US Dollar Exchange Rates of 10th September 2016
China Yuan 6.6867
Report from China
Recent gains in house prices limited to major cities
The National Bureau of Statistics (NBS) has reported July
sales prices for newly constructed residential buildings
saying, compared to a month earlier, prices declined in 16
cities, increased 51 and were unchanged in 3 cities.
The NBS survey covers 70 medium and large-sized cities
but excludes prices for affordable homes built by
government. Year on year house prices fell in 11 cities,
were up in 58 and unchanged in one.
Prices for second-hand homes have also been reported by
the NBS. July prices fell in 12 cities, were up in 51 cities
and unchanged in 7 compared to a month earlier and year
on year prices were down in 18 cities and up in 52 cities.
Analysts were quick to point out that recent gains were in
just a handful of so-called first- and second-tier cities with
Shenzhen leading the way but even here the pace of price
increase is slowing.
Other cities posting sharp increase in house prices include
Xiamen, Hefei Nanjing, Shanghai and Beijing. While
prices may be higher than a year ago short term price
trends suggest a slowing of demand.
The continual rise in house prices in the first half of this
year was largely driven by easy credit with home loans
accounting for more than half of all loans by commercial
banks. Home loans hit a new peak in June this year.
The overheated housing market has prompted signals from
the government that restrictions are likely to be imposed.
But with residences in the top tier cities seen as safe
investments prices there are immune from regulations or
restrictions of credit.
Retail sales rise but not by as much as forecast
Domestic consumption is a major driver of China¡¯s
economic growth such that changes in consumer spending
can have a marked impact on the economy.
According to the NBS retail sales rose by 10.2% in July
2016 compared to the 10.6% increase in June. The July
figure was below the forecast 10.5% rise. Looking more
closely at the numbers, sales of building materials were up
15% and furniture sales rose almost 14%.
Prices for Chinese plywood decline in international
China¡¯s plywood exports totalled 5.52 million cubic
metres, valued at US$2,610 million in the first half of
2016, much the same volume as in the first half of 2015
but the average unit price for exported plywood in the first
half of 2016 was US$473 per cubic metre, a year on year
decline of 6%.
In the first half of this year the main markets for China¡®s
plywood were the USA (930,000 cu.m, down 1%), the
Philippines (410,000 cu.m, up 40%), UAE (380,000 cu.m,
up 6%), the UK (370,000 cu.m, down 12%), Japan
(300,000 cu.m, down 12%), South Korea (290,000 cu.m,
down 10%), Saudi Arabia (240,000 cu.m, down 17%),
Thailand (160,000 cu.m, up 19%), and Algeria (130,000
cu.m, up 104%).
Looking at price trends in the various markets a different
story emerges with the average price for plywood exports
being US$705 per cubic metre in the US, US$406 per
cubic metre in the Philippines, US$376 per cubic metre in
UAE, US$443 per cubic metre in the UK, US$448 per
cubic metre in Japan, US$361 per cubic metre in South
Korea, and US$304 per cubic metre in Saudi Arabia,
US$340 per cubic metre in Thailand, US$421 per cubic
metre in Israel, and US$330 per cubic metre in Algeria.
Overall prices in these markets fell between 2% and 9%.
US the main market for China¡¯s furniture
The total value of China¡¯s furniture exports in the first half
of 2016 fell 4% to US$10.4 billion. Chinese exporters now
ship to a multitude of markets but the US was the main
market in the first half of this year accounting for 35% of
total furniture exports.
Finnish timber association helps wood frame building
A Finnish timber association is working closely with
China¡¯s Wood Protection Industry Association (CWPIA)
to develop techiniques for the efficient production of
sawnwood for the construction of wooden frame
The Chinese government has recently prepared a standard
for environment-friendly buildings which sees the use of
wood rise around 2%. It was recently reported that Japan
also is promoting its wood frame technology in China.
Log imports through Caofeidian Port soar
According to the Hebei Inspection and Quarantine Bureau,
log imports through Caofeidian Port soared over 600% to
339,400 cubic metres in XXX. The value of log imports
was put at USS45.96 million, a year on year increase of
more than 400%.
The main supply countries were Canada, the US, New
Zealand and Russia and the main species were douglas fir,
hemlock, spruce, fir, radiata pine, yellow cedar and
Analysts say the main reasons for the increase is that
Caofeidian Port is the first to have a timber quarantine and
sanitary treatment zone for imported timber. Caofeidian
Port services importers throughout the northern region
including Bejing, Tianjin and Hebei province. The port
offers attractive logistics and transport facilities.
New flooring project in Taizhou city
Nature Flooring Holding Co., Ltd in Taizhou City, Jiangsu
province is investing RMB1.1 billion in new flooring
production capacity. On completion, 6 million square
metres of composite flooring will be processed which are
expected to generate annual sales of RMB1 billion.
Nature Flooring Holding Co., Ltd is one of Hong Kong¡¯s
listed companies and has a dedicated Rand D commitment
and efficient production and marketing capacity.