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China Wood Products Prices

1-15th August 2005


Report from China   

Dollar Exchange Rates of 5th August 2005
China Yuan 8.10 

Strategic Adjustment of Forestry Productivity

In a recent televised meeting organized by the State Forestry Administration, a call was made for a ‘strategic adjustment’ in China’s development plans to ensure it followed a path towards sustainability. Forestry, in particular, would be needed to expand shelter belts along eastern coastal areas, bring desertification under control in the underdeveloped western provinces, provide timber through fast-growing and high-yielding forests and ensure that natural forests were fully protected in the north. In short, the forestry development layout for the four major regions would comprise expansion in the east, control in the west, use in the south and rehabilitation in the north. 

Major Wood Products Traded in 2005 

IMPORTS


Logs
Log imports continued to grow in the first half of 2005 and were 14.8m cu.m. valued at $1.6b, up 13% in volume and 18% in value year on year. On average, prices for imported logs rose by 4%, down from 10.8% last year. Softwood log imports reached just over 9m cu.m valued at $678m, a year on year increase of 17% in volume and 24% in value. In comparison, hardwood log imports amounted to 5.7m cu.m. valued at $939m, a year on year increase of 8% in volume and 14% in value. Tropical log imports grew only 4.8% to just under 4m cu.m..

 

Sawnwood

Sawnwood imports contracted by 1.1% to 3m cu.m. but their value grew 8% to $723m. Softwood sawnwood imports continued to increase and reached just under 1m cu.m. valued at $163m, up 16% in volume and 19% in value. Hardwood sawnwood imports amounted to 2m cu.m. valued at $560m, down 8% in volume but up 6% in value. Tropical sawnwood imports rose strongly by16% to 1.75m cu.m..

Wood-based panels

Plywood import volumes continued to decline, falling 5% to 363 700 cu.m., although value rose slightly to $183m. Veneer imports were 58 300 tons valued at $58m, up 3% in volume and 14% in value. By contrast, fiberboard imports fell drastically to 329 400 tons valued at $12m, a year on year decline of 21% in volume and 14% in value. Particleboard imports were comparatively lower, amounting to 12 800 tons ($3.4m), a year on year increase of 2% in volume and 7% in value.  

EXPORTS

Sawnwood exports continued their strong upward trend, reaching 293 100 cu.m. ($134m), a year on year increase of 34% in volume and 31% in value. Similarly, plywood exports climbed to 2.7m cu.m. ($864m), a year on year increase of 38% in volume and 67% in value. Fiberboard exports also grew significantly and topped 482 700 tons ($1.8b), a year on year increase of 504% in volume and 518% in value. 

Veneer exports continued to decline and amounted to 37 000 tons ($60m), a year on year decrease of 14% in volume and 3% in value. Particleboard exports declined to 2 700 tons ($964 000), a year on year decrease of 73.8% in volume and 64.4% in value. Wooden furniture exports continued to surge, reaching over $2b, a year on year increase of 24%.

Log imports declined in Zhangjiagang Port

It has been reported that log imports through Zhangjiagang Port declined in the first half of 2005 to 1m cu.m. ($198m), down 27% in volume and 23% in value. However, Zhangjiagang Port continues to be the largest port for log imports[?] in China. 

According to local experts, the main reasons for the decrease were the shortage of timber resources from Southeast Asia and the increasing cargo diversion to other neighboring ports. Zhangjiagang Port’s imported logs came mainly from Oceania (390 000 cu.m.), Africa (370 000 cu.m.) and Southeast Asia (250 000 cu.m.), making up 38%, 36% and 24% respectively of total logs imported. Affected by oil price rises, log shortage supply and currency exchanges, the average price for imported logs was reported to have risen 5% to $192 per cubic meter. 

The fraction of defective imported logs in Zhangjiagang Port grew drastically by 42.5% to 11 500 cu.m. in the first half of 2005, while Quarantine Bureau compensation claims rose to $1.5m.

80% of Jiangsu Imported Logs had Exotic Pests

Exotic pests have been imported along with logs in Jiangsu Province in recent years. According to the statistics from the inspection and quarantine sector, 172 kinds of pests were found in 1m cu.m. of logs. Imported logs with insects constitute 70% of imports while the presence of Class 1 harmful insects shows an increasing trend. 

The invasion of large quantities of foreign pests have endangered the national ecological security and caused significant economic losses. According to partial statistics, pine wood nematode alone had caused 20m trees dead and 2.3b yuan of economic losses. According to local experts, the main reasons for the high percentage of imported logs with pests are:

·       Logs with harmful insects from Russia have not been treated before leaving the country.

·       Imported logs often still have their bark, increasing the probability that the logs will harbor pests.

·       Treatment for pests is not done on 100% of logs in many countries.  

Jiangsu is currently paying more attention to the inspection and quarantine of imported logs and has taken a series of measures to increase the degree of detection and interception. 

Workshop on Wood Residue Recycling

China;s Wood Saving and Development Center, supported by the Department of Environment and Resources Conservation under the National Development and Reform Committee, will host the first International Workshop on Wood Residue Recycling and Reusing in November 2005 in Beijing. The conference aims to implement the spirit of the “State Council on Energy-Saving Society” as well as to exchange domestic and foreign production technology and management experience, research and discuss ways to industrialize domestic wood residue recycling and reusing and encourage development of national related industry policies. 

Guangzhou City Imported Timber Market

 

Logs

   Radiata 6m, 30cm diam.

   Luan

   Merbau 6m, 60cm diam.

   Kapur/Keruing 60cm+ diam.

   Beech 6m, 30cm Veneer Qual.

 

Sawnwood

   Teak Boards

   US Maple 2" KD

   US Cherry 2"

   US Walnut 2”

   SE Asian Sawn 4m+, KD

 

Plywood

   4x8x3mm

   4x8x18mm

Yuan per Cu.m

1100

2100-2300Ç

3800-4100Ç

2550Ç

3300-3600

 

 

9800-14800Ç

8500-9600Ç

9600-14500Ç

11000-14500Ç

3400-3500È

 

 

20-32

150-170È

 

Shanghai Furen Wholesale Market

Logs

       Wenge (Africa)

 

Sawnwood

       Beech KD Grade AB

       US Cherry, 25mm

       US Red Oak, 50mm

       Sapele Grade A

Yuan per Cu.m

5000-5500

 

 

3800-3900

12500-13000È

11000-11800Ç

5500-5800Ç

 

Hebei Shijiangzhuang Wholesale Market

 

Logs

      Korean Pine 4m, 38cm+ diam

      Mongolian Scots Pine

       4m, 30cm diam.

       6m, 30+cm diam.

 

Sawnwood

      Mongolian Scots Pine

       4m, 5-6cm thick

       4m, 10cm thick

Yuan per Cu.m

1650Ç

 

980È

1010È

 

 

 

1280Ç

1250Ç

 

Shandong De Zhou Timber market

 

Logs      

Larch

          4m, 24-28cm diam.

          6m, 24-28cm diam.

White Pine

          4m, 24-28cm diam.

          6m, 24-28cm diam.

Korean Pine

          4m, 30cm diam.

          6m, 30cm diam.

Yuan per Cu.m

 

890

900

 

940

950

 

1100È

1150È

 

Tian Jin City Huan Bo Hai timber Market 

Sawnwood

US Black Walnut

       2.2-4m, 5cm thick 

Padauk 2.2-3.2m, 5cm thick

Sapele 2.2-2.6m, 5cm thick

Ash 4m, 50mm thick

Yuan per Cu.m

 

15000

8500-9800

5300

3600

  

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

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