China Wood Products Prices

16-30th November 2005

US Dollar Exchange Rates of  22th November 2005

China Yuan 8.084
Report from China

China’s wood products trade in 2005

The Tropical Forest Products Information Centre of China, RIFPI/CAF has published China’s trade of wood products in the first three quarters of 2005. 

China’s wood products trade Jan-Sep ’05 (% of change ‘04)

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Imports                                                                    |                      Exports

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                       Mill. m3       %         Mil. US$       %                    Mil. m3      %         Mil. US$      %     

Logs                        22       13              2,429      16   

  Softwood            14        16              1,033      19

  Hardwood               8          9              1,396      15

Sawnwood            4.5        -2               1,117         7                       0.46       36             209         34

  Softwood           1.4        11                 240        14                        0.20      54              86          39

  Hardwood            3.1      -6.8                 877          5                       0.26                      123

Plywood               0.47      -18                229        -18                           4       30             1,347      55

Fiberboard*           499      -22                170        -20                       728.7   355            291         393

Veneer*                57.9      -32                   67        -18

W. furniture                                                                                                                    3,281        29

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*Volume in 000 tons.

Hardwood sawnwood imports reached 3.1 million m3 (US$877 million) in the first three quarters of 2005, accounting for 68% of total sawnwood imports. Total sawnwood imports were 2% down in volume but 7% up in value as compared with the same period last year. Plywood exports reached 4 million m3 (US$1.35 billion) in the period, up 30% in volume and 55% in value from the same period last year. China continues to reduce imports of fiberboard while its exports jumped 355% to 728,700 tons in the period. Exports of wooden furniture are reported to have reached US$3.28 billion in the first three quarters of 2005, though this data is probably an underestimate.

Plywood exports up in Lianyungang Port

Plywood exports through Lianyungang Port in the eastern Jiangsu Province reached 1.63 million m3 (US$405 million) in the first three quarters of 2005 according to Lianyungang Customs, a year on year increase of 38% in volume and 57% in value. Plywood, which is shipped to 90 countries and regions, has become one of key export commodities in the port. Of the total, 318,000 m3 of plywood were exported to USA (up 71%) and 270,000 m3 to the EU (up 73%) in the period. The average export price for plywood was US$248 per m3, up 14.4% over the same period last year. The main reasons for plywood export increases are:
§ Chinese plywood prices are more competitive thanks to lower costs of raw material (e.g. poplar) and labour.

§ Foreign markets are increasingly confident of China’s growing plywood production technology,product quality and demand adjustment capacity.

China establishes timber plantations

Wang Lianzhi, deputy director of the Fast Growing and High Yielding Timber Plantation Programme, has recently informed that China is establishing 9.2 million hectares of fast growing and high yielding timber plantations by 2010. Upon its completion, it is expected a supply of 96.7 million m3 of timber and 7.3 million m3 of wide diameter wood. The supply will feed the production of 11.9 million tons of wood pulp and 13.15 million m3 of wood-based panels. By 2015, Chinese plantations are expected to reach 13.3 million hectares and supply 140 million m3 of timber and 15.8 million m3 of wide diameter wood. The supply will be used for the production of 13.9 million tons of wood pulp and 21.5 million m3 of wood-based panels.

China issues timber production permits

The General Administration of State Quality Supervision, Inspection and Quarantine, and the Wood-based Panel Quality Supervision and Inspection Centre have started to issue permits for the production of wood-based panels and flooring to ensure quality and protect consumers. The timber production permits are compulsory and have a validity period of five years. Firms operating without the permits will be severely punished. Currently, 67 solid-wood flooring firms, 105 impregnated-paper and laminated-flooring firms, 43 wooden composite flooring firms and one bamboo flooring firm have received production permits. The permit label is attached to the packaging where consumers can see the serial numbers of the firm (which starts with the letters XK) to verify the quality of the product.

Guangzhou City Imported Timber Market

Shanghai Furen Wholesale Market

Hebei Shijiangzhuang Wholesale Market

Tian Jin City Huan Bo Hai timber Market

Shandong De Zhou 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