US Dollar Exchange Rates of
10th January 2015
China Yuan 6.2045
Report from China
PMI lowest for 18 months
There was further evidence of weakness in China's
manufacturing sector with the December purchasing
managers index (PMI) falling. This suggests the 2014
economic growth target may be missed.
China‟s National Bureau of Statistics recently released the
December PMI data which shows a decline of 0.2%
compared to a month earlier. However, the overall
December figure was still, just, above the negative
The PMI of large-sized enterprises was 51.4 percent, down
0.2% month-on-month, that of medium-sized enterprises
was 48.7 percent, up by 0.3% month-on-month, but still
below the positive threshold. The PMI of small-sized
enterprises was down sharply to 45.5 percent and
continues to contract.
Oversupply drives down home prices
The declines in home prices in China quickened in
December according to the statistics released by the
National Bureau of Statistics. Oversupply appears to be
the main issue and home builders are beginning to offer
steep discounts to generate cash flow.
Compared to prices in October amongst the 70 cities
surveyed new home prices fell in 67, and remained
unchanged in just 3 cities. A similar trend was reported for
second hand homes with prices falling in 58 cities, being
unchanged in 6 and rose in the others.
Year on year home prices are around 3% down and the
pace of year on year declines appears to be quickening.
First domestic standard on formaldehyde emissions
A domestic standard for low formaldehyde plywood has
been introduced by the Anhui Provincial Bureau of
Quality and Technical Supervision and this fills a blank in
the domestic industry.
This standard specifies the classification, technical
requirements, test method, inspection rules, labeling and
packaging of formaldehyde free plywood.
The standard will be applied to wood composite flooring,
doors and furniture where plywood is used.
Before the new standard became mandatory the standard
for the E0, E1 level of formaldehyde emission in China
exceeded the 0.3mg/L international standard and because
of this the US rejected a huge amount of China‟s wood
products for failing to meet their formaldehyde standards.
Acceleration of furniture exports to UK and Germany
Between January and September 2014 China‟s furniture
exports rose 10% to US$10.18 billion, up 16% from the
same period in 2013. The main destinations for China‟s
furniture exports were North America, Asia and Europe
which together accounted for 90% of the national total.
Central and South American, Australian and African
markets accounted for most of the balance.
The USA was the largest market for China‟s furniture
accounting for 31% of the national total in the first nine
months of 2014. The second largest market was Japan, at
8%. China‟s furniture exports to the UK, Germany and
France made up more than 50% of China‟s furniture
exports to Europe. The pace of growth in China‟s furniture
exports to Germany and the UK reached 20% and 17%
respectively in the first nine months of last year.
Guangxi - the national timber reserve region
A national fund for strategic timber reserves in seven
provinces has been established and in Guangxi some
RMB50 billion will be invested up to 2020 to establish
around 3 million hectares of forest.
This area is expected to produce 25% of the national total
timber output by 2020.
New Zealand and USA major sources of logs for Fujian
According to statistics for the first ten months of 2014, log
imports through Fujian province amounted to 6.44 million
cubic metres valued at RMB6.85 billion, up 29% in
volume and 38% in value from the same period of 2013.
New Zealand and the USA are the main sources of log
imports to Fujian with 39% (2.51 million cubic metres)
coming from New Zealand (up 13% year on year) and
19% (1.24 million cubic metres) were from the USA ( up
60%). A further 11% of Fujian log imports were supplied
by Australia (up 14% to740,000 cubic metres).
¡®Redwood¡¯ imports close to 2 mil. cubic metres
According to China Customs, between January and
October 2014 China‟s redwood imports totalled 1.85
million cubic metres valued at US$2.4 billion, up 92% in
volume and 124% in value from the same period of 2013.
Of the total, redwood log imports were 1.57 million cubic
metres valued at US$2.05 billion, up 82% in volume and
113% in value from the same period of 2013. The average
price for redwood log imports rose 16% to US$1,280 per
Redwood sawnwood imports totalled 195,900 cubic
metres valued at US$355 million, up 178% in volume e
from the same period of 2013. The average price for
redwood sawnwood imports rose 2.5% to US$1,631 per
Between January and October 2014 close to 1.07 million
cubic metres of China‟s redwood imports were from
Southeast Asia. A further 750,200 cubic metres were from
Africa with most of the remaining volumes coming from
Central and South America.
Between January and October 2014 the value of China‟s
redwood furniture and other redwood product exports
increased 18% from the same period of 2013.