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China Wood Products Prices

16 ¨C 31th October 2015

US Dollar Exchange Rates of  25th  October 2015
China Yuan 6.
Report from China

 Promoting green building materials
The Ministries of Industry and Housing have developed an action plan to promote the production and use of green building materials. The aim is to increase the proportion and quality of green building materials and will focus on energy consumption in manufacturing and the emission of toxic airborne substances.

According to the plan more wooden building will be developed in the near future. The use of wooden structures will be promoted in public building such as schools, kindergartens, nursing homes and in landscaping. In addition, wooden rural housing construction will be promoted in existing and new community developments.

Biomass building materials will play a prominent role in the implementation of the action plan and new technologies utilising biomass materials will be introduced.

Priority will be given to the development and use of biomass fibre reinforced wood plastic, home interior furnishing and decoration and an expanded role for bamboo in buildings will be explored.

Imports of high quality particleboard
Despite being a major producer particleboard imports remain high. China is one of the largest producers of particleboard and output in 2014 rose 11% to 20.87 million cubic metres. The main production centres are found in 10 provinces; Shandong (3.67 million cu.m, 18%), Hebei (2.91 million cu.m, 14%), Jiangsu (2.8 million cu.m, 13%), Guangdong (1.59 million cu.m, 8%), Fujian (1.5 million cu.m, 7%), Anhui (1.33 cu.m, 6%), He¡¯nan (1.31 million cu.m, 6%), Liaoning (1.27 million cu.m, 6%), Guangxi (1.11 million cu.m, 5%) and Hubei (0.79 million cu.m, 4%).

While national output is huge the quality of domestically made particleboard is very variable and much of the output is of low quality. As a result a large volume of particleboard is imported to meet domestic demand quality panels. Particleboard imports in 2014 were 550,000 cu.m.

Local analysts say there are around 1,000 particleboard manufacturers and about 14 large scale enterprises have an annual capacity of 200,000 cubic metres.

Golden waterway for trade ¨C new Artic shipping service
COSCO one of China¡¯s state owned shipping companies has announced it will introduce regular shipping services via an Arctic route to Europe. The company has tested the feasibility for this new route by twice sailing a vessel through the north east passage.

This year a COSCO container vessel equipped for ice breaking took just under a month to cover the sailing from Taicang Port to Rotterdam via the Artic route.

This route results in a 30% saving on sailing time and a fuel saving as the route is 2,800 nautical miles less than the route through the Indian Ocean and Suez Canal. China¡¯s Xinhua News Agency reported that Chinese experts hailed the route as a ¡°golden waterway¡± for trade.

New distribution networks for the timber industry
It has been reported that new opportunities for the timber sector will be created by two national new development strategies, first the ¡®One Belt, One Road¡¯ strategy and second the ¡®Yangtze River Economic Belt¡¯ strategy.

Under these strategies two new international transport channels will be opened, one the Eurasia International Railway (from Chongqing city to Kazakhstan,, Russia, Belarus, Poland, and Germany) and the second the ¡®Wuhan New Europe¡¯ channel (from Wuhan city to Kazakhstan, Russia, Belarus and Poland).

Each channel will result in opportunities for international distribution of wood products and it is expected that there will be investment in forest plantations close to the railhead of these two new transport system in the western provinces.

Wuhan municipal government is applying for authority to become a timber importing port, distribution centre and a timber processing and logistics zone for the China/Russia timber trade.

Trial production of formaldehyde free panels
Recently Guangxi Gaolin Co., Ltd of Gaofeng Forest Farm reported a successful trial production of formaldehyde free panels becoming the first enterprise in Southern China manufacturing formaldehyde free panel with isocyanate resin - a non formaldehyde glue.

The physical and mechanical properties of formaldehyde free panel produced by Gaolin Co., Ltd in cooperation with Bayer Material Science and Technology Co., Ltd are said to be higher than the national standard and the panels exhibit good technical properties. Because of this the product has the potential to become strongly competitive in the market. This development lays the foundation for the company to expand domestic and foreign sales.

Dongguan furniture makers explore South African market
Dongguan city in Guangdong Province is well known as a furniture manufacturing base. The city¡¯s furniture enterprises have opened a new market in South Africa and the first shipment of 10 containers was dispatched to South Africa on 13 October 2015.

Dongguan furniture enterprises have come together to create what they call a ¡°Dongguan Q2Q mode¡± . This brings together enterprises with various specialisations to provide a ¡®one-stop¡¯ center to service exports.

This is an innovative approach to a supply chain management for the furniture industry and has attracted a lot of attention from domestic manufacturers. The scheme brings together scattered producers and suppliers and results in reduce international logistic and warehousing costs for the benefit of all involved enterprises.



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

Source:ITTO'  Tropical Timber Market Report

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