China Wood Products Prices

16-28th February 2005

Non-wood Based Panels in China  

Non-wood based panel production in China falls into five categories, agri-fiber board (such as particleboard and MDF board made of agriculture residues); bamboo board (such as bamboo integrated lumber, bamboo plywood and bamboo laminated lumber); 'shrub board' (such as particleboard and MDF board made of sandland  ); composite board integrating wood and inorganic compounds such as cement/particleboard, cement/fiberboard, plaster particleboard and plaster fiberboard and composite board integrating wood and organic compound such as composite board of wood and plastic.  

Since the 1980s, non-wood based panel production in China have developed rapidly.  Production of bamboo board, shrub board and some agri-fibre boards has developed fast and some innovative technologies for industrial production have been developed.  

The development of non-wood based panels took place in two stages in China, the first stage was in the mid 1980s and the second stage was at the end of 1990s. 

Agri-fiber board 

In the mid 1980s, some research units started to study and test production techniques and equipment for raw materials found in China and the work was done in cooperation with manufacturers and success was achieved in making particleboard made of flax residues, bagasse and bulrush stems. However, it took more time to develop technologies to produce boards using wheat stem, straw and corn stem, because the equipment then available was not suitable for processing these materials.  

It was not until the end of 1990s, after the success overseas in using isocyanate resins that producing board made of wheat stem and straw was industrialised in plants in in Hubei, Jiangsu, Sichuan and Heilongjiang provinces.  

In addition, some manufacturers developed flat-pressed wheat stem wall board and mold-press construction components, but the volumes were not big. At present there are about 10 production lines for wheat stem and straw particleboard which have been established or are being established and the total annual production capacity is only reported at about 200,000 cubic metres. 

Bamboo board  

The technology for producing bamboo plywood had been perfect in China in the 1970s, the product of the day was used for package and construction and the raw materials were only small mixed bamboo. In the post 1980 period, plywood made of large diametre bamboo such as Phyllostachys heterocycla var. pubescens started to be produced and this could be used for carriage floors and construction concrete formboard.  Today industrial production of this product is well established.  

The production of bamboo concrete formboard in China has reportedly reached a level of some 20 million square metres annually (2004) and is a common product in the construction sector. It has been forecast that demand for bamboo concrete formboard will reach 40 million square metres by 2010.  

Technologies for the production of bamboo laminated lumber developed rapidly in the early 1990s.  This product utilises small sized mixed bamboo and the residues of some other bamboo processing industries. The product is made using phenolic resins and pressing and is used for carriage floors and construction formboard. Also in the mid 1990s a new product, bamboo flooring was launched. This product utilises mainly the bamboo Phyllostachys heterocycla var. pubescens. 

From the early trials it was recognized that this product had a special grain structure, good surface and good physical and mechanical properties and the development came at a time when the demand for natural floor coverings was strong. Today, the production of bamboo flooring has reportedly reached about 8 square metres and the development potential of the bamboo floors industry is considerable.  

Shrub board 

The industrial technology to produce shrub board was developed in the early 1990s. The first particleboard production line was established and put into production in 1991 and the raw material was sand willow.  This plant is said to be both financially and socially beneficial. Up to now, five sand shrub particleboard plants and one MDF plant have been established. The total production capacity of the current mills has reached about 60,000 cubic metres per year.  The indications are that another four shrub particleboard mills, the total production capacity of which will reach 250,000 cubic metres per year, are being established.  

Composite wood and inorganic boards 

Cement/particleboard and paper/plaster board production was first seen in China in the 1980s. Several production lines for cement/particleboard were established early in the 1980s and the product was used for a variety of enduses but many plants failed.  

The main reasons given by local analysts for the mill failures was the poor quality of the product and its failure in use. However, today, a new generation of mills has been established and the plaster board industry has steadily gained market acceptance and has become one of the basic products in the construction materials market.  

The Southern Wood Markets 

Analysts in China are reporting that the supply and demand for traditional timbers are in balance in the markets in the southern reaches of the Yangtse river in China, such as Fujian, Jiangxi, Guangdong, Guangxi, Hunan, Guizhou and Zhejiang provinces.  

In 2004 the market was characterised by higher log production, high consumer purchasing potential and relatively steady prices. For 2005, analysts say that the profitable and marketing of domestic timbers will be maintained, however, there are some issues that need to be resolved. 

On the positive side of domestic resource use, the local wood processing industry has developed rapidly in southern forest areas in recent years. The production of wood-based panels, wooden decorative items such as mouldings and furniture has created an industrial sector which generates economic and social benefits.  

In addition, the maturing of plantations of fast-growing and high-yielding forest established in the 1960s and 1970s is now available for harvesting and large volumes from these plantations have entered into the local market and secured a strong market position and this trend is expected to become more pronounced in 2005.  

The market for domestic timbers has now become a sellers market as almost all types of local timbers and wood products can be sold at good prices. It is estimated that the demand for pine logs, for example, will remain high in 2005 and there will be good demand for large diameter logs and prices will continue to move up. The market for eucalyptus timber, which has become more popular locally because of the widening application and the improvement of processing technologies, is expected to strengthen and prices could, say analysts, overtake those of pine.

Overall, manufacturers utilising domestic logs have had a very good time recently and the profit levels have been very rewarding and this will certainly attract more into the market.  

On the negative side there are some handicaps and disadvantages for manufacturers in the southern regions, for example, the climate has a big impact on the production and transportation of wood. High rainfall often results in flooding and seasons with very little rain disrupt water transport and hydro-electric production.  

With the new and strictly enforced truck loading laws the cost of road transport of wood products has increased and is biting into margins. 

Also, because of the rapid development in the urban areas the number of people moving to the cities in search of higher incomes has jumped and this has meant it is now more difficult and costly to find forest workers. This has the effect of increasing wood raw material costs.  

Furniture Export Value

According to the latest statistics from Chinese Customs, China's export of furniture and parts were valued at US$10.167 billion in 2004 and this was the first time exports exceeded US$10 billion. 2004 exports were up 39.3% on 2003 exports. 

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