China Wood Products Prices
16-30th Oct. 2004

Foreign trade record  

The total value of China's foreign trade up to September rose 36.7% to US$828.55 billion, approaching the level for the whole of last year (US$851.21). Of the total, exports rose 35.3 per cent to US$416.24 billion and imports surged 38.2 per cent to US$412.31 billion.  

China Customs statistics show that the total value of general trade rose 33.8% to US$358.64 billion. Of the total, the value of imports rose 34.3% to US$186.08 billion. The total value of processing trade surged 36.9% to US$387.92 billion. Of the total, exports rose 35.9 per cent to US$228.82 billion and imports jumped 38.5 per cent to US$159.1 billion.  

Among import commodities, the growth in imports of primary products slowed markedly and this contributed to the transition from trade deficit to surplus. On present trends it could be that China's foreign trade could top US$ 1 trillion by the end of 2004.  

The European Union continued to keep the number one position in the league of trading partners and the value of trade rose 35.6% to US$128.02 billion. The US was the second ranked trade partner (up 34.4% to US$122.23 billion). Japan ranked third and the value of trade rose 26.9% to US$121.78 billion. Among the other major trade partners, the value of trade between China and Canada, Australia and South Korea was up 56.2%, 50.3% and 46.7% respectively. 

Construction sector development  

According to forecasts from sector analysts, China's construction activity (by area) is expected to increase by as much as 1 billion square metres per year rate in the next 10 years and over the next 20-30 years the growth in the sector could be as much as 10% per year. 

Currently house building has become one of the drivers of the economy and the rate of urbanization has increased in tandem with industrialization.  China's industrialization is now at a stage of rapid development and it is forecast that the rate of urbanization will increase at around 1% per yea. 

According to forecasts from the government, China's urbanization rate will increase from the 30% level at present to 35% in 2005 and grow further to 45% in 2010 and 50% in 2020. This growth is already creating a tremendous demand for construction materials as many people relocate from rural to urban areas.  

Continued and rapid economic development and population increases are also the driving forces for construction development. China has 11-12 million newly born every year and this is said to translate to a growth in consumer spending power of Yuan 63-65 billion per year.  

According to estimate from the World Bank, annual incomes of some 60 million families in China has reached US$12 000 and this will extend to some 150 million families in 10 years. The Bank also reports that there are at least 33 million houses, mostly in rural areas, needing renovation and that this will stimulate investment in urban and rural house building. 

Current investment in housing makes up around 8.5% of GDP and 24% of the investment in fixed assets. The growth rate for real estate development was 19.5% in 2000, 29.8% in 2001 and this further increased to 32.9% in 2002. This all points to a tremendous demand for wood products in tandem with the steady development of real estate.

Promising Bamboo Industry 

China is known as the 'kingdom of bamboo' with more than 40 genus and 500 species, making the country first in terms of bamboo species resources, bamboo forest area and stocking volume.  

Currently, China has 7.2 million hectares of bamboo which includes 4.2 million hectares of pure bamboo forest and 3 million hectares of Mao bamboo (one of the most important bamboo species).  

Bamboo grows all over China except in Heilongjiang, Jilin, Mongolia and Xinjiang provinces. The bamboo forest area of Fujian, Jiangxi, Zhejiang, and Hu'nan make up 50% of the national total of which 80% is Mao bamboo  

China's bamboo industry has developed rapidly in recent years and the State Forestry Administration has compiled a report "The Development Planning of China's Bamboo Forests between 2003 to 2010". 

Currently, the annual output value of China's bamboo industry is around Yuan 37 billion annually. Every year China produces 8.5 million tons of bamboo poles (of which 6 million tons is commercial bamboo), 1.6 million tons of bamboo shoots, 250,000 tons of canned bamboo shoots, 60,000 cubic metres of bamboo plywood, 4 million cubic metres of bamboo flooring and 1 million tons of bamboo pulp paper.  

In addition, bamboo wood is used in producing bamboo charcoal and bamboo fibre also, bamboo leaf is used to produce medicines and health products. Various kinds of bamboo products are applied in construction, papermaking, food, furniture, packaging, transportation, medicine and health care.  

China has a worldwide reputation for its bamboo articles, musical instruments, carvings, household goods and building materials. According to available statistics, China has 30 bamboo processing enterprises with annual sales of more than Yuan 10 million and 9 enterprises with annual sales of more than Yuan 50 million. The annual output value of Zhejiang Anji City's bamboo processing industry is reportedly Yuan 3.7 billion.  

The export trade in China's bamboo products has expanded and the annual export value of China's bamboo products is about US$600 million.  

Buyers gathered in Dongguan  

Although the preliminary judgement of the US anti-dumping investigation on China furniture concern in the international furniture sector, some 60000 buyers from 50 countries gathered Dongguan Houjie in Guangdong Province for the 12th International Furniture (Dongguan) Expo. Many buyers from big companies came to the Expo and sought out opportunities for business cooperation. For the first time Milan cabinet brands were on display in the Milan cabinet culture exhibition room. Also German companies exhibited fashionable soft furniture.

 Guangdong's furniture exports fall  

It has been reported that exports of wooden bedroom furniture through Guangdong Port have been falling for 3 consecutive months and that the value of exports in July was just US$170 million roughly one-fourth of that seen in April this year.  

According to statistics from China Customs, in 2003 the value of furniture exports through Guangdong Port was US$3.67 billion, US$1.84 billion to the U.S, making up 50% of Guangdong furniture exports.

Chinese exporters of wooden bedroom furniture had to face stiff anti-dumping penalties imposed by the US. Seven companies were investigated and had to face duties ranging from 4.9%-24.34%.  

An additional 82 companies, accounting for 40% of all US wooden bedroom furniture imports, faced a levy of 10.92. According to local experts the impact of the US anti-dumping decision will be felt for some time to come.  

Guangzhou City Imported Timber Market  

Shanghai Furen Wholesale Market 

Hebei Shijiangzhuang Wholesale Market

 Shandong De Zhou Timber market  

Tian Jin City Huan Bo Hai timber Market  

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