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China Wood Market Report
‐Jan.12, 2002／

Tariffs to come Down

Because China has become a member of the WTO, the general level of customs tariffs will come down to 12% in 2002 from an average 15.3% now. Further reductions are scheduled in years to come. Analysts estimate that tariffs covering some 5300 items, (about 73% of the total), will be reduced in 2002. After the reductions the average tariff rate on industrial products will be 11.6%, the average for agricultural products will be 15.8% while the average for fish products will be 14.3%.

Of industrial products, the average tariff on raw petroleum and refined petroleum products will be 6.1%; timber, paper and its products will attract 8.9%; textiles and clothing, 17.6%, chemical industry products will be at 7.9% while machinery products will attract a tariff of 9.6%. In addition, in 2002, a quota system will be introduced on 10 agricultural products covering wheat, bean oil, sugar for example and on 3 chemical fertilizer products, including urea.

New State Timber Industry Office

• It is reported that the State Forestry Administration has set up a new Office of State Timber Industry, which is attached to the Department of Forestry Resources of the State Forestry Administration. The main function of the office is reported as follows:
  
  
• guide the management of state timber enterprises and key state-owned forestry regional enterprises as assigned by the State Council
  
  
• contribute to formulating policy and regulations for the timber trade and processing sector (the bamboo processing sector is included), and the development of a strategy, for development and monitoring of the state timber industry
  
  
• analyze timber production, supply and trade and guide the import and export of timber and processed products
  
  
• be responsible for state oversight and guidance of timber processing enterprises under different kinds of ownership and make sure enterprises conform to relevant standards
  
  
• guide local forestry administration offices in the monitoring of local timber trade and processing enterprises
  
  
• guide the marketing of forest products so as to maintain fair competition in the timber trade and processing sector
  
  
• guide the sector in health and safety matters
  
  
• guide the actions of related timber associations

Beech log imports

China's Beech log imports January to September reached 554,000 cubic metres, down by 27% compared to the same period last year. Beech imports are expected to top 730,000 cubic metres this year, representing a decline of 17% over last year says Mr. Zhu Guanquan, Deputy Director of China's Log Circulation Association. He explained that Beech log consumption fell as consumption has declined and the market is using a wider range of species. However, demand for Beech logs is still high in some areas. Although the market for Beech logs for interior joinery has fallen in some cities such as Beijing and Shanghai, the market for Beech in other cities, for example in the central and western regions is still booming.

Mr. Zhu is reported as saying the Beech log market in China would remain strong for the five years due to the differences in consumer. He noted that while other timbers are entering the market no other species can replace Beech up to now.

Fen County, in Jiangsu province, is the biggest market for Beech logs and processing in China. Annual Beech log sales stand at about 300,000 cubic metres, reportedly valued at US$600 million and account for 41% of China's imports. Every day, 30-40 containers of Beech logs enter the county and most of this is sold the same day. Beech logs are imported mainly from France, Germany, Italy, Belgium, Ukraine and Russia and arrive in Fen County via ports such as Qindao, Lianyungang, Tianjin, Shanghai and Guangzhou. All logs are of medium and low-grade for sawmilling and eventually the manufacture of flooring and other interior joinery products.

News in Brief

China's imports of logs and other wood products this year are likely to be as follows: Logs, 15.5 million cubic metres, (Up by 14% year on year); Sawnwood, 3.75 million cubic metres, (Up by 4%) and plywood, 700,000 cubic metres, (Down by 30%).

1.48 million cubic metres of logs came to Zhangjiagang from January to September, up by more than 30% on last year. The stock is around 200,000 cubic metres and some 8000 cubic metres is dispatched from the port every day.

China imported 488,000 cubic metres of plywood January to August, (Down 29.4% on last year) Exports totaled 600,000 cubic metres in the same period (UP by 42.6%). This is the first time that China's plywood exports exceeded imports. The average mean CIF price of plywood imports was US$408.5 per cubic metre and the average FOB price of plywood exports was US$ 254.1 per cubic metre.

The total value of construction and interior works in China during 2000 reached 300 billion yuan and the growth of this sector has been at about 30% per year from the early 1990's. Of the total value, Beijing, Shanghai and Guangzhou account for around 50 billion yuan. It is estimated that some 20-40% of log and sawnwood imports are used for interior work.

For information on China's forestry try:
http://www.forestry.ac.cn/

Wholesale Prices, Indonesian and Malaysian
plywood 3mm 1220x2440.