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China Wood Products Prices

16 C 30th November 2016

US Dollar Exchange Rates of  25th  November 2016
China Yuan 6.
Report from China


 Confusion over quarantine certificates
A new regulation will be introduced by the Zhangjiagang
Forest Department requiring that plant quarantine
certificates be processed first by the local Forest
Department and only then can the quarantine certificates
be processed in Zhangjiagang City before traders purchase
imported timber.

Traders say this regulation makes business more difficult
as it will delay dealings and hinder logistics. Analysts
comment that it is not entirely clear why this regulation
has ben introduced. However, this new regulation is being
implemented so timber traders have to prepare to handle
forest plant quarantine certificate in advance and then
come to Zhangjiagang to buy timber.

Promotion pays off with a rise in log imports from
Chinas timber imports from Sweden have been increasing
in recent years because the Swedish Wood Industry
Association has organised and participated in promotional
activities in China.

According to China Customs, timber imports from
Sweden were only 100,000 cubic metres in 2011 but
soared to 530,000 cubic metres in 2015. It is forecast that
imports will grow 35% to 700,000 cubic meteres in 2016.
The imported timber species from Sweden are spruce and
pine and are used to manufacture furniture, flooring,
doors, windows and outdoor furniture.

Logistics zone specifically for Brazilian timber imports
A cooperation agreement had been signed between Dalian
Port Group and Brazilian LNG Forestry Group to establish
a logistics zone in Changxindao Port specifically for
Brazilian timber imports.

The development of a timber logistics industry benefits
from favourable conditions and an extensive area of land
at Changxindao Port. Currently there are 4 berths at the
Port with an annual capacity of 4.5 million tonnes. In
addition there are 8 fumigation chambers with a capacity
of 1 million cubic metres annually.

According to the agreement a procurement platform,
logistics trading venue and overseas forest resources
storage area will be jointly built for imported timber from

The area involved extends over 500,000 square metres and
will support storage, processing, drying, logistics and
trading of imported timber at Changxindao Port.

Expert groups examines potential export barriers
The World Trade Organization (WTO) Secretariat has
released bulletins which will affect trade with the United
States, Malaysia, Mexico, South Korea.

The bulletins are number below.

These bulletins deal with a variety of issues including
wood products standards, timber legality guarantee system
and the standards of formaldehyde emissions.

It is possible that these new measures will affect Chinas
wood and wood products exports trade.

In order to protect the national timber industry and reduce
any possible negative effects of technological trade
measures a meeting was held to discuss the implications of
the new measures.

The meeting was held under the auspices of the
International Inspection and Quarantine Standards and
Technical Regulation Research Center which is part of the
China National General Administration of Quality
Supervision Inspection and Quarantine. The meeting was
hosted by the Fujian Institute of Standardization and more
than 20 experts and representatives of enterprises from
Shanghai, Jiangsu, Shandong participated.

Around 10 suggestions and comments on the proposed
regulations were prepared by the meeting because such
technological trade measures could impact Chinas wood
products exports. Follow-up efforts will be made to fight
against export barriers.

For more see:

Shenzhen to restrict the use of volatile solvents
A new regulation on limiting harmful substance in the
timber industry has been adopted in Shenzhen. The use of
a wide range of paints and adhesives will be forbidden
fully in furniture industry as of 1 January 2017.

Toxic emissions have become a major issue in Shenzhen
City so the local authorities have acted to limit the use of
volatile organic compounds.

The furniture manufacturing is a major industry in
Shenzhen City and as such is the main source of air borne
VOCs. There are about 1,500 furniture enterprises in
Shenzhen city and around 300 are medium or large scale

The regulation will formally implemented as of 1 January
2017. Certain paints and adhesives can be used between 1
January 2017 and the end of April of 2017 after which all
will be forbidden.

New opportunities for New Zealand exporters
According to New Zealand Wood Processors and
Manufacturers Association new opportunities will open up
for its timber industry when the country concludes the
recent round of FTA talks with China.

A statement on the official New Zealand government
website reports that Prime Minister John Key has
announced the launch of negotiations to upgrade the New
Zealand - China Free Trade Agreement (FTA). The
announcement followed a meeting between Trade Minister
Todd McClay and Chinese Commerce Minister Gao
Hucheng at the APEC Summit in Lima, Peru.

Mr. Key said It has been eight years since our FTA with
China came into force and it has exceeded all
expectations. It has an enviable record and showcases to
the world the importance of trade liberalisation. The
upgrade will be an opportunity to deepen and broaden our
comprehensive strategic partnership.

The chairman of New Zealand Wood Association has said
he is confident that more wood products manufactured in
New Zealand will be exported to China when the FTA
upgrade is completed.


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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