China Wood Products Prices

1-15th January 2005

Shanghai timber import trends 

Shanghai Port has been the main distributing centre for imported timber for many years and some significant trends in timber imports have been observed:  

The proportion of softwood logs has fallen dramatically. Once US Douglas fir, spruce and hemlock dominated imports in Shanghai and East China. American Douglas fir logs through Shanghai Port totalled some 460,000 cubic metres in 1993 making up 33% of the national total imports. 

In recent years the proportion of imported softwood logs of total log imports through Shanghai Port has fallen to about 15%. However, nationally, softwood logs now make up about 65% of all log imports.  

Sawnwood imports exceeded log imports for the first time in 2001. Sawnwood imports through Shanghai Port were 1.072 million cubic metres 2001 and since then the range of species has expanded noticeably.  

Timber imports shipped in containers now exceeded bulk timber imports and the size of the batch has dropped. Previously timber imports through Shanghai Port were of large quantities and few batches. For example, timber imports through Shanghai Port were 1.423 million cubic metres in 239 batches with an average batch of 5,954 cubic metres in 1993. In 2001 timber imports through Shanghai Port were 2.073 million cubic metres in 17,783 batches with a batch size of just 116 cubic metres.

Imported timber shipped in containers in 2001 totalled 1.353 million cubic metres, making up over 65% of the total timber imports through Shanghai.  

Plywood imports through Shanghai Port have fallen and now plywood exports exceed plywood imports a situation which is reflected nation wide. China's plywood exports exceeded its imports for the first time in 2001. It is expected that China's plywood exports will exceed 4 million cubic metres by the end of 2004 and plywood imports will be only around 700,000 cubic metres.  

New Records Expected  

Ma Tinggui, President of the China Construction and Decoration Association, is on record as saying that the total output value of China's construction and decoration materials industry could break new records again in 2004 surpassing the Yuan 830 billion recorded in 2003. China has become one of the major production, consumption and exporting countries for construction and decoration materials. 

Mr. Ma pointed out that China's construction and decoration industry has developed rapidly spurred on by the economic reforms in the country. The value of China's construction and decoration materials industry has grown at an annual rate of around 20% for many years.

Currently the output and export value of China's stone materials alone ranks number one in the world according to the association. The scale of production in China's coating materials sector is second only to that in the USA and China has become one of the major producers and consumers of pottery and porcelain. The association expects the total output value of China's construction and decoration materials sector could reach Yuan 1.4 trillion by 2010.  

More tariff cuts 

It has been reported that approval has been given by the State Council for further cuts in import tariffs on more than 900 items as of January 1 of 2004.  Analysts estimate that this move will lower the average level of import tariffs to 9.9 percent from the current level of 10.4 percent. 

After the adjustment, the average import tariff on farm produce will drop from 15.6 percent to 15.3 percent and for industrial goods from 9.5 percent to 9.0 percent. Amongst these, the import tariff for aquatic products will reportedly be 10.5 percent, timber, paper and paper products 4.6 percent, textiles and clothing 11.4 percent; chemical products 6.9 percent; vehicles 13.3 percent; machinery 8.0 percent and electronic products 9.1 percent. 

Year 2005 will be the time for the final round of import tariff cuts as the country adjusts to the WTO commitments on tariff concessions. 

Canada to promote timber sales 

Exports of wood products from British Columbia to China have been increasing in recent years. Canada's exports soared to C$1 billion in 2003 from C$300 million in 1987. British Columbian exporters have been promoting Canadian style wood-frame house in Shanghai and Tianjin since 2002. Now the a mission from British Columbia will visit Shanghai and take the to promote Canadian Style Wood-Frame House at the Shanghai Expo.  

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