US Dollar Exchange Rates of 9th
China Yuan 6.9375
Report from China
Mixed signals from December PMI
China's manufacturing purchasing managers index (PMI)
in December 2016 was 51.4, a decline over the previous
month, however the index continued to stay in the
expansion range and was at its second highest level for
The housing boom in the second half of 2016 along with
government infrastructure projects helped boost prices
building and construction materials which helped lift
In terms of enterprise size the PMI of large enterprises was
53.2, down on November; that of medium-sized
enterprises was 49.6 a drop below the positive threshold.
The index for small-sized enterprises was 47.2 also down
on November and still in a contraction mode.
Among the five sub-indices comprising the PMI, the
production index and new orders index were higher than
the threshold. The supplier delivery time index was at the
threshold. The employed person index and main raw
materials inventory index were lower than the threshold.
Output from forest industries continues to expand
The 3rd national forestry industry conference was recently
held in Beijing. Participants were informed that the value
of output from the national forest industry sector increased
to RMB5.94 trillion in 2015 from RMB409 billion in
2001. It is estimated that the value of output in 2016
exceeded RMB6 trillion.
The value of foreign trade in 2015 was US$136 billion and
it is forecast that this will rise to RMB9 trillion by 2020.
The ratio of primary, secondary and tertiary forest
industries is expected to change to 27:52:21 over the same
Production halted to help lower air pollution levels
Many cities in Northern China have been experiencing
severe haze since mid-December, Beijing, Tianjin and
Hebei province are particularly badly affected. In response
to this air pollution risk many city authorities have
announced high level heavy air pollution warnings.
Production of wood-based panels has been halted in
Hebei, Tianjin and Shandong Provinces.
Oriental Redwood plans US listing
Oriental Redwood, a Taiwanese company, has announced
that it is proceeding with plans to list in the US.
Oriental Redwood was established in 1962 in Taiwan
P.o.C and has been purchasing furniture in Beijing,
Suzhou, Shenzhen and Taishan cities since 1979 for export
to the US and Southeast Asia.
Oriental Redwood has built redwood sales outlets in
several US cities the largest extending over almost 10,000
square metres. The company anticipates turnover could be
RMB2-5 billion within 5 years.
Log sales rise at Zhangjiagang Port
Log sales from Zhangjiagang Port have been rising
recently to between 7-10,000 cubic metres daily. The main
timbers sold include pometia, okoume, Indian almond,
bintangor and mixed parcels from PNG. Pometia sales
topped the list.
Port data show that the volume of logs imported from the
Solomon Islands increased even as Chinese New Year is
Hemlock-Bamboo CLT - new trend in building
It is expected that a bamboo/wood composite, hemlock-
Bamboo CLT plywood will see increased market
opportunities in the Chinese construction sector where
Canadian western hemlock is currently popular.
In mid-2016 the first production line for hemlock-Bamboo
CLT plywood was built in Ningbo city of Zhejiang
Province by the Institute of China-Canada Low Carbon
New Technology Co., Ltd. A hemlock-Bamboo CLT
patent has been applied for and the company is promoting
the cost-effective advantages of this product.
In December last year two demonstration houses were
built with the new CLT plywood. The company says that
in the house building sector, this product can compete with
most other materials in terms of strength and that
considerable savings in construction time are possible.
Nankang furniture exports boosted by improved
Nankang is located in the Western Ganzhou City in
Jiangxi Province. Recently the Ganzhou timber inspection
zone was upgraded and trade through the zone surged.
Timber imports to Nankang grew more than 200% year on
year and furniture exports expanded three times. Now
Nankang has become one of the main furniture production
bases in Central China.
The rise in exports is partly due to the effort to improve
transportation. Since the upgrading of the zone the
Ganzhou Railway International Container Center has
operates a special weekly service to carry furniture from
Nankang to Shenzhen Yantian Port.