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China Wood Products Prices

1 C 15th November 2015

US Dollar Exchange Rates of  10th  November 2015
China Yuan 6.
Report from China

 Childrens furniture industry cheers two child policy
The government recently announced an official end to the
one-child policy. Now couples will be allowed to have two
children which has prompted childrens furniture
manufacturers cheer anticipating a growth in sales.

The one-child policy was first eased in November 2013
after the Third Plenary Session of the party congress when
it was decided that couples would be allowed to have two
children if one of the parents is an only child.

Free trade zone in Manzhouli Port
China has signed many free trade agreements as part of it
trade development strategy. Current agreements cover 22
countries and regions such as the ten ASEAN countries,
New Zealand, Singapore, Pakistan, Chile, Peru, Costa
Rica, Iceland, Switzerland, South Korea and Australia.
The easing of trade regulations between the mainland and
Hongkong and Taiwan P.o.C continues.

The establishment of free trade zones is also part of
Chinas foreign trade strategies and favorable policies for
free trade zone have encouraged export-oriented
enterprises to relocate to these zones.

The Chinese government has a free trade agreement with
South Korea and is negotiating with Japan. Both South
Korea and Japan are important trade partners and much of
the trade with these two countries is through Manzhouli
Port. With a free trade zone in Manzhouli port processing
and re-export will be facilitated.

Northeast Asia wood trading center
An event to attract participants to the Northeast Wood
Trading Center was held recently in Jiubing town, Fushun
County, Liaoning province. Work on this centre began in
May 2014.

Jiubing town is known as a major flooring production
centreas there are more than 130 wood products
processing enterprises of which 13 have an annual
turnover of more than RMB5 million.

Mills in the town have the capacity to produce around 50
000 cubic metres of carbonized wood, 7 million cubic
metres of planed timber, 5 million square metres of solid
wood flooring and a huge amount of composite flooring.

It has been announced that RMB 5 billion will be invested
in the trading centre to facilitate electronic on-line trading
of wood products. In support of the new centre the local
infrastructure will be upgraded.

Bar code information to protect redwood consumers
In order to protect the interests of redwood consumers
redwood product manufacturers in Zhejiang have
established a product traceability system.

Consumers can obtain redwood product information
including raw materials, photos and styles by scanning a
code attached to the product.

Sharp increase in fumigated logs at Manzhouli Port
According to Manzhouli Entry-Exit Inspection and
Quarantine Bureau so far this year the volume of logs
requiring fumigation amounted to around 65,000 cubic
metres. This is seven times more than in the same period
last year.

The main reasons for sharp increase in fumigated logs at
Manzhouli Port are the fast and low cost fumigation
capacity (handling capacity has been increased at
Manzhouli Port) and strong demand for fumigated logs
from processing enterprises.

After fumigation, logs may be transported to other
provinces in Northeast China, Shandong, Hebei, Sichuan,
Qinghai and Ningxia provinces.

Lanshan port C a new timber trading centre in Northern

It has been reported that Lanshan Port will become
significant timber trading centre in Northern China as a
result of State Forestry Administration (SFA) approval for
the building of a national timber trade and processing zone
at the port.

This zone extends over 56,700 square metres capable of
handling around 2 million cubic metres annually. It is
anticipated that a further 24 national timber fumigation
treatment zones with a capacity to handle 1 million cubic
metres will have been completed and operated by the end
of 2015.

On completion of construction logs from Canada, the US,
Russia, Japan, New Zealand and Australia will be
fumigated in the zone.

Lanshan Port is located in northern corner of Yellow Sea
in Haizhou Bay and is southeast of Rizhao city, Shandong
province which is one of the export ports for the new
eastern bridgehead of the Asia-Eurasian Continental

Eucalyptus production to exceed 30 million cubic

Currently eucalyptus is the third most available plantation
timber in China. The area of eucalyptus plantations is
around 4.5 million hectares accounting for just 2% of
Chinas forest area.

However, the annual timber output from these eucalyptus
plantation will exceed 30 million cubic metres making up
around 27% of the annual domestic timber output. It is
estimated that more than 10 million jobs are supported
along the eucalyptus supply and manufacturing chain.



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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