US Dollar Exchange Rates of
China Yuan 6.4193
Report from China
Rise in log and sawnwood imports from Germany
According to China Customs in the first quarter of 2021
log imports from Germany surged 90% to 3.28 million
cubic metres and sawnwood imports from Germany grew
37% to 950 000 cubic metres.
In the first quarter of 2021 the total volume of China¡¯s log
imports rose 23% to 13.9 million cubic metres and the
value of log imports grew 33% due to a rise in imports of
high quality logs.
China Customs also reports that the volume of
imports rose 13% to 5.66 million cubic metres but the
value of sawnwood imports fell slightly.
Wood-related enterprises in China
It has been reported that there are 1,033,000 wood-related
enterprises in China and the top 3 provinces in terms of
enterprises number are Shandong (199,000), Jiangsu
(99,000) and Guangdong (76,000). In addition, the number
of enterprises in Shanghai, Anhui and Zhejiang exceeds
Among China's wood-related enterprises, 46% have a
registered capital of less than RMB1 million, 28% have
registered capital of between RMB1 million and RMB5
million and 26% have registered capital of more than
The annual registrations of wood-related enterprises
between 2011 and 2020 showed an upward trend with the
fastest growth rate being in 2016 when annual
registrations exceeded 100,000, a 37% year on year
increase. The number of registrations in 2020 was
193,000, an increase of 7% year on year.
In the first four months of 2021 there were 77,000 newly
registered timber enterprises in China, up 60% over the
same period of 2020. Among them, the number of
enterprise registrations in March and April was 27,000 and
24,000 respectively, both showing a year-on-year growth.
Online seminar on furniture trade, China/Russia/
An online seminar on the furniture sector was conducted
with the participation of China, Russia and Belarus. 35
potential buyers from Russia and Belarus conducted online
negotiations with 72 Chinese furniture and home
furnishing enterprises in Gongguan City. The seminar
attracted online participation from 130 individuals.
Building on experiences from the Gongguan-Eurasia
online seminar for foreign trade enterprises held last year
this seminar established effective links to help enterprises
in Dongguan City expand international markets during the
pandemic without having to travel.
The next step will be promoting seminars for the emerging
markets in the "One Belt and One Road" countries so as to
establish communication platforms to promote integration
of online and offline marketing and realise cooperation
between buyers and sellers.
Rebound in domestic demand for ¡®¡®redwood¡¯ furniture
The size of the domestic market for ¡®redwood¡¯ furniture
showed an upward trend from 2008 to 2017 and this
market developed rapidly from 2014 to 2017 rising 47%
from RMB68.22 billion to RMB100.35 billion.
However, due to trade restrictions introduced through
international conventions, national policy reforms and the
impact of price fluctuations the market price for ¡®redwood¡¯
furniture increased in 2018 resulting in a significant
decline in demand. The size of China¡¯s domestic
¡®redwood¡¯ furniture market dropped to RMB86.59 billion
in 2019 but rebounded in 2020 by 2% to RMB88.41
Rebound in hardwood imports from the US
Despite disrupted trade due to the pandemic US hardwood
exports to China began to rebound in 2020 after a dip in
2019. According to the US Department of Agriculture the
total value of American hardwood exports to China
reached US$1.15 billion in 2020, a year-on-year growth of
The value of log exports increased 3.2% to US$368
million, wood panel exports increased 1% year on year to
US$780.7 million. In particular, the value of American
hardwood flooring exports increased 22% year on year
toUS $1.96 million.
In 2020 China's consumption of hardwood products such
as logs, wood panel, veneers and flooring, rose from 2% to
14% year on year and is expected to keep rising.
The most popular American hardwoods in the Chinese
market are red oak, walnut, ash, white oak, cherry and
tulipwood and these timbers accounted for more than
US$710.6 million or 92% of all US hardwood timber
exports to China.
In 2020, the Chinese market consumed 87% of American
cherry exports, 66% of red oak exports, 59% of ash
exports, 53% of walnut and 44% of red birch exports.
GGSC-CN Index Report, April 2021
In April 2021 China's PMI index rose to 51.1%, a decline
of 0.8 % from the previous month. The Chinese economy
is still in the process of steady recovery. The growth rate
in the basic raw materials industries slowed down
significantly. However, the new energy and consumer
goods sectors have maintained a steady recovery and
external demand tends to improve.
In April the wood production and manufacturing industry
maintained a good recovery momentum with the rapid
growth in domestic and foreign orders and active
production and operations. However, the rapid rise of raw
material prices and the pressure on enterprise profit
margins was of concern.
The GGSC-CN comprehensive index for April registered
71.1% (60.4% for last April and 51.9% for April 2019) a
decrease of 0.8 percentage points from the previous
month. It shows that the operations of the main forest
products enterprises represented in GGSC-CN index
expand from last month. See Figure below.
Challenges identified by GGSC member enterprises
Raw materials prices rose too much and some materials
could not be supplied in time.
The price of raw materials has risen seriously.
Raw materials are becoming scarce.
Products in short supply
Black Walnut Board, Teak Board, Ebony, Pine Core
Board, Dough, Okan.
Commodity for which the price has increased
Paint, Melamine, Formaldehyde, Ebony, Pine Core Board,
Oak, Longan, Oak, Dough, Base Material, Log Fir, Round
Bean, Red Oak, Fiberboard, Reinforced Paper, Carton,
Decorative Base Paper.
Commodity of which the price has declined
In the GGSC-CN index for April 2021 four out of five
sub-indices rose and one fell.
The production index registered 78.6%, a
decrease from the previous month,
The new order index registered 85.7%,
The new export order index reflecting
international trade registered 71.4%, an increase
from the previous month,
The main raw material inventory index registered
The employment index registered 64.3%,
The supplier delivery time index was 42.9%
down from the previous month indicating the
delivery time for raw materials was slower.
Note: If an index is larger than 50% then it indicates a