37%
in value.


Softwood log imports rose 15% to 27,809,000 cubic
metres, temperate hardwood log imports grew 28% to
11,618,000 cubic metres and tropical log imports
increased 26% to 8,932,000 cubic metres.


The main suppliers of logs to China‟s the period January
to September 2014 were in Asia (1,961,000 cubic metres,
up 46%), Africa (2,736,000 cubic metres, up 6%), Europe
(3,622,000 cubic metres, up 34%), Australia (14,953,000
cubic metres, up 15%), North America (7,145,000 cubic
metres, up 17%) and Russia (8,564,000 cubic metres, up
10%).


The pace of growth of log imports from Asia was the
highest and growth of log imports from Laos, Japan,
Vietnam and Cambodia all exceeded 200% in the first
three quarters of this year.


During January to September 2014 sawnwood imports
were 19,123,000 cubic metres valued at USD604 billion, a
year on year increase of 9% in volume and 24% in value.
Softwood sawnwood imports rose 7% to 13,235,000 cubic
metres, hardwood sawnwood imports grew 14% to
5,888,000 cubic metres and tropical sawnwood imports
increased 12% to 3,524,000 cubic metres.


The main suppliers of sawnwood imports to China were
Asia (2,800,00 cubic metres, up 6%), Europe (1,548,000
cubic metres, up 21%), North America (7,145,000 cubic
metres, up 17%) and Russia (16,990,000 cubic metres, up
1.5%). The pace of growth in imports of sawnwood from
Europe was the highest with China‟s sawnwood imports
from Germany increasing 42%.


Redwood imports climb 10%
According to analysis of redwood imports released by the
Chinese Redwood Committee (CRC), between January
and October 2014, redwood imports were 1,850,000 cubic
metres a year on year increase of 10%.


Of the total, imported redwood from Southeast Asia
totaled 1,070,000 cubic metres, African countries provided
750,000 cubic metres, with Central and South America
accounting for the balance.


Guangdong, Yunnan, Shanghai, Zhejiang, Jiangsu and
Fujian are the main redwood processing centres. Redwood
imports to these six provinces from January to October
were 1,780,000 million cubic metres or 96% of the
national total.


Beech imports up more than 40%
Between January to September 2014 China imported
1,5485,000 cubic metres of European sawnwood, a year
on year increase of 21%. The pace of growth in China‟s
imports of German beech reached 42%.

China scores with plywood exports to Philippines
Between January and October this year China‟s plywood
exports rose 12% to 8,720,000 cubic metres, valued at a
little over US$4.3 billion a year on year increase of 15%.
The average unit price for China‟s plywood exports in the
ten months to October was USS494 per cubic metre , up
2% year on year.


The main markets for China‟s plywood were USA
(1,220,000 cubic metres, up 21%), Japan (631,000 cubic
metres, up 4%), South Korea (566,000 cubic metres, down
12%), Philippines (539,000 cubic metres, up 88%),the
United Arab Emirates (525,000 cubic metres, up 39%),
UK (506,000 cubic metres, down 2%), Saudi Arabia
(460,000 cubic metres, up 30%).


China‟s plywood exports to these seven countries make up
more than 50% of the national total. Jiangsu and
Shandong are the two main centres of plywood production
for export accounting for 76% in volume and 76% in value
of 2014 exports.


 

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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